Full compensation, albeit a modest return on investment, will be provided to Inflection’s investors through the deal with Microsoft. Despite this, the previously unrealistically high value of Inflection at $4 billion after a $1.3 billion funding round last year means that these investors will not see any immediate large returns.
Read: Celebrating IWD 2024: Top AiThority.com Interviews Featuring Female Executives
Inflection AI and Microsoft
Last year, Inflection debuted Pi, a chatbot that was marketed as a better personal assistant than its rivals, during a time when chatbots were receiving a lot of attention from investors. Inflection had trouble developing a sustainable economic model. Venture capitalist and Microsoft board member Reid Hoffman will continue to be actively involved with Inflection as a director and co-founder while the company navigates its future.
Also, Inflection’s patented technology will remain in its hands. The firm positioned itself as a top AI platform for companies around the world claiming that it is prepared to work with firms like Microsoft and showcasing its skills in training, personalizing, and improving large-scale AI models. The nontraditional arrangement is similar to an “acqui-hire” concept, except that no acquisition is happening. Authorities have recently ramped up their investigation into the investments and partnerships of big tech companies including artificial intelligence.
Read: Top 10 Benefits Of AI In The Real Estate Industry
Training AI Models
Inflection AI is currently looking into ways to sell off its surplus computer capacity since the company operates with a drastically reduced workforce (SCMP). Included in this category are the computing resources that are used for things like training AI models. A partial refund is allegedly being discussed between the company and its cloud computing partner CoreWeave. As Inflection shifts its focus from consumers to enterprises, this move is made to reduce the expenses linked to developing AI models.
[To share your insights with us as part of editorial or sponsored content, please write to sghosh@martechseries.com]
Comments are closed.