ChatGPT triggers ‘gold rush’ for artificial intelligence
Generative AI, of which ChatGPT is an example, navigates through oceans of data to deliver original content—an image, a poem, a 100-word essay in seconds and with a simple request.
ChatGPT, Silicon Valley’s latest standout app, is sending investors scrambling to find the next ‘nugget’ in generative Artificial Intelligence (AI), the technology hailed by some as the dawn of a new era.
For decades, AI has become more and more pervasive in daily life, but the November launch of startup company OpenAI’s chatbot marked a turning point in the general public and investor perception.
We occasionally experience the emergence of platforms that give rise to an explosion of new businesses. AI may be the upcoming platform, according to Shernaz Daver of the California-based investment company Khosla. We witnessed this with the internet and mobile devices.
Generative AI, of which ChatGPT is an example, navigates through oceans of data to deliver original content—an image, a poem, a 100-word essay in seconds and with a simple request.
Since its low-key launch in late November, ChatGPT has become one of the fastest-growing apps ever, prompting Microsoft and Google to accelerate projects that until now have been closely guarded amid fears the technology wasn’t ready for growth. public use.
Wayne Hu, a partner at SignalFire, a different startup financing firm, claimed that five days after its launch, ChatGPT had one million users—a growth rate 60 times quicker than Facebook in attaining that milestone.
He said, “Suddenly, all the investors are talking about how ChatGPT might destroy millions of skilled jobs, upend trillion-dollar sectors, and radically alter how people learn, consume, and make choices.
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The explosion of generative AI comes at an otherwise bleak time for the tech industry, with tens of thousands of layoffs cascading at the world’s biggest companies as well as smaller ones struggling to survive.
“While other categories (of companies) are facing shrinking valuations and seeking capital, generative AI companies are not,” Daver said.
For his part, Hu explained that market values for generative AI companies have skyrocketed while they have contracted for all others.
“Hard to maintain”
OpenAI, the company that created ChatGPT, was valued by Microsoft at about $30 billion even though it continues to burn money at a rapid rate, Hu said.
Entrepreneurs who specialize in generative AI say they no longer need to shout for attention when seeking capital or delve into the details of what they’re trying to deliver.
“This has helped a lot,” said Sarah Nagy, founder of Seek AI, a start-up that allows inexperienced users to extract technical information from databases using everyday language queries.
Before ChatGPT, she emphasized, “I had to explain what generative AI is and why it’s vital.”
Now, it seems that everyone wants ChatGPT-like features, not just investors.
“User demand has significantly grown,” Nagy added. “Because we are still a tiny business it is especially challenging to sustain.”
The business owner wants to expand her workforce, and despite the industry trend towards shrinking, Daver claims that “we are currently hiring” in the field of generative AI.
The tech oligopolies have received a lot of attention lately, most notably Microsoft, an investor in and collaborator with OpenAI, and Google, which is making an effort to compete.
A galaxy of entrepreneurs, though, also have ideas to offer in its shadow.
Other recent examples with funding rounds include the Californian company Kognitos, which seeks to automate administrative tasks, as well as the design platform Poly, capable of generating three-dimensional maps or graphs in seconds.
In addition to conventional venture funds, tech giants are on the prowl, like Google, which just invested $300 million to buy 10% of Anthropic and its chatbot Claude.
Hu believes that the ChatGPT “gold rush” could be unprecedented and expand well beyond generative AI because the technology itself minimizes the need for a code programmer or designer to execute ideas.
“Now you no longer need a Stanford Ph.D. in computer science: any developer can build something awesome on top of ChatGPT and other basic models in a weekend,” he explained.
Hu predicted that this wave of AI would be more significant than the cloud or mobile technologies, similar to how the Industrial Revolution altered the trajectory of human history.
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