AI Boom Benefits Software Providers, CEO Advocates for Open-Source AI and more

Pivot 5: 5 stories. 5 minutes a day. 5 days a week.

1. AI Boom to Propel Software Providers as Next Beneficiaries, Predicts Cathie Wood

Cathie Wood, CEO and founder of Ark Invest, predicts that software providers will be the next significant beneficiaries of the artificial intelligence (AI) boom, following Nvidia's success that led to its valuation surpassing $1 trillion.

In a Bloomberg TV interview, Wood explained that Ark Invest was shifting focus towards software as a service (SaaS) providers, expecting them to generate $8 in revenue for every $1 of hardware Nvidia sells. She highlighted companies such as Teladoc Health, Twilio, and UiPath as potential players in this regard. Wood also discussed Tesla's AI potential, suggesting that it's more than an automobile stock and predicting a surge in the company's value to $2,000 per share by 2027, driven by autonomous taxi platforms.

Furthermore, Wood defended Ark's decision to offload its stake in Nvidia, stating it was "priced ahead of the curve."

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2. Stability AI CEO Urges U.S. Lawmakers to Keep AI Open Source and Outlines Safeguard Steps

Stability AI CEO Emad Mostaque has penned a letter to the Senate Judiciary Subcommittee on Privacy, Technology, and the Law, encouraging them to uphold openness in AI as they consider future oversight.

Mostaque argues that open source models and datasets will enhance AI safety, competition, and U.S. strategic leadership in AI. He suggested five oversight steps: first, require cloud providers to report the use of their services for large-scale AI model training; second, provide operational and information security guidelines to organizations developing high-risk AI models; third, mandate app developers to disclose and seek consent for data collection for AI training; fourth, establish content authenticity standards to counter misinformation online; and fifth, increase U.S. investments in AI model evaluation frameworks, public compute and test bed resources, and a public foundation model.

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3. Reddit's API Fee Hike Threatens Third-Party Apps: Is AI the Reason?

Reddit is facing accusations of pricing out third-party apps by significantly raising fees for accessing its API, echoing similar moves by Twitter.

Christian Selig, developer of Apollo, a popular third-party Reddit client, stated that under Reddit's new fee system, his app's 7 billion API requests last month would cost $1.7 million, equating to over $20 million per year. Despite Reddit's communication and civility throughout this process, the firm is not willing to alter its API pricing. Social networks like Reddit and Twitter are reportedly increasing their API access costs to monetize AI, as numerous AI language models have been trained on data obtained cheaply from such platforms. However, this blanket increase is also affecting third-party developers who contribute significant traffic to these social networks.

Reddit CEO Steve Huffman has previously commented on the value of Reddit's data corpus.

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4. Hyro Raises $20M to Advance its AI-Powered Communication Tools for Enterprises

Hyro, an adaptive communications firm specializing in AI assistants for enterprises, has raised $20 million in a Series B funding round led by Macquarie Capital.

The funds will be used to grow the team, enhance offerings for AI-driven call centers, websites, and mobile applications, and expand strategic partnerships across key industries. Founded in 2018, Hyro's platform enables companies to layer conversational AI assistants onto their existing workflows. Hyro's solution scrapes unstructured and structured data and maps it to a knowledge graph, which is then used to generate a conversational AI assistant. Hyro claims to deliver these assistants in just three days. The assistants can automate tasks such as patient registration and scheduling, among others.

Hyro plans to use this funding to further refine its platform and expand into regulated industries such as insurance.

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5. Survey Reveals Preference for AI Tutoring: Students and Parents Favor ChatGPT Over Human Tutors

A new survey by Intelligent.com reveals that both students and parents prefer ChatGPT, an AI-powered learning platform, over traditional human tutors.

85% of high school and college students, who have used both traditional tutoring and ChatGPT, find the latter more effective. Parents echo this sentiment, with 96% acknowledging the superior results produced by ChatGPT for their children. As a result, 39% of students and 30% of parents have fully replaced traditional tutoring with ChatGPT. Despite its increasing popularity, experts suggest that AI tutoring may not entirely replace human tutors in the near future due to the unique insights and tailored guidance that human tutors can provide.

Nevertheless, the integration of ChatGPT into study routines has reportedly led to academic grade improvements for 95% of student and parent respondents.

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