Yo, check it out! The word on the street is that Tiger Global Management LLC, those venture capital big shots, are about to cash in on a smart move they made, investing early in the AI startup known as Cohere Inc. This report from The Information says that Tiger Global wants to sell off about 2.1% of its stake in Cohere for a cool $63 million, which just so happens to be the same amount they initially invested. And get this, it’s a nice 40% markup on Cohere’s current valuation of $2.2 billion. Talk about playing the game right!
But here’s the thing, Tiger Global ain’t ditching Cohere completely. Nah, after this sale goes down, they’ll still be rockin’ about 5% of the company. So they’ll still have a dog in this race.
So what’s the deal with Cohere anyway? Well, they’re a Canadian AI startup that’s got their sights set on takin’ down OpenAI’s ChatGPT creator. Led by CEO Aidan Gomez, who used to do AI research for Google, they offer access to a bunch of generative AI models through their cloud-hosted APIs. These models are all about generating text based on user prompts, just like ChatGPT. You can use ’em to whip up killer marketing copy, summarize documents, power customer support chatbots, and more.
But that’s not all! Cohere has also cooked up some real specialized AI models, like one that’s all about text summarization and another that’s designed to handle website search. They even have a third model that can transform words into vector embeddings, which is a fancy data format that AI apps can handle like a breeze.
Just like OpenAI, Cohere lets customers fine-tune their AI models by training them on their own special datasets. This means you can train Cohere’s models to do even more specific tasks, talk in a certain way, and whatnot. And the best part? You can deploy these bad boys on any cloud platform or even in your own data centers. Now that’s flexibility!
Cohere is just one of many AI startups cashing in on the hype surrounding ChatGPT and generative AI. Back in June, they scored a huge funding round of $270 million, with big players like Nvidia, Oracle, Salesforce, and others throwing down some serious cash. But get this, Tiger Global was one step ahead. They were the ones leading the charge in Cohere’s Series B round, dropping a cool $159 million back in February 2022 when generative AI was still flying under the radar.
The man behind Cohere, Aidan Gomez, ain’t messin’ around. He founded this baby back in 2019 with his buddies Nick Frosst and Ivan Zhang. And if that name rings a bell, it’s because Gomez co-authored a groundbreaking academic paper on Transformers, a concept that’s become a game-changer in AI technology. Transformers are these specialized neural networks that are all about processing text, and they’re at the heart of Cohere’s AI models. They can understand and generate prose with insane accuracy, way better than the earlier neural networks. They even excel at writing software code! OpenAI’s GPT-4, which powers ChatGPT, is also a transformer model.
But here’s the thing, transformers have been around for about six years, and according to Gomez, we’ve only scratched the surface of their potential. He’s sayin’ that in the next year, we’re gonna be seein’ some major changes. And he’s got a point! We’ve already seen glimpses of what these models can do, like with Bing Chat, where you can combine these dialog models with an external knowledge base. That means these models can stay up-to-date to the millisecond by searching the web. Talk about next-level stuff!
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