How ChatGPT sparked the “gold rush” in Silicon Valley

How ChatGPT triggered the

ChatGPT has become one of the fastest growing apps of all time.

San Francisco:

ChatGPT, Silicon Valley’s latest app sensation, has investors racing to find the next big thing in generative AI, the technology some are hailing as the start of a new era in big tech.

Artificial intelligence (AI) has been increasingly present in everyday life for decades, but the November launch of the conversational robot of the start-up OpenAI marked a turning point in its perception by the general public and Investors.

“From time to time we have platforms that come up and cause new businesses to explode. We’ve seen it with the internet and mobile, and AI could be the next platform.” said Shernaz Daver of California-based Khosla Ventures.

Generative AI, of which ChatGPT is an example, scours oceans of data to create original content – ​​an image, a poem, a thousand-word essay – in seconds and on demand.

Since its quiet release in late November, ChatGPT has become one of the fastest growing apps of all time and has caused Microsoft and Google to rush into projects that have until now been carefully guarded over fears that the technology is not yet ready for the public.

“Just five days after its release, one million people have used ChatGPT – about 60 times faster than it took Facebook to reach one million users,” said SignalFire partner Wayne Hu, a another venture capital firm.

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

The explosion of generative AI comes at an otherwise bleak time for the tech industry, with tens of thousands of layoffs cascading across the world’s largest companies as well as smaller ones struggling to survive.

“While other categories are facing shrinking valuations and raising capital, generative AI companies are not,” Daver said.

Hu said stock valuations for generative AI companies have soared, while they have contracted for everything else.

– “Hard to follow” –

OpenAI, the creator of ChatGPT, is valued by Microsoft at nearly $30 billion although it is still burning money at high speed, he said.

Generative AI entrepreneurs say they no longer need to shout for attention when looking for money or going through the details of what they’re trying to offer.

“It helped us a lot,” said Sarah Nagy, founder of Seek AI, a startup that enables non-specialists to extract technical data from a database using plain language queries. .

“Before ChatGPT…I had to explain what generative AI is and why it’s important,” she added.

Now, the appetite for ChatGPT-like features is seemingly limitless, and not just from investors.

“Customer demand has increased a lot,” Nagy said. “It’s even hard to keep up, because we’re still a small company.”

The entrepreneur wants to grow his team and, according to Daver, while the trend is towards downsizing, “we’re hiring right now” in generative AI.

In recent weeks, it is mainly the giants who have hit the headlines, first Microsoft, partner and investor of OpenAI, followed by Google, which tries to follow.

But in their shadow, a host of start-ups also offer ideas.

Other recent examples of funding rounds include California-based Kognitos, which aims to automate administrative tasks, and designer platform Poly, which can create 3D charts or maps in seconds.

In addition to the usual venture capitalists, tech giants are on the lookout, such as Google, which has just invested $300 million to acquire 10% of newcomer Anthropic and its chatbot Claude.

Hu said ChatGPT’s “gold rush” could be unprecedented and extend far beyond generative AI, as the technology itself minimizes the need for a coder or designer. computing to execute ideas.

“You don’t have to get a Stanford PhD in computer science anymore: any developer can build something amazing on top of ChatGPT and other basic models in a weekend.”

“This wave of AI could be bigger than mobile or cloud, and more on the scale of something like the industrial revolution that changed the course of human history,” Hu said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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