AI giants lose market value

Top News

• Nvidia drops in market value: Yesterday, Nvidia took a hit in the stock market, dropping 9.5% after posting a quarterly forecast that didn't meet investors' expectations. That’s a loss of $279 billion in market capitalization. But Nvidia wasn’t the only one affected. The PHLX (Philadelphia SE Semiconductor Index) fell 7.75%, while Intel dropped nearly 9%. Given the substantial capital invested in tech and semiconductors over the past year, is this a sign that AI investments are starting to outpace revenue growth?

• OpenAI’s search engine needs work: OpenAI's initial prototype of SearchGPT was released to a select group of users. The platform uses AI to summarize information from various websites, providing concise answers with clearly marked sources. As the user feedback rolled in, it became clear that much work was needed to compete with the likes of Google. While some users reported positive results in areas like event planning and coding assistance, others reported false or even “hallucinated” information. Given OpenAI's track record with ChatGPT, we should still keep an eye on future versions and updates to its search engine.

• Newly founded startup raises $1 billion: Speaking of OpenAI, their former Chief Scientist Ilya Sutskeve recently cofounded Safe Superintelligence (SSI), which has already raised $1 billion with top firms like Andreessen Horowitz, Sequoia Capital, DST Global, and SV Angel getting involved. While the company wouldn’t divulge its valuation, sources have been floating around a $5 billion valuation. It goes to show that, despite the recent drop in stock from AI heavyweights, investors are still willing to back exceptional founders with stellar resumes.

Anthropic’s Enterprise Solution

It seems like Anthropic just can’t stay out of the news cycle. Earlier today, reports came out of Anthopric’s Claude Enterprise platform. This allows companies to input proprietary information to Anthropic’s AI chatbot, also making it a direct competitor with OpenAI’s ChatGPT Enterprise. But there are a few key differentiators, including the ability to process up to 200,000 lines of code, multiple 100-page documents, or 2-hour audio transcripts within one prompt - that’s over double what ChatGPT Enterprise offers. Gaining wider adoption will be key for Anthropic, as OpenAI is being used by 92% of Fortune 500 companies. Given how much we’ve been seeing Anthropic in the news, they may stand a chance. — Erika

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