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OpenAI, Other AI Firms Not Yet Ready for IPOs

Also: AI is being held up by a shortage of powerful chips

Welcome!

As the week starts, the tech landscape continues to see pivotal changes. From OpenAI and other AI startups navigating the path to IPOs, to the global challenge of chip shortages causing a bottleneck in AI advancements, there's much to keep tabs on. Elon Musk's acquisition of a prominent AI domain hints at his unwavering dedication to the field, while the medical realm grapples with integrating AI tools effectively. Not to mention, exciting tools emerge in the AI-chatbot space, and significant venture capital investments promise to push the boundaries of AI and biotech. Dive in to learn about these developments and more.

Sliced:

  • ๐Ÿ“ˆ OpenAI, Other AI Firms Not Yet Ready for IPOs

  • ๐ŸŸ AI is being held up by a shortage of powerful chips

  • ๐Ÿฆพ AI.com Now Belongs to Elon Musk

  • ๐Ÿฅ Study Warns That Doctors Are Not Prepared for AI Transformation of Medicine

The surge in interest surrounding AI startups like OpenAI, Anthropic, and Inflection has garnered significant attention, but these companies are not yet poised for initial public offerings (IPOs). Current market research indicates that tech companies best perform in IPOs after a decade of operation and after achieving $100 million in revenue. Although there's anticipation around which AI firms will go public, experts believe that many startups, especially those focusing on large language models (LLMs), will more likely be acquired by larger enterprises. The market now values profitability in conjunction with growth, and while there's a rush for companies to publicly list, many find value in venture capital backing during their developmental stages.

The global surge in AI demand has exposed severe limitations in the supply chain for powerful chips, specifically graphics processing units (GPUs), which are essential for training and deploying AI algorithms. This chip shortage has impacted both small and large businesses, with no significant improvements anticipated for at least a year. Microsoft's recent annual report underscores this challenge by identifying GPU availability as a potential risk for investors. The current shortfall is not due to disruptions in consumer GPU supply, but rather a sudden overwhelming demand for high-end GPUs suited for advanced AI tasks. Major chipmakers, such as Nvidia, which dominates 84% of the discrete GPU market, are feeling the pressure, while others like AMD are gearing up to respond to this demand. Further complicating the situation, GPU manufacturers are struggling to source key components from their suppliers. As a result, some companies are innovating and seeking more efficient ways to use limited computational resources.

Tech magnate Elon Musk has made another significant move in the tech world by acquiring the notable domain AI.com, which was previously in the possession of OpenAI, recognized for developing the widely-used ChatGPT. Now, when users access AI.com, they're redirected to X.ai, serving as the digital gateway for Musk's latest endeavor, xAI. Launched in 2023, xAI is not merely a venture to ride the wave of growing demand for generative AI; it carries a robust mission to rectify perceived gaps in current AI's mathematical reasoning capabilities. It's intriguing to note the history Musk shares with artificial intelligence. Having been one of the co-founders of OpenAI, his departure from its board in 2018 marked a significant event. Yet, Musk's passion for AI remains undeterred, with indications that he intends to intertwine these advancements with platforms like Twitter, further emphasizing his vision for a future steered by intelligent machines.

The integration of artificial intelligence (AI) tools, like clinical decision support (CDS) algorithms, into medical practice is revolutionizing patient care, aiding in diagnosis and treatment decisions. However, the effective use of these tools hinges on physicians' comprehension and application. A perspective article from the University of Maryland School of Medicine, published in the New England Journal of Medicine, suggests that many doctors lack the necessary skills to interpret and utilize AI tools. To bridge this gap, experts recommend incorporating probabilistic reasoning and algorithmic understanding into medical education and training. Further, the University of Maryland is launching the Institute for Health Computing to offer advanced training and leverage AI technologies in healthcare.

๐Ÿ› ๏ธ AI tools updates

Pinwheel, known for its child-safe smartphones, has introduced PinwheelGPT, an AI chat app for kids powered by ChatGPT with the unique feature of parental monitoring. This app, free to download, is aimed at children aged 7-12, and delivers age-appropriate responses while completely avoiding explicit content, links, or images. Additionally, it allows parents to review their child's chats, including deleted ones, to facilitate better understanding and guidance. As children's use of smartphones and interaction with AI chatbots is rapidly increasing, PinwheelGPT serves as a secure and educational tool to safely introduce them to the AI revolution.

๐Ÿ’ต Venture Capital updates

Kyoto University-affiliated VC firm, Miyako Capital, is setting up a fund aiming to amass around 20 billion yen ($141 million) to support deep-tech biology and AI startups. This fund, one of Japan's largest of its kind, plans to allocate investments ranging from 500 million yen to 1 billion yen per startup, with an even split between life sciences and AI/electronics ventures. Miyako will not only expand its team specializing in advanced tech evaluation but will also collaborate with other colleges for potential investment targets nationwide. Funding sources comprise two state-backed entities, Japan Investment Corp. and the Organization for Small and Medium Enterprises and Regional Innovation, Japan, as well as other investors like Japan Post Bank. Miyako's goal aligns with Japan's five-year plan to bolster its deep-tech sector, emphasizing collaborations between startups and major corporations.

๐Ÿซก Meme of the day

โญ๏ธ Generative AI image of the day