ChatGPT: AI-Driven ‘Gold Rush’ in Silicon Valley

OpenAI’s release of a conversational robot in November has sparked a change in how people understand AI, which has been used daily. Khosla Ventures’ Shernaz Daver – based in California – suggested this may mean an uptick in AI investment.

Khosla Venture says:

“Every so often we have platforms that come along and result in an explosion of new companies. We saw this with the internet and mobile, and AI could be the next platform.”

ChatGPT is an example of Generative AI that rapidly creates new content previously unavailable, such as images, poems, and lengthy essays. All needed is a simple request- it can traverse the sea of data and produce content immediately.

In late November, ChatGPT saw a swift rise as one of the quickest developing apps ever, compelling Microsoft and Google to abruptly launch projects locked under custodianship for worries specified for the apprehension that its unready technology wouldn’t be suitable for public use.

Hu released a statement from SignalFire – his venture capital firm – noting the investment surge in the commercial software business.

Wayne Hu says:

“Just five days after its release, a million people used ChatGPT – about 60 times faster than it took Facebook to reach one million users.”

“Suddenly investors are all talking about how ChatGPT might eliminate millions of knowledge worker jobs, disrupt trillion-dollar industries, and fundamentally change the way we learn, consume, and make decisions.”

Despite the tech sector experiencing tens of thousands of layoffs and struggling businesses, an explosion of generative AI has offered a glimmer of hope at this rough time.

Daver says:

“While other categories are facing a contraction in valuations and raising capital, generative AI companies are not.”

Valuations of companies using generative AI have been very high compared to others – a contrast to the overall contracting trend seen in most sectors.

OpenAI, valued by Microsoft at an astonishing $30 billion, has found its development outpacing the money flow. Despite burning through funds quickly, the ChatGPT creator is still highly regarded.

Generative AI entrepreneurs no longer need to “scream” or offer in-depth details in pursuit of capital. Instead, they are simply demonstrating the capabilities of their craft to generate interest and solicit investments.

Sarah Nagy says:

“It’s helped us a lot.”

Seek AI, which Sarah Nagy founded, is a startup that enables people with no technical background to retrieve data from a database simply by making inquiries in everyday language.

Sarah Nagy went on to say:

“Before ChatGPT… I had to explain what generative AI is, and why it matters.”

As investors have a voracious appetite for ChatGPT-like offerings, so do people from other areas. There seems to be no end to their yearning for such features.

Nagy continues to say:

“The demand from customers has increased a lot.”

“It’s even hard to keep up, because we’re still a small company.”

Daver underlines that the trend may call for downsizing, but this is not stopping the entrepreneur from growing their team. They are looking to hire in their generative AI space actively.

Microsoft, Ope, and others; news in the last few weeks – Recently, Microsoft and Ope have dominated the news alongside other major players. Numerous stories linked to the above giants have appeared over the past few weeks.

ChatGPT has sparked an AI “gold rush” in Silicon Valley, where the race to develop cutting-edge artificial intelligence technologies is heating up. As one of the world’s largest and most sophisticated language models, ChatGPT has demonstrated the tremendous potential of AI for a wide range of applications, from natural language processing and chatbot development to predictive analytics and personalized recommendations.

This surge in AI innovation has attracted significant investment and talent to Silicon Valley as companies and startups strive to stay ahead of the curve and create the next breakthrough in AI technology. As the field continues to evolve and mature, we can expect to see even more exciting developments and new applications of AI in the years to come.

Source: economictimes.indiatimes

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