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- 🤖 Stability AI Is In Danger
What's up? You're reading Inclined AI. I hope this weekend was exactly what you needed it to be
Today we have money on our minds:
Stability AI is burning through cash
Y Combinator’s batch of early startups features a lot of AI companies
Amazon doesn’t want workers thinking they’re falling behind on AI
Fanfiction writers are battling AI claims
STABILITY AI IS STRUGGLING WITH FINANCES
Prompt: Tech bro CEO addresses his co-workers Style: Animation
There won’t be a pizza party for the exec team at Stability AI anytime soon.
Semafor reported that the AI innovator has already burned through a massive amount of the $100m raised last year.
Most of that money went to server costs and new hiring.
Stability AI’s CEO, Emad Mostaque, is taking most of the criticism. He’s indecisive, and his actions show the company needs an adult in the room.
That’s not something you’d like to hear at a place pushing the development of a life-altering technology.
You’ve heard of Stability AI through Stable Diffusion, a recognized leader in generative AI that allows open-sourced access to image-and-video-generating models.
The problem here is not in the AI or the quality of the product.
The leaders are failing to monetize the success they’ve seen, and the core business model is a noble idea but daft in execution.
Don’t worry; this company is not going to go bankrupt overnight.
Venture capitalists will push more money in and increase their oversight on this team. If things don’t change, an acquisition will likely take place in the distant future.
The critical thing to take away is the fragile systems that support these startups.
Stability AI wants to keep things open and flexible for you. So far, that’s hurting their bottom line, while companies like OpenAI close access and show signs of moving towards profitability.
That’s not great, you guys.
YC TELLS US A LOT ABOUT AI INNOVATION
A trend started to show up in the latest Y Combinator Demo Day surrounding AI ideas and abstract hopes for success.
If you’re unfamiliar with the concept, YC is an accelerator that invests in and mentors early startup founders to help them get ideas off the ground.
Their big event, where the founders pitch to investors, highlights the buzzy tech ideas. In this case, the name of the game was AI tools.
Over 30% of the 280+ startups are working on AI-centered concepts.
Wait, don’t start skimming our product section yet. A) we already featured the more established products last week, and B) the overall results are underwhelming.
There weren’t clear visions for the future of AI, and many of the startups sounded like empty calorie ideas for enterprise companies that want to toss AI at consumers without considering the purpose.
It was a haystack of uninspired software tooling with only a few lucrative ideas tossed in from the initial impressions.
The whole event reminds us of how new this stage of AI innovation is. We’re at the beginning.
The ideas will form, and many of these startups will pivot into more promising platforms—that happens all the time with YC companies.
The key to an AI-empowered future doesn’t revolve around customer success chatbots and trivial AI Excel monkeys. Instead, trust the process; the trendline will reflect this fact over time.
A ChatGPT wrapper is not going to move the needle. Pushing what’s possible drives real innovation.
Quick Nuggets
💾 Serve shortages jeopardize AI progress as cloud services struggle to match the new demand
📦 Amazon is trying to quell worries from employees that the company is falling behind
🔮 Doomsday predictions don’t help move things forward as much as you would think
🔏 Fanfiction authors are fighting anonymous allegations that they use AI to write their work
🎓 Universities should embrace AI and find ways to integrate the tool into their student’s lives
✝️ Why Pope Francis? The NYT examines why he became the face of the generative AI moment
🤔 A summary of what the doomsday prophecies are arguing
🖼️ AI tricks are making us all second-guess what we are seeing
😅 ChaosGPT was given the chance to outline how it might destroy humanity
✨ TechCrunch Disrupt is adding a new stage this year: AI
💥 The AI boom is coming whether you want it to or not
🧠 MemoryGPT is a chat AI that remembers and recalls all your conversations
💰 The $13B bet Microsoft placed on OpenAI is filled with uncertainty💰
💸 Tax loopholes are in danger of extinction thanks to AI
🔥 Fresh Products
YourDoctor AI - get your medical questions answered (link)
Notey - transform ideas into real content at 10x speed (link)
Browse GPT - ask the web any question and get in-context answers (link)
Venus - Inspirational quotes with AI artwork made for the background (link)
Copilot4Dating - use AI to overcome your initial chat anxiety (link)
WYD.AI - is like a close friend that’s available 24/7 (link)
SalesMind AI - helps create personal contact strategies for sales profiles (link)
GPT or NPC? - a game where you guess if the person is real or not (link)
Zenn - an email integration that responds to emails for you (link)
PlaylistGenius - crafts the best playlist that you actually want to hear (link)
More Episodes! - continue to dream about the shows you wish were renewed (link)
Good Content, Wes’ Superman
I’d give Wes Anderson a shot at a superhero film. He knows how to add comedy to action and keep things fun.
That’s it for today. I hope you enjoyed the latest edition of inclined.ai - Davis.
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