Michael Spencer’s Post

This is Brutal: OpenAI Has Already Killed 1,000 Startups – And It’s just a beginning! New additions like Canvas, Code Interpreter, Multimodal Support, and DALL-E 3 have wiped out businesses. I called this start ups as 'Wrapped Start Ups' not 'AI Start Ups'. 😁 Startups that jumped into AI without understanding the landscape? Left scrambling for survival. What went wrong? Many rushed into AI, hoping to cash in on the hype. They built on top of ChatGPT, thinking a layer above could set them apart. But they ignored the obvious: OpenAI was always going to develop these features themselves. From code debugging to image generation, entire business models became obsolete in months and some in days. What can we learn from this? 1)Don’t chase giants. Innovate where they aren’t. 2) Deep specialization matters. 3) Incremental tweaks won’t save you. 4) Timing is everything. 5) Know when to pivot and when to scale. If your business relies on wrapping someone else’s product, it’s a ticking time bomb. This isn’t just about AI—it’s about business survival. Build something that lasts beyond the giants, or prepare to be their next casualty. The future doesn’t belong to the fastest imitator. It belongs to the smartest innovator. Now, Who's Next?

Artificial intelligence plunged into the mainstream in 2023 with popular tools like ChatGPT and Dall-E, but 2024 so far has seen buzzy startups facing the stark realities of actually building AI: excessive energy demands, never-ending data dilemmas and expensive infrastructure. With investors plowing billions of dollars into AI startups, companies are now grappling with the most basic question: Can these tools make money?

OpenAI has launched GPT-4o, its new model that enhances ChatGPT's capabilities in text, voice, and vision, making advanced AI accessible to all. Features include real-time voice and video conversations, multi-language support, and a streamlined desktop app. Microsoft will invest 4 billion euros, the largest investment to date in France, in cloud and AI infrastructure, AI skilling, and French Tech acceleration. This initiative aims to train 1 million people and support 2,500 AI startups by 2027. Apple announces new features leveraging artificial intelligence for enhanced accessibility. Anthropic is expanding to Europe and raising more money. Claude, its AI assistant, is now live in Europe with support for multiple languages, including French, German, Italian, and Spanish across Claude.ai. This week, the following companies have raised funding: Optmycare, Altera, Artisan AI, LanceDB, PolyAI, Numra, Voxel51, Leya, WEKA, Malted AI, and Gamma from investors such as LiveOak Ventures, FirstSpark Capital Ventures, Patron Capital, CRV, Hedosophia, nVentures , Elkstone, Bessemer Venture Partners, Tru Arrow Partners, Drive Capital, Top Harvest Capital, Shasta Ventures, ID Ventures, Valor Equity Partners, Norwest Venture Partners, Micron Ventures, Qualcomm Ventures, Hitachi Ventures, Hoxton Ventures, Creator Fund, Accel, Script Capital, South Park Commons, Lorimer Ventures, and Fellows Fund. Interesting points from Tech and Interesting Reads: Unlock your creativity with these Top 25 must-try Midjourney AI art styles. AI spending grew 293% last year. Here's how companies are using AI to stay ahead. With OpenAI’s release of GPT-4o, is ChatGPT Plus still worth it? How The FA uses Google Cloud AI to identify future England football stars. For the full details on these stories and more, make sure to visit the AI Weekly Digest => https://lnkd.in/d6EdtH8F

There's only one way that this AI boom is heading! First, it was the 'EUPHORIA' : Lots of hype with ChatGPT Then came the 'BOOM': Several AI companies forming, $330B invested into AI in last 3 years. Now comes the 'PROFIT MAKING': Several unprofitable startups shutting down, folding into the Big tech And eventually this would lead to 'PANIC' : Funding winter, write off AI investments, only 3-4 Big tech companies remain strong. Yes, this is the classic Hype cycle of new technologies and we can literally see it at play in AI. #ai #datascience #llm #leadership #business https://lnkd.in/gNVS8ufG

Years before OpenAI’s ChatGPT showcased the power of generative artificial intelligence, venture capitalist Kai-Fu Lee foresaw AI's transformative impact on the job market. In 2017, Lee, Chairman of Sinovation Ventures, boldly predicted that AI would surpass all previous technological revolutions combined, including electricity and the internet. He emphasized that AI's capabilities exceed those of humans. “These are things that are superhuman, and we think this will be in every industry, will probably replace 50% of human jobs, create a huge amount of wealth for mankind, and wipe out poverty,” Lee told CNBC at the time, later forecasting that it would happen in the next 10 years. Learn more about this insightful forecast here: https://lnkd.in/eEzSUiPM

We've seen some exciting developments in the world of AI recently with Open AI releasing Chat-GPT 01 last month and now raising a $6.5bn round at a $150bn valuation. Some say we're not ready, the technology is 10 years away/over-hyped etc. For me it looks likely that AI Agents are going to revolutionise white collar industries in a big way, with huge cost reductions for clients, widespread access to faster services and improved compliance all likely outcomes. And the disruption could be coming sooner than we think... https://lnkd.in/e7e2cfhY

Here’s a summary of some of the biggest AI news you may have missed last week: 🤑 Anthropic, a leading AI startup, is reportedly in early discussions to raise new funding, targeting a valuation of up to $40 billion. https://lnkd.in/eevkZuFY 🙌 Meta Platforms is set to introduce a new feature that will bring celebrity voices to its AI chatbot including John Cena and others. https://lnkd.in/ev_zf7in 👋 The viral Goodbye Meta AI hoax on Instagram has ensnared over 600,000 users, including high-profile celebrities with fake privacy messages. https://lnkd.in/eJi_w-ve ⚖ The FTC has announced a major crackdown on companies misusing AI to deceive consumers, unveiling five law enforcement actions. https://lnkd.in/evQPRxbN Ready to stop reading the news and *become* the news instead? Join us at ODSC West this October 29th-31st and become the next big thing in AI. https://lnkd.in/gpPS-Dq #datascience #AI #artificialintelligence #AInews #ODSC