Tech Overload: Business Goes Under Water

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TAUSIF ALAM & AMIT RAJA NAIK Monday, Jan 8, 2024 | Was this email forwarded to you? Sign up here ___________________________________________________________ According to media reports, OpenAI’s annual run rate is expected to touch $1.6 billion in 2024. This marks a $300 million increase from the previously forecasted $1.3 billion in October last year, attributed to revenue sources such as ChatGPT subscriptions and API access. Similarly, Anthropic’s annualised revenue may hit $850 million in 2024. This is a massive growth for the company which had a revenue run rate of $100 million in September 2023. Another major AI company Midjourney claims that it clocked $200 million in 2023 from its subscription model that charges users between $10 and $120 monthly. These numbers paint a very hunky-dory picture of the generative AI field. However, the entire story turns upside down when you flip the coin.    It took $10 billion for OpenAI to build different versions of GPT. Anthropic, the creator of AI chatbot Claude 2, had raised about $3 billion till September 2023, and was in talks with Amazon, Google and others to raise as much as $5 billion over the next two years.  The contrast between the annualised revenue and funding raised by these companies shows that the revenue generated is not enough to support the business. This raises a big question mark on the long-run financial sustainability of OpenAI and other generative AI companies.  It’s time these AI companies ventured beyond the current subscription models. Well, some are thinking outside the box. OpenAI, for instance, is entering the enterprise sector and exploring the AI server chip business with funding from Abu Dhabi's G42. Stability AI has shifted from open source to subscription fees for enterprise clients, aiming for more substantial income.  Alternatively, some, like Midjourney's David Holz, advocate bootstrapped growth with a focused product.  Read the full story here. Samsung’s New AI Phone When LLM boomed, everyone was waiting for the technology to arrive on the phones, for that’s where the democratisation of AI technology would begin. Samsung, the leader in the smartphone segment, is coming up with an AI phone. The company has given a glimpse of the Galaxy AI, hinting at the upcoming Galaxy S24 phone series.  Samsung's earlier announcement of the generative AI model Samsung Gauss further emphasises its commitment to AI, offering tools for language, code, and image generation to enhance user experience, putting it in competition with Google's AI-enabled suite and Apple's integrated AI capabilities. Read the full story here. Bosch on Hiring Spree Bosch's Global Services and Solutions division (BGSW) emphasises data-driven decision-making for global impact, focusing on innovations like autonomous mobility and AI-powered pharmaceutical R&D.  The hiring process for their data science team involves AI-enabled tools for resume screening, technical assessments, and interviews that assess candidates for a 'can-do spirit’,' structured thinking, and proficiency in statistical modelling and NLP algorithms. Advanced ATS products, LinkedIn insights, and Google X-ray aid in identifying talent, while a final assessment evaluates leadership skills.  Read the full story here. Deepfake Seeps into Politics     Indian elections are near, and so are the elections in over 50 countries. Meanwhile, the rise of deepfake technology poses a serious threat to democracies worldwide, with hyper-realistic videos potentially influencing elections.  Many such cases were seen during the recent Bangladesh election, where deepfake images and videos were widely used to spread disinformation. Swift action is imperative, as inexpensive deepfake services are already impacting elections.  India also faced a politically-motivated AI-generated audio incident, emphasising the need for detection tools. Government has proposed a four-point plan for detection, prevention, reporting, and awareness to media companies. Read the full story here. AIM is asking for your help with a 10-minute survey about the "Effective Utilization of Public Domain Data." Please fill in this survey. DOWNLOAD OUR MOBILE APP Stay Connected info@analyticsindiamag.com © 2023 Analytics India Magazine

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