Posted 3/26/2024, 10:31:00 AM
AI Startups Struggle for Traction as Euphoria Fades, Big Tech Dominates
- OpenAI rival Inflection AI sees its cofounder Mustafa Suleyman leave to join Microsoft, deprioritizing its ChatGPT competitor Pi
- Stability AI CEO Emad Mostaque steps down to "pursue decentralized AI", struggling to gain Big Tech backing
- Cohere, another OpenAI rival, generated only $13 million revenue in 2022 despite $1 billion valuation
- AI startups running into hurdles due to lack of consumer traction and enterprise buyer caution
- Euphoria around AI fading as startups lower ambitions and concede power to Big Tech giants