Bloomberg News reports that Inflection AI, a startup, is enjoying the support of several heavyweights in Silicon Valley. On Thursday, it said that it raised $1.3 billion from the investors. It also includes Nvidia and Microsoft, among others, amidst a boom in the artificial intelligence sector.
Fundraising for Inflection AI
The investment is a mix of cloud credit and cash. The new startup has been valued at $4 billion despite being just one year old, as stated by people familiar with the issue.
Inflection launched the chatbot Pi last month. It has been set up by the Google DeepMind co-founder Mustafa Suleyman and the co-founder of LinkedIn Reid Hoffman. The main objective of developing the application is to be consumer-centric and a competitor of OpenAI.
More about Pi
Pi usually uses artificial intelligence technology, the same as ChatGPT, for interacting with users. It uses dialogues to do so, letting people ask questions and give feedback. Inflection expresses the desire to develop a personal AI to help people plan for scheduling and gathering information aside from performing tasks.
Inflection AI has its headquarters in Palo Alto, California. It has about 35 employees. This company managed to raise as much as $225 million in the first round of funding in 2022 from Reid Hoffman, Greylock, and Microsoft.
Bloomberg News reports that in the past week, the company released a report related to model inflection one, which is responsible for powering Pi. The company has claimed that it has managed to outperform most of the available models.
The fund that has been raised will be used mainly for building computing power for developing a more powerful foundation model. It has been stated by Suleyman, the chief executive at Inflection.
The AI space is usually hailed as the next big thing in technology just after OpenAI’s bot ChatGPT. Not to mention, the latter has promptly became an overnight sensation last year.
The new AI industry has attracted several investors in the last few months. The corporates start examining various ways to integrate the technology into existing businesses. However, the regulators have been pondering over taming and tackling the technology.
Microsoft, an existing investor and backer of competitor OpenAI took part in the latest fundraising of Inflection.
Nvidia was found stepping up the AI investments of late. Hoffman, Bill Gates, and the former chief executive officer Eric Schmidt also took part in the latest fundraising round.
