AI Rapture Countdown - Exploring the Future of AI
The TechCrunch Exchange: A Weekly Dive into Startups and Markets
Greetings and welcome to the latest edition of The TechCrunch Exchange, a newsletter dedicated to the world of startups and market trends. This publication draws inspiration from the daily Exchange column, offering a free and comprehensive overview for your weekend reading. Interested in receiving it directly in your inbox every Saturday? Sign up here.
Wishing everyone a pleasant Saturday, filled with rest and relaxation.
Exploring the Frontiers of Artificial Intelligence
This week’s edition features an exploration into the evolving landscape of artificial intelligence. Beyond the usual venture capital updates, we’ll be examining the advancements being made by companies striving to make machine intelligence more tangible.
Recent discussions involved representatives from two distinct organizations: one focused on hardware development, and the other on software innovation.
Quantum Computing and the Pursuit of Strong AI
I had the opportunity to speak with Peter Chapman of IonQ, a quantum computing firm that recently became publicly traded through a SPAC merger. Rather than focusing on the details of the merger, our conversation centered on the concepts of science fiction and the true definition of strong AI.
According to Chapman, current AI systems like Alexa operate by relying on pre-programmed responses to user queries. While this approach can be scaled to a certain extent, strong AI necessitates the ability to independently generate its own code. This capability fundamentally differentiates it from conventional, human-designed question-and-answer systems.
Chapman explained that quantum computing is particularly well-suited for the code generation required by strong AI. Furthermore, it excels at simultaneously evaluating numerous probabilities and making informed selections between them.
The Dawn of a New Computing Era
Quantum computing is now entering its initial commercial phases, with companies like IonQ – recognized for its utilization of trapped ions – playing a pivotal role in ushering in this new era of computation. As quantum computing gains wider acceptance, we may move closer to developing AI that transcends the limitations of current machine learning models.
Intrinio and the Power of Financial Data
On the software front, I connected with Rachel Carpenter, CEO of Intrinio. Her company has created a substantial financial dataset accessible through an API. For those with a keen interest in finance, this is a significant development. The relevance of this aspect of Intrinio will depend on your experience with SEC filings.
Intrinio is also developing Thea, an AI service that leverages interconnected neural networks to create a specialized natural language processing engine capable of understanding complex text. This presents a valuable solution for individuals and organizations needing to analyze large volumes of financial reports.
From General Intelligence to Specialized Applications
Carpenter highlighted that Thea was initially trained on data from the broader internet, demonstrating its versatility beyond financial language processing. It possesses a wider range of capabilities.
Currently, the company is concentrating Thea’s application on the financial sector. However, if Intrinio can successfully develop such a sophisticated system using readily available, open-source resources, we can anticipate the emergence of numerous similar intelligent systems in the years ahead. Combined with the increasing commercial viability of quantum computing technology, it appears we may be progressing towards the realization of true artificial intelligence.
Perhaps we were both simply born too soon.
Venture Capital Funding Trends
The third quarter of the year saw an exceptionally active venture capital market, characterized by substantial investment activity. The level of funding was remarkably high, exceeding historical norms.
Early indications suggest that the fourth quarter is mirroring the trends observed in Q2 and Q3, continuing the robust pace of investment.
Recent Funding Rounds
- Notion recently secured $275 million in funding, resulting in a company valuation of $10 billion, as reported by Alex Konrad of Forbes. This represents a significant influx of capital for the company.
- Specifically, Notion divested 2.75% equity for over $250 million, demonstrating favorable dilution terms.
- Notably, Notion still held a substantial portion of its previous funding round prior to this new investment.
- The new funding appears to be based on investor confidence in the company’s potential for a future exit valued at a minimum of $30 billion.
- Modern Treasury completed an $85 million Series C funding round, achieving a valuation exceeding $2 billion.
- This valuation represents a considerable increase from the company’s Series B round earlier in the year, which valued it at approximately $300 million according to PitchBook data.
- The rapid increase in valuation underscores the current market conditions.
These examples demonstrate that the momentum from the second and third quarters is continuing into the fourth quarter. The sustained high levels of investment are noteworthy.
Should 2022 fail to surpass 2021’s venture capital totals, it raises questions about the future frequency of such investment levels.
Current market conditions present a unique opportunity for companies seeking funding.
Additional analysis and commentary are available in recently published articles – accessible here and here – for those interested in a more critical perspective.
Alex
