Salesforce launches AI Cloud to bring models to the enterprise

Hey there,

The world of artificial intelligence (AI) continues to evolve at a rapid pace. This edition of our AI Newsletter covers key developments, including Salesforce's foray into enterprise AI with its product suite, AI Cloud. In regulatory news, UN's AI watchdog calls for a global AI framework to ensure AI's ethical usage. Additionally, we examine the revenue comparison of generative AI and tech giants like Apple, providing an insightful perspective on the industry's future growth. Finally, we take a look at Chegg's strategic shift towards AI and automation.

Slicing today:

• ☁️ Salesforce launches AI Cloud to bring models to the enterprise

• 🌎 UN chief backs idea of global AI watchdog similar to nuclear agency

• 📱 AI's high growth no match for iPhone

• 👩🏻‍🏫 Chegg Cuts 4% Of Workforce Following Shift to Embrace AI

☁️ Salesforce launches AI Cloud to bring models to the enterprise

Salesforce is launching a new product suite, AI Cloud, to strengthen its foothold in the AI space. The AI Cloud offers enterprise-grade AI tools and hosts AI models, such as text-generating models, from various partners, including Amazon Web Services, Anthropic, Cohere, and OpenAI. It also supports first-party models from Salesforce's AI research division and allows customers to use their custom-trained models while storing data on their infrastructure. The AI Cloud includes nine models, each offering distinct capabilities such as auto-crafting personalized emails, creating service briefings, generating audience segments for marketing, and providing recommendations for commerce. Salesforce is also launching the Einstein Trust Layer, an AI moderation and redaction service designed to prevent text-generating models from retaining sensitive data. The AI Cloud, which aims to reduce the time and cost to adapt a generative AI model to specific use cases, will launch later this year with the Einstein Trust Layer becoming available this month.

🌎 UN chief backs idea of global AI watchdog similar to nuclear agency

The United Nations' chief artificial intelligence (AI) watchdog, former Microsoft executive Michael Chui, has warned that AI could exacerbate inequality and lead to mass unemployment if not properly regulated. He called for a global framework to ensure that AI is used for good and not for harm. Chui's comments come as AI technology is rapidly developing and being adopted by businesses and governments around the world. There is growing concern that AI could lead to job losses, as machines become capable of doing tasks that are currently done by humans. Chui said that it is important to start thinking about how to mitigate these risks now, before it is too late. He called for a global framework that would set standards for the development and use of AI. This framework should include measures to ensure that AI is used in a way that is fair, transparent, and accountable.

📱 AI's high growth no match for iPhone

Despite the forecasted explosive growth of generative AI in the coming years, the revenue it generates is expected to be dwarfed by that from existing services and hardware of Big Tech companies, according to an S&P Global report. While five years after the launch of smartphones, the global market revenue was around $330 billion, the total predicted market for all generative AI five years from now is much less. For instance, Apple's iPhone alone brought in more than double this predicted market value for generative AI. Furthermore, generative AI companies are likely to operate in less lucrative B2B markets, while consumer-facing companies leverage AI to boost profits. However, the transformative impact of generative AI on productivity and creativity in businesses should not be discounted. Any generative AI startup that can secure 15% of the predicted market could hit $1 billion in revenue within its first five years. Foundation models are anticipated to be the primary income source for generative AI providers, outpacing text generators.

👩🏻‍🏫 Chegg Cuts 4% Of Workforce Following Shift to Embrace AI

Chegg, an online education company, announced on Wednesday that it would be laying off 4% of its workforce, or about 300 employees. The company said the layoffs were necessary to "accelerate our shift to embrace AI and automation." Chegg CEO Dan Rosensweig said in a statement that the company is "making this difficult decision to ensure that we are best positioned for long-term success." The layoffs come as Chegg faces increasing competition from other online education providers, such as Coursera and Udemy. Chegg's stock price has fallen by more than 50% in the past year.

💵 Venture Capital updates

Salesforce pledges to invest $500M in generative AI startups

Salesforce announced that it is growing its Generative AI Fund from $250 million to $500 million. The fund will invest in startups developing "responsible generative AI". Salesforce is also investing in generative AI technologies internally, piloting tools like EinsteinGPT and SlackGPT. The company has previewed the ability to create landing pages, compose sales emails, and write code in Apex, Salesforce's programming language, using generative AI.

Market map: Investors bet on the chips powering AI and machine learning

In Q4 2022, venture capitalists invested $14.6 billion in AI and machine learning startups, a minor 4.9% decrease from the previous quarter. The total deal value for 2022 was $78 billion, a decrease of 13.2% from 2021. The largest startups will struggle to justify their valuations as growth slows, and VCs are investing in startups that are focused on enterprise applications, fintech, and healthcare.

Accel targets AI adopters and builders in India, SEA

Accel, a venture capital firm, is targeting AI adopters and builders in India and Southeast Asia. The firm believes that there is a need for more AI builders in these regions, as well as localized AI solutions. Accel has already made more than 20 investments through its Atoms program, and these startups have raised over US$160 million in follow-on rounds. The firm is also putting a focus on Industry 5.0, which refers to companies in the manufacturing and industrial segments.

🫡 Meme of the day

⭐️ Midjourney prompt of the day

Before you go, have a look at how the son of manga legend Osamu Tezuka is using AI (and human creators) to continue Tezuka's classic manga Black Jack