OpenAI on track to reach $1bn in revenue

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1. OpenAI on track to reach $1bn in revenue

OpenAI, the startup behind the chatbot sensation ChatGPT, is on a financial upswing, generating around $80 million a month and on track to exceed $1 billion in annual revenue. This rapid growth has surpassed previous estimates, which had projected the company reaching the billion-dollar milestone by 2024. Last year, before monetizing ChatGPT, OpenAI's annual revenue was a mere $28 million.

The chatbot's success isn't just limited to individual users; OpenAI has launched an enterprise version of ChatGPT this week. Early adopters include notable names like Canva, Estée Lauder, and PwC. The enterprise model comes with enhanced security and privacy features, making it a lucrative option for businesses. OpenAI stated that ChatGPT has been adopted by over 80% of Fortune 500 companies, signaling its widespread corporate appeal.

However, it's not all smooth sailing for OpenAI. The company's losses doubled to around $540 million in 2022 as it developed ChatGPT. Additionally, a deal with Microsoft entitles the tech giant to 75% of OpenAI's profits until its $13 billion investment in the startup is repaid. This arrangement could slow down OpenAI's journey to profitability, even as it continues to invest in ambitious projects like artificial general intelligence, which is expected to cost another $100 billion.

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2. Google's Duet AI can write your emails for you

Google has unveiled Duet AI, an AI-powered assistant designed to streamline the email drafting process for Gmail users. Announced at Google Cloud Next '23, the feature is now generally available for Workspace users. Duet AI enhances Gmail's existing smart reply feature, allowing users to draft longer, more personalized emails with a simple tap.

The cornerstone of Duet AI is the "Help me write" button, accessible on both web and mobile interfaces. This feature offers a variety of writing assistance options, from drafting emails in the user's own words to providing contextually relevant replies based on previous email threads. It's not just about quick replies; Duet AI delves deep into the context to offer meaningful and relevant responses.

But the feature doesn't stop at drafting emails. Users can also adjust the tone of their emails, making them either more formal or more detailed. Additionally, a similar "Help me write" feature is set to come to Google Docs, offering functionalities like tone adjustment and text summarization. With Duet AI, Google aims to redefine how we interact with our digital workspaces, making them more efficient and personalized.

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3. AI21 lLabs hits $1.4 Billion valuation after Series C funding

AI21 Labs, a Tel Aviv-based startup specializing in text-generating AI tools, has secured $155 million in a Series C funding round led by Walden Catalyst, Pitango, and other investors. This latest tranche brings the company's total funding to $283 million and elevates its valuation to $1.4 billion. Co-CEO Yoav Shoham revealed that the funding would accelerate the company's R&D efforts and help in adding more employees.

The startup's flagship product, AI21 Studio, is a pay-as-you-go developer platform designed for building custom text-based business applications. It leverages AI21's proprietary text-generating AI models, including its advanced Jurassic-2 model. Another offering, Wordtune, serves as a multilingual reading and writing AI assistant, akin to Grammarly. These products position AI21 Labs in direct competition with tech giants like Google, AWS, and Microsoft, who offer similar tooling.

Despite the stiff competition and a lower R&D budget compared to rivals, Shoham asserts that AI21 Labs' solutions offer "more refined control" and are developed on "some of the world's largest and most sophisticated large language models." The company plans to use the latest funding to expand its 200-person headcount, focusing primarily on roles in research and business development. With several Fortune 100 companies among its clientele and over 10 million users for Wordtune alone, AI21 Labs is carving out a significant niche in the generative AI space.

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4. Sprig unveils AI-Powered analysis for In-App surveys

Sprig, a startup specializing in smart, contextually aware in-app surveys for enterprises, has rolled out a new feature named "AI Analysis for Surveys." This feature leverages generative AI large language models to sift through survey data and offer immediate insights. The AI can analyze both qualitative data like open-ended text entries and quantitative data, providing a comprehensive view of survey results.

The company's CEO, Ryan Glasgow, stated that the AI could answer any custom questions about the survey data, analyzing responses across all survey questions to find the most relevant answer. This feature aims to transform survey data into a conversational AI product, allowing survey owners to ask any conceivable question and receive data-backed answers. Sprig has already attracted large enterprise customers, including PayPal, Figma, Ramp, Peloton, and Mixpanel, signaling its growing influence in the market.

Sprig's new feature addresses a common pain point for product teams looking to deeply understand and optimize specific parts of their product experience. The AI Analysis for Surveys feature allows product teams to review AI-generated survey summaries for top takeaways without manual analysis. It also suggests new analysis questions based on the survey results, helping teams to uncover less obvious trends and improve their products more efficiently.

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5. Baidu provides new dawn for Generative AI in China

Baidu has officially released its generative AI product, ERNIE Bot, to the general public, marking a significant milestone in the realm of artificial intelligence. Available through various app stores and its website, ERNIE Bot is primarily targeted at the Chinese market. The bot is designed to showcase the four core abilities of generative AI: understanding, generation, reasoning, and memory.

According to Baidu's CEO Robin Li, opening ERNIE Bot to the public is a strategic move to gather valuable human feedback. This feedback loop is expected to accelerate the bot's iterative development and enhance the overall user experience. ERNIE Bot is not just a chatbot; it possesses multifaceted capabilities such as summarizing text, generating images and videos, and even conducting data analysis.

In a regulatory context, Baidu's public release of ERNIE Bot aligns with new Chinese policies that require companies to obtain official approval before launching generative AI experiences. Baidu was among the first to secure this approval, indicating the Chinese government's cautious yet supportive stance on the transformative technology. The move sets a precedent for other AI ventures in China, balancing innovation with regulatory compliance.

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