✨ [Tiferes] AI Future Newsletter - Issue #20

Author

Clark Valberg
October 24, 2023 • Estimated Reading Time: 12 minutes

Welcome to AI Future - your weekly one-stop shop for all things AI.

In a world where tech narratives often get lost in the noise, the financial momentum behind artificial intelligence stands out, signaling a transformative wave across sectors. This week's issue underscores AI's magnetic pull on investors and its increasingly profound footprint in a wide range of industries.

🧲 AI Still Attracting Capital: Funding to AI startups is on the rise despite tech sector funding being down as a whole.

⛏️ AI Gold Mine: Miners are getting significant operational & procurement efficiencies by leveraging AI

🤑 OpenAI Employees Cashing In: Early employee shares sold at an $80 billion valuation.

🌎 Global Involvement: World Health Org. advocates for heavier regulation of AI in healthcare

📰 AI in the News

AI Funding Soars to $17.9 Billion, Defying Broader Tech Slump

In a time when the tech industry is experiencing a slump, artificial intelligence (AI) startups are defying the odds, with funding for the sector skyrocketing to $17.9 billion in the third quarter. This surge in AI investments outpaces funding in every other tech category, marking a 27% global increase compared to the previous year. This growth is even more remarkable given that overall deals for startups declined by 31% to $73 billion worldwide during the same period.

Generative AI technology, which can produce realistic images and human-like text based on brief prompts, has been a significant driver of this funding frenzy. Leading venture capitalists liken the current AI boom to the early days of the consumer internet. Praveen Akkiraju of Insight Partners commented, "This is the web moment, the HTML moment, for generative AI." He further highlighted the role of user-friendly programs, such as OpenAI's ChatGPT, in propelling AI's mainstream adoption.

However, it's not all sunshine for the AI industry. Despite the impressive numbers, total fundraising for AI is still below the figures from two years ago, during the peak of the pandemic tech boom. The current success is primarily attributed to significant deals involving a few major players, including Anthropic and OpenAI. As the AI hype continues, other sectors are adopting a more cautious approach, waiting to see how the landscape evolves. Full Story

Big Tech's Race for AI Dominance: Apple Leads in Acquisitions

In the competitive landscape of artificial intelligence (AI), Apple emerges as the frontrunner, having acquired over 30 AI startups in the past decade. Google trails closely with 21 acquisitions. Interestingly, 2023 has seen a lull in AI mergers and acquisitions (M&A) among these tech giants. Only Apple and Google have announced AI-related acquisitions this year, with Apple acquiring AI video compression startup WaveOne and Google purchasing the AI-powered math app Photomath.

Several key insights emerge from big tech's AI activity:

  1. AI Enhancing Core Products: Apple's consistent AI acquisitions have been pivotal in enhancing iPhone features, notably Siri. Google's acquisition of DeepMind in 2014 remains foundational to its ongoing AI research.

  2. A Decline in Big Tech Acquisitions: As mentioned briefly before, despite their historical trend of acquiring startups for tech talent and market expansion, big tech's acquisition activity hit an 18-quarter low in Q2’23. This decline is attributed to a challenging regulatory environment, particularly in the US and Europe, and a risk-averse approach by strategic acquirers.

  3. Increased AI Investment Activity: While some tech giants are holding back on acquisitions, they are ramping up their AI investments. Microsoft stands out, having invested in nine AI companies in 2023, including Inflection AI and OpenAI. This is a significant jump from its three investments in 2022. Microsoft's M12 venture arm has also been active, closing five AI deals this year.

  4. Continued AI Investment Amid Computing Boom: Amazon recently announced plans to invest up to $4 billion in AI chatbot developer Anthropic, aiming to compete with rivals Google and Microsoft. Nvidia, has also been part of some of the year's most significant AI funding rounds.

As the AI sector continues to evolve, these tech giants' strategic moves will play a crucial role in shaping the industry's future. Full Story

More Stories

  • Thrive Capital spearheads OpenAI employee share purchase at a staggering $80B+ valuation (link)

  • Miners/Drillers seeing significant efficiencies across multiple KPIs by leveraging AI (link)

  • U.S. tightens the noose on AI chip exports, including Nvidia's H800, to China (link)

  • NSA Launches AI Security Center to Safeguard US National Security Systems from AI Threats (link)

  • IBM and AWS Collaborate on GenAI for Contact Centers and Beyond, Amplifying Customer Engagement (link)

  • Strider Technologies unveils its next-gen generative AI search capabilities (link)

  • G42 and OpenAI join forces, eyeing AI expansion in the Middle East (link)

  • Mews acquires AI-driven hotel startup, among other notable travel tech deals (link)

  • Meta makes strides in decoding brainwaves to generate images (link)

💡 Industry Insights

🏥 Healthcare

WHO on AI Regulation: The World Health Organization (WHO) emphasizes the need for effective regulation of AI in healthcare, highlighting its potential to enhance health outcomes but also pointing out challenges like unethical data collection, cybersecurity threats, and potential biases. (link)

AI Diabetes Detection via Voice Audio: Scientists from US-based Klick Labs have developed an AI model that can determine if someone has Type 2 diabetes by analyzing just 6 to 10 seconds of their voice audio. The tool showcased an accuracy rate of 89% for women and 86% for men. This innovative approach could revolutionize diabetes screening, making it more accessible and cost-effective. (link)

AI Pain Recognition: A new AI tool has been developed to detect pain levels in patients before, during, and after surgery. By analyzing facial expressions and physiological data, the AI system offers real-time pain assessments, aiding healthcare professionals in providing timely and appropriate pain management interventions. (link)

🏠 Real Estate

Real Estate Tech Expectations: JLL's 2023 Global Real Estate Technology Survey reveals that 91% of commercial real estate occupiers are willing to pay a premium for tech-enabled spaces. The focus is shifting from remote working tools to in-office collaboration technology, with sustainability tools accounting for the largest share of tech budget increases. (link)

AI in Property Marketing: La Rosa Holdings Corp. introduces "Jaeme", an AI-powered tool developed with OpenAI, to revolutionize real estate. Jaeme analyzes data, identifies trends, and tailors marketing strategies, automating tasks and enhancing efficiency for realtors. (link)

⚖️Legal

AI in Law: The New York State Bar Association notes AI's growing role in legal tasks like research and document drafting. The shift could lead to fees based on results, not hours. However, concerns arise about maintaining attorney-client confidentiality with AI tools. (link)

Google's AI Controversy: Google faces a lawsuit accusing it of using online content to train its AI without permission. The tech giant defends its practices, stating that using public data isn't theft. This case could have implications for the entire generative AI field. (link)

📈 Venture Deals

  • Beijing-based Zhipu raised $342 million to Rival OpenAI's ChatGPT (link)

  • Nirvana Insurance clinches $57 million, steering AI innovation into commercial trucking insurance. (link)

  • Together secures $50 million, offering AI chips on rent to firms via a cloud service. (link)

  • Procurify lands $50 million, doubling down on AI-powered procurement tools. (link)

  • Machina Labs bags $32 million, accelerating the manufacture of advanced composite and metal products. (link)

  • Orbem nabs €30 million, broadening its AI-powered imaging horizons across food, construction, and medical sectors. (link)

  • JetCool secures $17 million, focusing on the cooling needs of data centers. (link)

  • Neura Robotics attracts $16 million, crafting robots with the senses of sight, sound, and touch. (link)

  • Reality Defender raises $15 million, leading the charge against deepfakes across text, video, and images. (link)

  • Mana Bio secures $14.5 million, setting sights on revolutionizing AI-driven drug delivery. (link)

  • Pantomath garners $14 million, expanding its visionary data observability platform. (link)

🛠️ Latest AI Tools

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