A.I. Startups to Watch, Part 3 in a Series
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
Hey Everyone,
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So the series of A.I. startups continues thanks to Tobias of the Gap . Tobias Jensen is an A.I. researcher, legal consultant and blockchain journalist. His last guest piece with us was recently in the AGI series : GPT-4's Sparking Intelligence .
The Gap - Writing about the intersection of business, law and tech with a focus on social issues. By TobiasMJ
The A.I. Startup Series (guest contributors)
There are so many incredible A.I. startups ((Unicorns) in the Generative A.I. environment of 2023 and many of them are very well funded. In this series we’ve covered some of the most GenAI native startups. More to explore at the bottom of this post. Who else do you want us to write about?
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By Tobias Jensen of The Gap - September, 2023. A guest post.
Introduction
The share of funding for AI startups in the US has doubled in 2023 (Crunchbase ). Among S&P companies, 177 (35%) cited the term “AI” in their Q2 2023 earnings calls? -? a new record from the previous quarter where the same number was 117 (24%). Interestingly enough, companies that cited AI in their earnings calls have seen a better average stock price performance (Factset ).
The market for AI is HOT this year, hotter than it has ever been. Today, we will look at six of the best-funded AI startups of 2023. Some of these companies may very well end up changing the trajectory of human civilization.
Note that this is the third contribution in a series of posts.
In the first post of the series , Charlie Guo from Artificial Ignorance covered OpenAI and its major competitors: Google DeepMind, Anthropic, Cohere, Stability A.I., EleutherAI, and Hugging Face.
In the second post of the series , Conrad Gray from H+ Weekly covered: Adept AI, Inflection AI, Runway, Aleph Alpha, AI21 Labs, and BAAI.
This week we will take a closer look at six more companies: Character.AI, Genesis Therapeutics, Imbue, ElevenLabs, Atomic AI, and Synthesia.
All of these companies have received large funding in 2023.
Whereas the previous authors in this series, Charlie Guo and Conrad Gray , have deep qualifications in AI and software/bioengineering respectively, I consider myself more of a generalist. A jack of all trades, master of none, if you may.
I have to point out the obvious: It's hard to overlook how most of the world's best-funded AI startups, including the six I will tell you more about in this post,? are based in California (typically the San Francisco-area), founded by caucasian males between the ages of 30-50 with degrees from top universities, and the companies are backed by a few dozens of recurring names such as Andreessen Horowitz, Greylock, and Nvidia .
I am by no means a keyboard warrior for social justice and far from a social scientist,? but the homogeneity here is striking. Almost all of the world's leading AI innovation and funding is centered around the Silicon Valley area, and the people with creative powers and deep pockets tend to overwhelmingly fit a certain stereotype. This pattern could signal that AI is being built, not only by, but also for, the richest 0.01% of the world's population. I touched on "technological inequality" in a Hackernoon post here . What do you think this homogeneity in AI funding and development means? Is the current AI wave going to richen the richest, or will it benefit all of humanity? Let me know in the comments.
Now, with that out of the way, let’s get back on topic and take a look at six mind-bendingly exciting startups.??
Character.AI
Mission in one sentence: Building the next generation of dialogue agents and bringing to life the science-fiction dream of open-ended conversations and collaborations with computers.
Website:
Funding in 2023: $150 million Lead investor(s): Andreessen Horowitz Founded: 2021 Primacy office location: California?
Charater.AI was founded by former Google engineers, Noam Shazeer, and Daniel De Freitas. As we can experience on the company’s website that went into public beta a year ago, the company has taken a different approach to personalized AI agents. Whereas Inflection.AI (read my deep dive on them here ) have developed the friendly, AI conversation partner HeyPi, and while other popular AI chatbots like OpenAI’s ChatGPT, Antrophic’s Claude 2, and Google’s Bard were designed more as information retrieval tool than as “AI friends”, Character.AI offers personal conversations with a wide range of different known and unknown, fictive, and non-fictive characters and celebrities. For instance, you can have a chat with Elon Musk, Jordan Peterson, Albert Einstein, Bella Poarch, Tony Soprano, a sex therapist, a lion, or Jesus Christ.?
Especially among young people, Character.AI has gained popularity, even catching up to ChatGPT in the US with 4.2 million monthly active users, whereas the corresponding number for ChatGPT is 6 million for ChatGPT's mobile apps.
?Elizabeth Minkel wrote an insightful article for Wired, “Sexy AI Chatbots Are Creating Thorny Issues for Fandom ” where she questions if generative chatbots will ever truly become a part of the broader “fandom world”. She also recalls a rather humorous encounter with Super Mario on the platform:
“When I met Mario, I invoked our shared Italian heritage, and wondered if he ever worried he was furthering old stereotypes. "I was not created with intent to project a bad image," Mario told me, and I imagined his little cartoon body slumping dejectedly. "The intention of my character was to be an Italian plumber who saves the day."
Chatting with your favorite characters and celebrity idols is good fun. However, it also imposes difficult questions in regards to the associated intellectual property rights to the many characters, the ethicalness of AI models posing as celebrities, and consideration about whether anthropomorphization of AI models (projection of human qualities onto non-human things) is healthy and appropriate for young minds.
At the end of the day, we are in fact not chatting with our favorite character or celebrity idol but with a fine-tuned language model. Although we will not get responses in the style "As an AI language model, I am unable to (..)", it does not take a lot of back-and-forth-bantering to realize this fact.? It will be interesting to follow how Character.AI fares over the next couple of years.
Genesis Therapeutics
Mission in one sentence: Pioneering generative and predictive AI technologies to develop and commercialize breakthrough treatments for patients suffering from severe and devastating conditions.
Website:
Funding in 2023: $200 million (+$24 million of SAFE notes from a prior financing round) Lead investor(s): Andreessen Horowitz and unnamed US-based life sciences investor Founded: 2019 Primacy office location: California
Genesis Therapeutics spun out from Stanford University in 2019 (C&EN ). The company’s young CEO, Evan Feinberg, worked as a graduate student with a specialty in deep learning for drug discovery in Vijay Pande’s research group: Pande Lab at Stanford University .?
Outside of being a professor of structural biology and computer science at Stanford, Vijay Pande is the founder and manager of Andreessen Horowitz's (a16z's) Bio and Health department. A16z led Genesis Therapeutics' Series A and B funding rounds which brought in respectively $52 million and $200 million.?
With the new funding, Genesis Therapeutics will further develop its AI platform GEMS (Genesis Exploration of Molecular Space) which was designed to accelerate and optimize small molecule drug discovery. According to the company’s website, GEMS is the world’s most advanced molecular AI platform. It integrates deep learning, molecular simulations, and language models to generate new molecules. The company's mission is to develop small drug molecules by using the power of AI technology, and then commercialize its breakthrough discoveries to treat patients suffering from severe health conditions.??
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Imbue
Mission in one sentence: Developing AI that can reason and code, imbuing computers with intelligence and human values so they can help us accomplish larger goals in the world.
Website:
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Funding in 2023: $200 million Lead investor(s): Astera Institute with participation from Nvidia Founded: 2020 Primacy office location: California
Imbue was founded in 2020 under the name “Generally Intelligent”. The company’s mission is in part implied in its new name: to imbue AI agents with reasoning capabilities, human values, and generally more intelligence. As of this September, the company announced its $200 million Series B funding that provides the company with a +$1 billion valuation and thereby unicorn status. Michael Spencer covered the company and its funding in depth here .
The company’s total amount of funding of $220 million, places it only slightly behind its competitor, Israeli-based AI21 Labs ($283 million), a company that works on machines' ability to understand and generate natural text, and still quite a bit behind its direct competitor Adept ($415 million), and the enterprise-focused generative AI company Cohere ($445 million) (TechCrunch ).? However, Imbue’s Series B funding is still remarkable, considering that the company only employs 20 people and its founders say that a product reveal could be years away. (Forbes ).
Beyond the remarkable amount of funding, Imbue is remarkable because it’s one of the very few woman-led unicorn companies in the AI/tech space with CEO and co-founder, Kanjun Qiu in the lead. Michael wrote in his deep-diving post: “Generative A.I. badly needs this feminine visionary vibe, as the ecosystem is full up on bro-culture vibes that eventually of course, go absolutely nowhere.”??
The problem we run into product-wise - speculatively - is that human reasoning abilities are often rooted in tacit knowledge that we have gained through experiencing the world. Computers, on the other hand, can only think in binaries. Even though this sort of 1 or 0/black or white way of thinking may have rubbed off on all of us, life is infinitely more complex and nuanced. Unless we can explain in language to computers how humans think (which we cannot understand or explain by a long shot), there may be hard limits on how well-reasoning, collaborative, and human-like AI agents can be. But we will see.
ElevenLabs
Mission in one sentence: Voice AI research & deployment company with a mission to make content universally accessible in any language & voice.
Website:
Funding in 2023: $19 million Lead investor(s): Nat Friedman and Daniel Gross alongside Andreessen Horowitz Founded: 2022 Primacy office location: New York City
ElevenLabs was founded in 2022 by Piotr Dabkowski, a former Google engineer, and Mati Staniszewski, a former strategist at Palantir (large software company that offers tools for big data analytics).? The inspiration for ElevenLabs allegedly came from the founders' shared childhood memories in Poland where they grew up watching Hollywood blockbusters in poorly dubbed Polish. Now, their AI voice startup has raised $19 million in Series A funding after launching just last year. The business foundation is to bring audio support to creators and companies in various industries such as education, streaming, audiobooks, gaming, and movies.
ElevenLabs offers a browser-based AI tool called Speech Synthesis that can generate synthetic speech from text in hundreds of different voices and currently 28 languages. It can be tried out for free via their website.?
ElevenLabs also offers an instant voice cloning feature that came under the limelight in January after Motherboard uncovered how users from the anonymous internet community 4chan had generated deepfake voices of celebrities like Joe Rogan, Ben Shapiro, and Emma Watson uttering sexual, violent, and racist things. At the even more extreme end, voice cloning technology has been used to carry out horrifying imposter scams where close relatives have been tricked into transferring large sums of money in response to a deepfake emergency call from a loved one.
There has been a lot of public attention surrounding these issues. ElevenLabs claims that they can trace back any generated audio to a specific user. The team has also restricted professional voice cloning to paid accounts, and they now offer a free, public AI Speech Classifier that can detect whether an audio clip was created via their service.
In the spirit of the founders' original vision, ElevenLabs is currently working on a tool that enables any video to be dubbed into any language, while maintaining the original speaker's voice (TechCrunch ). The feature is planned to launch later this year. But to quote Rocky, the world ain’t all sunshine and rainbows. Voice actors are increasingly asked to sign the rights to their voices away when they enter into contracts with new clients. And they are not happy about it. Here is a quote from game and animation voice actor, SungWon Cho, from an interview with Vice :
“It's disrespectful to the craft to suggest that generating a performance is equivalent to a real human being's performance. Sure, you can get it to sound tonally like a voice, and maybe even make it sound like it's capturing an emotion, but at the end of the day, it is still going to ring hollow and false. Going down this road runs the risk of people thinking that voice-over can be replaced entirely by AI, which really makes my stomach turn.”
Articles in the AGI Series:
Atomic AI
Mission in one sentence: Wants to unleash the power of artificial intelligence on molecular structure to engineer RNA biology, creating medicines that can tackle diseases that were previously untreatable.
?Website:
Funding in 2023: $35 million Lead investor(s): Playground Global Founded: 2021 Primacy office location: California
Atomic AI launched at the beginning of 2023 with a Series A funding of $35 million. Among a longer line of investors, which included Greylock and AME Cloud Ventures, Not Boring Capital participated in the round. Not Boring is headed by the successful tech writer Packy McCormick and they published an interesting deep dive on their investment here .
Atomic AI is competing with other AI biotech companies, notably Genetics Therapeutics, to create smaller molecules against “undruggable diseases”. Specifically, Atomic AI is using deep learning to predict the structure of RNA molecules, locate druggable targets, and eventually design new RNA-based therapeutics that could potentially treat previously untreatable diseases.
Just like Genesis Therapeutic, Atomic AI is headed by a young graduate from Stanford University, Rapha?l Townshend. He was featured in Forbes’ 30 under 30 for Science in 2023 and has contributed to the front cover of Science Magazine with his work Geometric deep learning of RNA structure . Townshend has a mixed academic background in electrical engineering and computer science but found his calling in structural biology during a rotation between departments as a part of his Ph.D. program at Stanford.
AIs looming potential to revolutionize and transform the field of biology had its breakthrough moment in 2020 with Google DeepMind’s model AlphaFold which drew headlines all over the world with its ability to accurately predict 3D structures of proteins. During this time, Townshend was taking an internship at DeepMind's office in London. He noticed one weakness in DeepMind's approach. DeepMind's AI experts had little training in biology and relied on external labs to obtain their data.? This slowed down processes and increased overhead
With Atomic AI, Townshend is placing machine learning engineers in the same room as structural biologists, bringing together the "wet lab" and the "dry lab", to take the company's state-of-the-art deep learning model for RNA structure prediction to the next level. Atomic AI's revenue stream will primarily consist of royalties, upfront-, and milestone payments from partnerships with big pharma companies that can help them to bring their new discoveries to the market.?
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Further reading:
Synthesia
Mission in one sentence: Radically change the process of content creation and unleash human creativity by empowering everyone to make video content by using AI - without cameras, microphones, or studios.
Website:
Funding in 2023: $90 million Lead investor(s): Accel and Nvidia-owned NVentures. Founded: 2017 Primacy office location: London
The London-based Synthesia gained unicorn status after it closed a Series C funding of $90 million in June. The company was founded by a team of AI researchers and entrepreneurs from University College London, Technical University of Munich, Stanford University, and Cambridge University.
If you, like me, coincidentally have stumbled past this young woman on YouTube, you already know what their core product is:
Synthesia specializes in creating synthetic media. Whereas ElevenLabs focuses on AI audio, Synthesia focuses on video production based on text and voice recordings that can create virtual avatars with authentic voices. Synthesia’s solution is used by companies to create videos for sales training, technical training, customer service, or marketing.
According to the product tour on the company's website with a 1:45 duration, it simply works like this: You choose a background and an avatar from their wide catalogue, type in text in one of the 120 supported languages, choose a narration style or a local accent, then edit the video’s background with colors and/or company logo, and add a soundtrack if you choose to. And voilà, you have just created a synthetic presentation video without a studio, camera, or microphone.
The company gained a fair amount of publicity for the first time in 2019 with a UK public health campaign called 'Malaria Must Die' where Synthesia made David Beckham speak nine different languages:
?AI-generated text and image output can many times pass as human-made. Music is also getting there. But deepfake videos that last for more than a few seconds can in my experience easily be distinguished as non-human. Synthesia is one of the companies that could potentially change this in the not-too-distant future.
Wrapping up
Here you have it, six of the best-funded AI startups of 2023.? Some of them are competing with one another, but they each have unique targets and approaches, and a common potential to deeply disrupt various sectors of the economy. There are many more interesting AI startups to learn about, hundreds of more, but Character.AI, Genesis Therapeutics, Imbue, ElevenLabs, Atomic AI, and Synthesia are definitely worth paying attention to.??
Special Mention
Go deeper taking a look at these well funded A.I. startups:
AI Startup Series:
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Hey Everyone, welcome back. There is a new writer on Substack with a considerable background in Venture Capital with a unique perspective, his name is Charlie Guo and he is the writer of the Newsletter Artificial Ignorance. One of my new go-to Newsletters
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Six more companies competing with OpenAI
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Hey Everyone, One of my most popular guest posts to date covered OpenAI’s main competitors, this time around I asked very talented software developer Conrad Gray to help me cover many others. I spotted Conrad’s work on Substack and immediately realized he’d be the perfect person to tell their story. Check out his Newsletter:
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Thought Leader @ Wiser! | Self-Published Author, Emerging Technologies
1 年Great newsletter Michael, character.ai is an interesting platform that's quietly building a pretty big following below the headlines
Product Manager,
1 年Amazing thank you
A giver and proven Tech Entrepreneur, NED, Polymath, AI, GPT, ML, Digital Healthcare, Circular Economy, community wealth building and vertical food & energy hubs.
1 年Good piece Michael Spencer . smartR AI is going to be a name some day soon
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
1 年A 14-min read, this guest post was made possible by A.I. Supremacy: https://aisupremacy.substack.com/