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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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OpenAI Launches SearchGPT, a Search Engine Driven by AI

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The highly anticipated launch of SearchGPT, an AI-powered search engine that provides real-time access to information on the internet, by OpenAI is being made public.

“What are you looking for?” appears in a huge text box at the top of the search engine. However, SearchGPT attempts to arrange and make sense of the links rather than just providing a bare list of them. In one instance from OpenAI, the search engine provides a synopsis of its discoveries regarding music festivals, accompanied by succinct summaries of the events and an attribution link.

Another example describes when to plant tomatoes before decomposing them into their individual types. You can click the sidebar to access more pertinent resources or pose follow-up questions once the results are displayed.

At present, SearchGPT is merely a “prototype.” According to OpenAI spokesman Kayla Wood, the service, which is powered by the GPT-4 family of models, will initially only be available to 10,000 test users. According to Wood, OpenAI uses direct content feeds and collaborates with outside partners to provide its search results. Eventually, the search functions should be integrated right into ChatGPT.

It’s the beginning of what may grow to be a significant challenge to Google, which has hurriedly integrated AI capabilities into its search engine out of concern that customers might swarm to rival firms that provide the tools first. Additionally, it places OpenAI more squarely against Perplexity, a business that markets itself as an AI “answer” engine. Publishers have recently accused Perplexity of outright copying their work through an AI summary tool.

OpenAI claims to be adopting a notably different strategy, suggesting that it has noticed the backlash. The business highlighted in a blog post that SearchGPT was created in cooperation with a number of news partners, including businesses such as Vox Media, the parent company of The Verge, and the owners of The Wall Street Journal and The Associated Press. “News partners gave valuable feedback, and we continue to seek their input,” says Wood.

According to the business, publishers would be able to “manage how they appear in OpenAI search features.” They still appear in search results, even if they choose not to have their content utilized to train OpenAI’s algorithms.

According to OpenAI’s blog post, “SearchGPT is designed to help users connect with publishers by prominently citing and linking to them in searches.” “Responses have clear, in-line, named attribution and links so users know where information is coming from and can quickly engage with even more results in a sidebar with source links.”

OpenAI gains from releasing its search engine in prototype form in several ways. Additionally, it’s possible to miscredit sources or even plagiarize entire articles, as Perplexity was said to have done.

There have been rumblings about this new product for several months now; in February, The Information reported on its development, and in May, Bloomberg reported even more. A new website that OpenAI has been developing that made reference to the transfer was also seen by certain X users.

ChatGPT has been gradually getting closer to the real-time web, thanks to OpenAI. The AI model was months old when GPT-3.5 was released. OpenAI introduced Browse with Bing, a method of internet browsing for ChatGPT, last September; yet, it seems far less sophisticated than SearchGPT.

OpenAI’s quick progress has brought millions of users to ChatGPT, but the company’s expenses are mounting. According to a story published in The Information this week, OpenAI’s expenses for AI training and inference might total $7 billion this year. Compute costs will also increase due to the millions of people using ChatGPT’s free edition. When SearchGPT first launches, it will be available for free. However, as of right now, it doesn’t seem to have any advertisements, so the company will need to find a way to make money soon.

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Google Revokes its Intentions to stop Accepting Cookies from Marketers

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Following years of delay, Google has announced that it will no longer allow advertisers to remove and replace third-party cookies from its Chrome web browser.

Cookies are text files that websites upload to a user’s browser so they can follow them around when they visit other websites. A large portion of the digital advertising ecosystem has been powered by this practice, which makes it possible to track people across many websites in order to target ads.

Google stated in 2020 that it would stop supporting certain cookies by the beginning of 2022 after determining how to meet the demands of users, publishers, and advertisers and developing solutions to make workarounds easier.

In order to do this, Google started the “Privacy Sandbox” project in an effort to find a way to safeguard user privacy while allowing material to be freely accessible on the public internet.

In January, Google declared that it was “extremely confident” in the advancement of its plans to replace cookies. One such proposal was “Federated Learning of Cohorts,” which would essentially group individuals based on similar browsing habits; thus, only “cohort IDs”—rather than individual user IDs—would be used to target them.

However, Google extended the deadline in June 2021 to allow the digital advertising sector more time to finalize strategies for better targeted ads that respect user privacy. Then, in 2022, the firm stated that feedback had indicated that advertisers required further time to make the switch to Google’s cookie replacement because some had resisted, arguing that it would have a major negative influence on their companies.

The business announced in a blog post on Monday that it has received input from regulators and advertisers, which has influenced its most recent decision to abandon its intention to remove third-party cookies from its browser.

According to the firm, testing revealed that the change would affect publishers, advertisers, and pretty much everyone involved in internet advertising and would require “significant work by many participants.”

Anthony Chavez, vice president of Privacy Sandbox, commented, “Instead of deprecating third-party cookies, we would introduce a new experience in Chrome that lets people make an informed choice that applies across their web browsing, and they’d be able to adjust that choice at any time.” “We’re discussing this new path with regulators and will engage with the industry as we roll it out.”

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 Samsung Galaxy Buds 3 Pro Launch Postponed Because of Problems with Quality Control

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At its Unpacked presentation on July 10, Samsung also debuted its newest flagship buds, the Galaxy Buds 3 Pro, with the Galaxy Z Fold 6, Flip 6, and the Galaxy Watch 7. Similar to its other products, the firm immediately began taking preorders for the earphones following the event, and on July 26th, they will go on sale at retail. But the Korean behemoth was forced to postpone the release of the Galaxy Buds 3 Pro and delay preorder delivery due to quality control concerns.

The Galaxy Buds 3 Pro went on sale earlier this week in South Korea, Samsung’s home market, in contrast to the rest of the world. However, allegations of problems with quality control quickly surfaced. These included loose case hinges, earbud joints that did not sit flush, blue dye blotches, scratches or scuffs on the case cover, and so on. It appears that the issues are exclusive to the white Buds 3 Pro; the silver devices are working fine.

Samsung reportedly sent out an email to stop selling Galaxy Buds 3 Pros, according to a Reddit user. These problems appear to be a result of Samsung’s inadequate quality control inspections. Numerous user complaints can also be found on its Korean community forum, where one consumer claims that the firm would enhance quality control and reintroduce the earphones on July 24.

 A Samsung official stated. “There have been reports relating to a limited number of early production Galaxy Buds 3 Pro devices. We are taking this matter very seriously and remain committed to meeting the highest quality standards of our products. We are urgently assessing and enhancing our quality control processes.”

“To ensure all products meet our quality standards, we have temporarily suspended deliveries of Galaxy Buds 3 Pro devices to distribution channels to conduct a full quality control evaluation before shipments to consumers take place. We sincerely apologize for any inconvenience this may cause.”

Should Korean customers encounter problems with their Buds 3 Pro devices after they have already received them, they should bring them to the closest service center for a replacement.

Possible postponement of the US debut of the Galaxy Buds 3 Pro

Samsung seems to have rescheduled the launch date and (some) presale deliveries of the Galaxy Buds 3 Pro in the US and other markets by one month. Inspect your earbuds carefully upon delivery to make sure there are no issues with quality control, especially if your order is still scheduled for July.

The Buds 3 Pro is currently scheduled for delivery in late August, one month after its launch date, on the company’s US store. Additionally, Best Buy no longer takes preorders for the earphones, and Amazon no longer lists them for sale.

There are no quality control difficulties affecting the Buds 3, and they are still scheduled for delivery by July 24, the day of launch. Customers of the original Galaxy Buds 3 Pro have reported that taking them out is easy to tear the ear tips. Samsung’s delay, though, doesn’t seem to be related to that issue.

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