Google announces Gemini, OpenAI Chaos,VC shutdowns
Tech Tumult: Google Unveils Gemini, OpenAI's Chaos Emerges, Late Stage Startups Forced Shutdowns
By @HooiTerrence
Chief Investment Strategist
The below is the opinion of the authors. Any conclusions are their own. This should not be considered as investment advice. Investing involves the risk of loss and returns are not guaranteed.
1.) Shock and Chaos at OpenAI
In grasping the tumultuous developments of the recent weekend – the abrupt dismissal of OpenAI’s CEO, Sam Altman, a central figure in the generative-AI movement, the ensuing rumors of his potential reinstatement, and the subsequent, equally surprising news of his move to lead a new AI team at Microsoft – it's essential to recognize that OpenAI differs fundamentally from typical tech giants of our era like Meta and Google. It’s not just a technology firm in the traditional sense.
Singular’s Insights: OpenAI was purposefully designed to counter the norms prevalent in much of the tech sector, marked by an unyielding quest for expansion and a tendency to rapidly launch consumer products without extensive forethought. Established in 2015 as a nonprofit, its mission was the development of artificial general intelligence (AGI), aimed at benefiting 'humanity as a whole.' This AGI, as envisioned by OpenAI, would possess the capability to surpass human performance in the majority of economically significant tasks.
2.) Google Launches Gemini
Google's AI horizon is expanding into an exhilarating new phase, heralded by CEO Sundar Pichai as the "Gemini era." This breakthrough is embodied by Gemini, Google's latest and most advanced large language model, initially previewed at the I/O developer conference last June and now making its grand debut to the public. As Pichai and Demis Hassabis, CEO of Google DeepMind, articulate, Gemini represents a monumental stride in AI development, poised to transform virtually every Google product. Pichai emphasizes the transformative potential of this technology: by enhancing one core technology, its benefits ripple through the entire suite of Google's offerings.
But Gemini isn't just a monolith; it's a versatile ecosystem of AI models. There's the sleek "Gemini Nano," optimized for native, offline operations on Android devices. Then there's the robust "Gemini Pro," soon to be the driving force behind numerous Google AI services and the current backbone of Bard. And finally, the formidable "Gemini Ultra," Google's most potent LLM yet, primarily aimed at data centers and enterprise applications.
Singular’s Take: Google is rolling out Gemini in several ways: Bard now harnesses the power of Gemini Pro, and Pixel 8 Pro users can look forward to novel features courtesy of Gemini Nano. (Keep an eye out for Gemini Ultra next year.) Starting December 13th, developers and enterprise clients can tap into Gemini Pro via Google Generative AI Studio or Vertex AI on Google Cloud. Currently available only in English, plans to add more languages are on the horizon. Pichai envisions Gemini's integration across Google's vast landscape, from the search engine and advertising platforms to the Chrome browser and beyond. It's not just a new chapter for Google—it's the future, arriving just in the nick of time.
3.) Late Stage VC Shutdowns
2023 has been a challenging year for startups seeking venture capital funding, with a notable increase in the time it takes to secure a deal. According to recent data from Carta, an equity ownership platform, there's a significant extension in the duration between funding rounds for startups on its platform.
For instance, startups that secured a Series C in the third quarter averaged around three years (1,090 days) since their last Series B round. Similarly, those raising a Series A took over two years (787 days) on average since their seed round, a timeline that was considerably shorter earlier in the year. This slowdown is attributed to many startups having last raised funds during the mid-2020 pandemic recovery phase or the 2021 to early 2022 funding surge.
Singular’s Insights: The venture capital funding landscape for late-stage startups has become increasingly bleak, with a noticeable scarcity of capital. The process of securing funding has become more prolonged and challenging, with higher criteria for successful deals. Consequently, some late-stage startups are succumbing to the financial pressure, leading them to fold and liquidate their prime assets amidst this cash crunch.
Meme of the Week
Important Disclaimers