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The Microsoft/a16z AI Startup Manifesto! Microsoft and a16z team up to empower AI startups, advocating policies that support open-source innovation, data accessibility, fair competition, and flexible AI model choices. This collaboration aims to build a strong U.S. tech ecosystem, with government-backed AI investments and digital literacy programs to drive growth, innovation, and economic opportunity. What does the manifesto advocate? 1. Collaborative Approach: Microsoft and Andreessen Horowitz (a16z) aim to bridge “Big Tech” and “Little Tech” to foster innovation and AI policy collaboration. 2. AI’s Economic Potential: AI is seen as transformative, likened to innovations like electricity and the internet, with opportunities to solve complex issues and build a new economy. 3. Policy for Startups: Proposed policies encourage regulation that supports startups, ensures fair competition, promotes open-source AI, and maintains flexible model choices. 4. Open Data Commons: Microsoft and a16z advocate for accessible data pools to support AI development, managed for public benefit. 5. Right to Learn: They urge for copyright policies that ensure AI can learn from data freely, supporting innovation and knowledge growth. 6. Government Investment: Recommendations include government funding in AI, procurement practices to involve startups, and digital literacy and workforce training programs. 7. Unity for Innovation: The partnership emphasizes the potential for Big and Little Tech to jointly advance public policy, fostering a thriving U.S. tech ecosystem.

Good read from Microsoft and Andreessen Horowitz which shows how building a future around open-source is essential for a responsible, innovative AI ecosystem. The article highlights how open-source AI fuels innovation by giving startups and established companies equal access to advanced tools. Open-source isn’t just code; it’s a framework that bridges the gap between 'little tech' and 'big tech' to create a more inclusive and competitive ecosystem. With open-source AI, developers can adapt, improve, and secure models, accelerating progress while enhancing security through collective scrutiny. To fully realize its potential, we need to invest—through public funding, digital literacy programs, and open data access.

#Topics AI is finally resulting in real growth for Big Tech [ad_1] The breadth of demand is good news for startups everywhere Generative AI technologies are being suffused into a host of software applications aimed at businesses and consumers alike, and the financial results of all that investment are starting to show up. A close reading of Alphabet’s and Microsoft’s third-quarter results shows that new AI tech is helping some of the world’s biggest companies grow their revenues. Even better, these companies are seeing AI growing in areas that are broad enough to indicate strong market demand for software that runs off generative AI. That’s good news for the plethora of startups building in the fast-expanding space. The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. We’re going to cover a lot of positive news today, but the two companies’ reports yesterday engendered varying reactions from investors. Alphabet’s shares are down more than 8.5% this morning, while Microsoft’s stock is up nearly 4%. This morning, I want to quickly parse the two tech companies’ earnings through the cloud and AI lens, and then glean what I can from their post-results conferen...

Venture capitalists invested $3.9 billion in generative AI startups in Q3 2024, with $2.9 billion going to U.S.-based companies. Major funding rounds included Magic ($320M), Glean ($260M), Hebbia ($130M), and Sakana AI ($214M). While critics highlight concerns over reliability, legality, and high computational needs, investment in generative AI remains strong, with ElevenLabs seeking a $3B valuation. Forrester predicts 60% of AI skeptics will adopt the technology for tasks like summarization, despite Gartner’s forecast that 30% of AI projects will be abandoned by 2026. #GenerativeAI #TechInvestments #AIStartups #VentureCapital #AIInnovation #FutureOfTech #AIAdoption https://lnkd.in/gj-hegwd

Cohere, a generative AI startup co-founded by ex-Google researchers, has raised $500 million in new cash from investors including Cisco, AMD and Fujitsu. The round, which also had participation from Canadian pension investment manager PSP Investments and Canada’s export credit agency EDC, values Toronto-based Cohere at $5.5 billion, according to Bloomberg. That’s more than double the startup’s valuation from June 2023, when it secured $270 million from Inovia Capital and others, and brings Cohere’s total raised to $970 million. Josh Gartner, head of communications at Cohere, told TechCrunch that the financing sets Cohere up for “accelerated growth.” “[W]e continue to significantly expand our technical teams to build the next generations of accurate, data privacy-focused enterprise AI,” Gartner said in a statement. “Cohere is laser-focused on leading the AI industry beyond esoteric benchmarks to deliver real-world benefits in the daily workflows of global businesses across regions and languages.” Cohere was seeking to nab between $500 million and $1 billion for its next round of fundraising, and was in talks with Nvidia and Salesforce Ventures to raise the money, according to Reuters. Both Nvidia and Salesforce ended up contributing, Gartner confirmed in an email to TechCrunch. https://lnkd.in/dCDURJVs

Financial Times: "AI start-ups generate money faster than past hyped tech companies" https://lnkd.in/d7aXrXw9 "Organisations must continuously evolve and reinvent themselves in order to survive the future of the fast-changing business world. This is particularly challenging in the face of trends that come with the current technological revolution, in which organisations are expected to integrate the physical and virtual world within their business models. It comes as no surprise that artificial intelligence start-ups are now making revenues at a faster rate than past technology companies, as they utilise the opportunity to integrate AI into their business models from the outset. However, this comes with significant costs in computing the infrastructure to run and train AI, which can be particularly difficult for start-ups who often rely on angel investment to fund their early growth. It is important for these start-ups to receive legal advice tailored to their high growth journeys, particularly when managing excessive revenues and substantial compute costs far earlier in the company's life cycle than anticipated." Comment by Leah Velleman, Paralegal at Buckworths #startups #artificialintelligence #smallbusiness

📊 PitchBook's Q3 2024 report reveals that venture capitalists invested $3.9 billion in generative AI startups across 206 deals. 🏆 U.S.-based companies led the charge, securing $2.9 billion in 127 deals. Notable winners include Magic ($320M), Glean ($260M), and Hebbia ($130M). 🌍 Globally, Moonshot AI in China raised a significant $300 million in August, while Japan's Sakana AI received $214 million for advancements in scientific discovery. 💡 Despite concerns about reliability and legality, VCs see generative AI as a powerhouse for large industries and long-term growth. 🔍 Forrester predicts that skeptics will come to embrace generative AI for tasks like summarization and problem-solving. ⚠️ However, Gartner forecasts that 30% of generative AI projects might be abandoned after proof-of-concept by 2026. 💻 One key challenge ahead is the high computational demand, potentially driving up the need for data centers. https://lnkd.in/eXjRe92s

Microsoft and a16z join forces to foster a new era of AI innovation to bridge the need for public policies that empower startups, create opportunities, and keep the U.S. at the forefront of AI. From open-source AI to data commons, the message is clear: startups and big players can build a vibrant ecosystem together, driving competition, innovation, and a thriving AI economy. https://lnkd.in/g6G5-wBe

AI startups, often enveloped in technical jargon and ambitious claims, require a nuanced approach to evaluation. The key lies in understanding not just the business model but the specific AI technologies at play. For instance, distinguishing between startups that develop their own AI models (i.e. AI Developers) and those that apply existing algorithms to new problems (i.e. AI Operators) is crucial. This differentiation sheds light on the startup’s innovation level and its potential to contribute genuinely novel solutions to the market.

Microsoft: "AI for Startups" Artificial intelligence (AI) presents a historic opportunity for economic transformation, particularly in the U.S., as Big Tech and startups can work together to drive innovation and build a competitive ecosystem. Leaders from Microsoft and a16z underscore that through cooperative public policy, responsible AI development, and infrastructure investment, businesses of all sizes can access tools to solve complex problems, generate jobs, and foster growth. They advocate for regulatory frameworks that support diverse AI models, promote open-source development, create open data resources, and ensure equitable competition. Emphasizing digital literacy and workforce development, the proposal urges for policies that safeguard open access to data and encourage collaboration, strengthening the U.S. position in AI on the global stage. Read more here: https://lnkd.in/gz67k9XY #AI #Microsoft #Startup #Policy #Innovation #ArtificialIntelligence #Transformation #Framework