No Business Plan? No Problem. ChatGPT Spawns an Investor Gold Rush in AI
Former Google AI researchers Niki Parmar and Ashish Vaswani, co-authors of a seminal 2017 paper that contributed to the boom in generative AI, raised funds for their new startup only weeks after striking out on their own. Despite having no customers, business plan, or formal company name, they received interest from investors eager to back the next big thing in artificial intelligence.
Their fledgling company, now called Essential AI, was valued at around $50 million by these investors, according to people familiar with the matter. This rapid success highlights the growing demand for AI-based technology in various industries.
ChatGPT, a conversational AI model developed by Microsoft Research and OpenAI, has also been taking the AI world by storm. Unlike other AI models that require pre-defined responses, ChatGPT can generate human-like written or spoken language, making it a valuable tool for various applications such as customer service and language translation.
ChatGPT's creators made the model available to the public, which led to a surge of interest from developers and investors looking to incorporate the technology into their projects. The potential for ChatGPT to revolutionize the AI industry has spurred an investor gold rush.
As the demand for AI-based technology continues to grow, startups like Essential AI and breakthroughs like ChatGPT will likely become increasingly valuable. Investors will need to keep a close eye on these developments in order to capitalize on the potential opportunities.
