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AI is Becoming A Major Focus For Venture Capital Investors

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AI is Becoming A Major Focus For Venture Capital Investors

Silicon Valley investors have gone crazy with artificial intelligence after ChatGPT’s seismic breakthrough a year ago. They’re constantly searching for the next big thing amid a sea of hype and overpromising.

With ChatGPT, which can develop computer code, write stories, draw drawings, and more with simple text inputs, OpenAI ignited a generative AI frenzy.

Venture investors have immediately doubled down on artificial intelligence (AI), a new promised land in the never-ending chase for massive tech riches, after being hurt by the failures of cryptocurrencies and other failed Silicon Valley fads in recent years.

After meeting with a number of investment fund directors, Denis Barrier, co-founder of the venture capital firm Cathay Innovation, told AFP that for the large investors, “if it’s not AI, it’s not worth it.”

“Funds are looking to make big moves,” Barrier said.

“And that’s pretty unlikely outside AI in the next few years.”

While budget cuts and layoffs became commonplace at internet companies last year, according to market tracker Crunchbase, startups in the AI space attracted close to $50 billion from investors.

During the initial phase of the AI boom, a lot of capital was allocated to businesses creating the massive language models that enable generative AI capabilities.

PitchBook reports that a record $29 billion was invested in generative AI in 2023.

“Cost lives”

However, the computational requirements of creating foundational models from scratch are quite high, and the majority of funding for this kind of work can only come from the wealthiest investors, like Google, Microsoft, Amazon, and Nvidia, and goes to select groups like Anthropic and OpenAI.

This week, Microsoft announced that Mistral, a burgeoning French startup creating its own models, had raised further funding from some of Silicon Valley’s wealthiest investors, including Nvidia and Andreessen Horowitz, one of the industry’s most assertive companies.

“We believe that any slowdown in AI will cost lives,” wrote the rock star venture capitalist Marc Andreessen last year in his “Techno-Optimist Manifesto.”

However, many venture capitalists have shifted their focus to more narrowly focused AI businesses that have the potential to disrupt the banking, healthcare, energy, and other industries because they are intimidated by the cost of entry.

Recently, Bioptimus, a French biotech startup using AI to develop novel medications, received funding from Cathay.

Barrier indicated in his downtown office with a view of San Francisco Bay that Cathay looked at engineering skill, data access, cost restrictions, and a goal to alter a sector while searching for promising startups.

Barrier stated, “You have to have a little faith.”

‘For real’

Last week, Loora, an Israeli firm that teaches English through generative AI, raised $12 million.

With a price tag that is comparable to a Netflix membership, over 15,000 users have downloaded Loora’s mobile applications, which teach English through conversation.

From his Tel Aviv headquarters, Loora co-founder Roy Mor told AFP that simply embracing AI is not going to attract investors.

According to him, what businesses really need is more of the appropriate data to enhance the app and user experience.

“I think the use cases where AI really brings value, where it solves problems, are not yet widespread,” he stated.

As of right now, the business sector holds the greatest promise for returns on investment, which is why a lot of startups are concentrating there.

The leader in large-scale data analysis, or the core of artificial intelligence, Alembic, recently raised $14 million.

The startup assesses marketing campaign efficacy using methods initially created to analyze health data during the coronavirus outbreak.

Jeffrey Katzenberg, the co-founder of DreamWorks and former chairman of Walt Disney Studios, founded WndrCo, a venture capital firm that is supporting Alembic.

“AI is real,” the former high-ranking Hollywood official told AFP.

“It’s not an evolution, but a revolution, a positive revolution.”

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AI Features of the Google Pixel 8a Leaked before the Device’s Planned Release

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A new smartphone from Google is anticipated to be unveiled during its May 14–15 I/O conference. The forthcoming device, dubbed Pixel 8a, will be a more subdued version of the Pixel 8. Despite being frequently spotted online, the smartphone has not yet received any official announcements from the company. A promotional video that was leaked is showcasing the AI features of the Pixel 8a, just weeks before its much-anticipated release. Furthermore, internet leaks have disclosed software support and special features.

Tipster Steve Hemmerstoffer obtained a promotional video for the Pixel 8a through MySmartPrice. The forthcoming smartphone is anticipated to include certain Pixel-only features, some of which are demonstrated in the video. As per the video, the Pixel 8a will support Google’s Best Take feature, which substitutes faces from multiple group photos or burst photos to “replace” faces that have their eyes closed or display undesirable expressions.

There will be support for Circle to Search on the Pixel 8a, a feature that is presently present on some Pixel and Samsung Galaxy smartphones. Additionally, the leaked video implies that the smartphone will come equipped with Google’s Audio Magic Eraser, an artificial intelligence (AI) tool for eliminating unwanted background noise from recorded videos. In addition, as shown in the video, the Pixel 8a will support live translation during voice calls.

The phone will have “seven years of security updates” and the Tensor G3 chip, according to the leaked teasers. It’s unclear, though, if the phone will get the same amount of Android OS updates as the more expensive Pixel 8 series phones that have the same processor. In the days preceding its planned May 14 launch, the company is anticipated to disclose additional information about the device.

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Apple Unveils a new Artificial Intelligence Model Compatible with Laptops and Phones

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All of the major tech companies, with the exception of Apple, have made their generative AI models available for use in commercial settings. The business is, nevertheless, actively engaged in that area. Wednesday saw the release of Open-source Efficient Language Models (OpenELM), a collection of four incredibly compact language models—the Hugging Face model library—by its researchers. According to the company, OpenELM works incredibly well for text-related tasks like composing emails. The models are now ready for development and the company has maintained them as open source.

In comparison to models from other tech giants like Microsoft and Google, the model is extremely small, as previously mentioned. 270 million, 450 million, 1.1 billion, and 3 billion parameters are present in Apple’s latest models. On the other hand, Google’s Gemma model has 2 billion parameters, whereas Microsoft’s Phi-3 model has 3.8 billion. Minimal versions are compatible with phones and laptops and require less power to operate.

Apple CEO Tim Cook made a hint in February about the impending release of generative AI features on Apple products. He said that Apple has been working on this project for a long time. About the details of the AI features, there is, however, no more information available.

Apple, meanwhile, has declared that it will hold a press conference to introduce a few new items this month. Media invites to the “special Apple Event” on May 7 at 7 AM PT (7:30 PM IST) have already begun to arrive from the company. The invite’s image, which shows an Apple Pencil, suggests that the event will primarily focus on iPads.

It seems that Apple will host the event entirely online, following in the footsteps of October’s “Scary Fast” event. It is implied in every invitation that Apple has sent out that viewers will be able to watch the event online. Invitations for a live event have not yet been distributed.
Apple has released other AI models before this one. The business previously released the MGIE image editing model, which enables users to edit photos using prompts.

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Google Expands the Availability of AI Support with Gemini AI to Android 10 and 11

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Android 10 and 11 are now compatible with Google’s Gemini AI, which was previously limited to Android 12 and above. As noted by 9to5google, this modification greatly expands the pool of users who can take advantage of AI-powered support for their tablets and smartphones.

Due to a recent app update, Google has lowered the minimum requirement for Gemini, which now makes its advanced AI features accessible to a wider range of users. Previously, Gemini required Android 12 or later to function. The AI assistant can now be installed and used on Android 10 devices thanks to the updated Gemini app, version v1.0.626720042, which can be downloaded from the Google Play Store.

This expansion, which shows Google’s goal to make AI technology more inclusive, was first mentioned by Sumanta Das on X and then further highlighted by Artem Russakoviskii. Only the most recent versions of Android were compatible with Gemini when it was first released earlier this year. Google’s latest update demonstrates the company’s dedication to expanding the user base for its AI technology.

Gemini is now fully operational after updating the Google app and Play Services, according to testers using Android 10 devices. Tests conducted on an Android 10 Google Pixel revealed that Gemini functions seamlessly and a user experience akin to that of more recent models.

Because users with older Android devices will now have access to the same AI capabilities as those with more recent models, the wider compatibility has important implications for them. Expanding Gemini’s support further demonstrates Google’s dedication to making advanced AI accessible to a larger segment of the Android user base.

Users of Android 10 and 11 can now access Gemini, and they can anticipate regular updates and new features. This action marks a significant turning point in Google’s AI development and opens the door for future functional and accessibility enhancements, improving everyone’s Android experience.

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