Tech Giants Dominate AI Market, Small Startups Struggle: OWITH.ai Podcast Recap

OWITH.ai - Only What's Important to Hear around AI and Tech

Good morning from OWITH.ai: the podcast that gives you only what's important to hear in AI and tech world. Big tech companies like Google and OpenAI are dominating the market for large language models (LLMs), making it too expensive for smaller startups like Character.ai to compete. Character.ai has abandoned its efforts to build LLMs due to the high costs involved. The company recently struck a deal with Google, with cofounders rejoining the tech giant along with a team of researchers. This trend of big tech acquiring or partnering with smaller AI startups is thinning out the competitive market for model development. OpenAI recently secured a massive $6.6 billion funding round, further solidifying its position as a leader in the field. NVIDIA has also released a new open-source model to rival OpenAI's GPT-4o. The market for generative AI models is growing rapidly, with IDC predicting a significant increase in spending on generative AI software in the coming years. Despite the challenges faced by smaller startups, there are still opportunities for innovation and collaboration in the AI industry.Transitioning to our next news, Lorikeet, an AI customer service platform, has raised $5 million in seed funding and emerged from stealth mode. Founded by Australians Steve Hind and Jamie Hall, the company aims to solve complex problems in highly regulated industries by providing personalized responses and innovative solutions. Lorikeet's success has attracted dozens of companies, with Eucalyptus as its first customer. Despite initial skepticism, users have been impressed by Lorikeet's capabilities, which have allowed companies to improve customer service operations without hiring additional staff. Investors like Square Peg see Lorikeet as offering a new way to solve users' complex problems. The company's commitment to building relationships with customers and understanding their needs has resonated across various industries, making it a valuable tool for improving customer service operations. With positive feedback from users and a growing list of customers, Lorikeet is well-positioned to disrupt the AI customer service agent marketplace.Moving on, OpenAI raised an astonishing $6.6 billion, increasing its valuation to $157 billion. The company aims to ensure that artificial general intelligence benefits humanity. Meanwhile, Google is working on reasoning AI to compete with OpenAI. Apple is planning to release a new budget iPhone without a home button, featuring Face ID and Apple intelligence capabilities. The Biden administration is investing $100 million in sustainable semiconductor materials, but critics argue that this may lead to more pollution. Amazon's new Return to Office mandate at Whole Foods has caused controversy, with CEO Jason Buechel attempting to reassure employees about the shift.Lastly, the text discusses the contrasting attitudes towards artificial intelligence (AI) in the business world. OpenAI raised $6.6 billion, showcasing excitement and optimism towards AI, while dockworkers went on strike to resist automation. OpenAI CEO Sam Altman has expressed optimism about the future of AI despite initial concerns and restructuring within the company. On the other hand, Harold J. Daggett, president of the International Longshoremen's Association, is against automation, fearing job loss. The text also mentions Philips CEO Roy Jakobs expanding the company's C-suite to prioritize patient safety and quality after a recall in 2021.Thank you for listening to OWITH.ai: the podcast that keeps you informed on all things AI and tech!

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