Replit Raises $97 Million For AI Coding, Hugging Face Launches Alternative to ChatGPT
Replit, a company that combines AI with software development, recently raised $97.4 million in funding led by Silicon Valley VCs including Andreessen Horowitz and Khosla Ventures. The company's user base has grown to 22.5 million developers, and it has announced a partnership with Google's cloud services and Ghostwriter Chat, an AI bot designed for software development. Replit's fundraising round, which values the company at $1.2 billion, also included investments from SV Angel, Y Combinator, Bloomberg Beta, and AngelList cofounder Naval Ravikant.
Meanwhile, Hugging Face released its own version of ChatGPT, an open-source alternative to OpenAI's AI chatbot, developed by Open Assistant, a project organized by LAION. Hugging Face closed a $100 million Series C last year, with VC backers including Lux Capital, Sequoia, Coatue Addition, Betaworks, AIX Ventures, and Cygni Capital.
These developments reflect the growing importance of AI in the tech industry. Companies such as Amazon, Microsoft, and Google are benefiting from AI's thirst for compute power. Meta, despite losses in its XR efforts, pleased Wall Street with its new focus on AI and cost-cutting layoffs. Other companies are also investing in the technology; PwC plans to invest $1 billion in generative AI technology in its U.S. operations over the next three years, while Coca-Cola is collaborating with OpenAI and Bain & Company to use text and image generators ChatGPT and DALL-E to enhance marketing capabilities, business operations, and build capabilities through cutting-edge AI.
However, some companies are facing backlash from users who are becoming increasingly wary of AI and personal data collection. Snapchat's new AI chatbot, "My AI," powered by OpenAI's GPT technology, has received negative reviews, with users complaining that the feature is invasive and appeared inside their app without warning or consent. This shows that companies need to be mindful of user privacy concerns when implementing AI technologies.
