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💸 AI Earns $1M from Freelance Work?

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Read time: 5 minutes

Everybody always says that AI can now replace an intern. But what about a freelancer? Can AI take over this role too? There are about 3.7 million freelancers in the US. Are you worried about AI replacing freelance jobs?

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AI INSIGHTS

🤖 Can AI Earn $1M from Freelance Software Work?

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This report introduces SWE-Lancer, a benchmark that evaluates large language models (LLMs) on 1,488 freelance software engineering tasks from Upwork, collectively worth $1 million USD. The benchmark assesses both:

  1. Independent Software Engineering (IC SWE) Tasks – where models generate real-world code fixes and features.

  2. SWE Manager Tasks – where models evaluate and select the best engineering proposals.

The study aims to quantify AI’s real-world economic value in software engineering.

Key takeaways:

1. Current AI models still struggle with real-world software engineering

  • The best-performing model (Claude 3.5 Sonnet) only solved 26.2% of IC SWE tasks and 44.9% of SWE Manager tasks.

  • Claude 3.5 earned $208K out of $500K in the SWE-Lancer Diamond subset and $403K out of $1M in the full dataset.

2. Model Performance Analysis

Model

IC SWE Accuracy (Pass@1)

SWE Manager Accuracy (Pass@1)

Total Earnings (Diamond Set)

Claude 3.5 Sonnet

26.2%

44.9%

$208K / $500K (41.5%)

o1 (High Reasoning Effort)

16.5%

41.5%

$166K / $500K (33.1%)

GPT-4o

8.0%

37.0%

$139K / $500K (27.7%)

  • Claude 3.5 Sonnet performs the best, earning 40.3% of the total possible earnings in the full set.

  • More computational reasoning (test-time compute) improves performance but doesn’t fully close the gap.

3. Challenges AI Models Face

  • AI struggles with complex, full-stack engineering tasks.

→ Models locate bugs quickly but fail to fix root causes. They miss edge cases and lack deep contextual understanding.

  • AI models fail more often on implementation than evaluation.

→ Models are better at selecting solutions (SWE Manager tasks) than writing code.

  • AI-generated code lacks robustness.

→ Models often modify the wrong part of the code or apply partial fixes. Human engineers triple-verified the tests to ensure accurate evaluation.

Why it matters: SWE-Lancer provides a realistic, economically grounded benchmark for testing AI’s software engineering abilities. Current LLMs cannot yet replace freelance engineers but show potential in technical decision-making and partial automation.

The benchmark offers valuable insights for both AI research and the future of software engineering work in an AI-driven world.

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TODAY IN AI

AI HIGHLIGHTS

🤖 China is making AI a national priority, pouring more capital into the race. DeepSeek’s low-cost models are now matching or even outperforming some Western rivals. With fresh funding and momentum, OpenAI has real competition.

⚙️ The world’s smartest AI (Grok 3) is now free to use - at least until the servers can’t handle it. If you’re on X Premium+ or SuperGrok, you get more access plus early features like Voice Mode. Enjoy it while it lasts.

💻 Microsoft has built the world’s first topological superconductor, making qubits more stable and scalable. Majorana 1 claimed that they can fit a million qubits on a single chip—a huge leap forward.

🚬 ChatGPT-powered conversational hypnosis is a low-cost alternative to therapy. One user and their friend quit nicotine and alcohol, with 120+ others reporting success—proving AI can drive real behavior change.

🧬 NVIDIA’s Evo 2 AI models DNA, RNA, and proteins across all life forms, scaling to 40B parameters and 1M token context. Trained on 9 trillion nucleotides, it’s reshaping genomics, drug discovery, and disease research.

💰 Daily AI Fundraising: Baseten Raises $75M, now valued at $825M. AI startup Baseten helps companies deploy AI models across multiple clouds, cutting inference costs by 40%

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AI PROMPT

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Greg Brockman shared the following prompt format for o1 (OpenAI’s reasoning models)

You can even upload a screenshot and say, “Help me write a prompt using this structure.”

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