According to the latest reports gathered by Forbes, the artificial intelligence startup - Inflection AI, focused on devising a 'personal AI for everyone', has concluded a staggering investment round of $1.3 billion. The consortium of investors is formidable, comprising of industry giants like Microsoft, Bill Gates, Nvidia, Reid Hoffman, and Eric Schmidt - the latter being a new investor in Inflection's campaign.
This round pushes Inflection's total funding to an impressive $1.525 million, catapulting the company's value to an incredible $4 billion. The information originates from an inside source acquainted with the proceedings.
Mustafa Suleyman, the CEO who earlier co-founded the AI lab DeepMind, owned by Google, said that the freshly raised capital will boost Inflection's initiatives to create and design its inaugural product - 'Pi', an AI-driven assistant.
Suleyman stated, “Personal AI is set to become our lifetime's most revolutionary tool. We are absolutely at an inflection point.” He expressed his enthusiasm for collaborating with Nvidia, Microsoft, and CoreWeave, along with the other pivotal personalities to breathe life into this vision.
The California-based company, Inflection, operates from Palo Alto and maintains a compact team of approximately 35 employees. They have stayed comparatively under the radar up until now, giving only a handful of media interviews. However, during May, Inflection unveiled 'Pi', designed to deliver knowledge that caters to an individual's specific interests and needs. It is accessible for testing via an online platform or a messaging app. Inflection describes 'Pi' as a kind and supportive ally, providing friendly advice and information in a natural, free-flowing manner.
Inflection showcased Inflection-1, which is the AI model that fuels 'Pi', stating that its performance is on par with or surpasses other models in its category - specifically OpenAI's GPT-3.5 and Google's PaLM-540B. As per the findings stated by the company, Inflection-1 evidently excels at various measures, including common sense benchmarks and middle and high school-level exam tasks. However, when it comes to coding, it lags behind, getting outperformed by GPT-3.5, and in comparison, OpenAI's GPT-4 outshines the competition.
Continuing to strive for larger and highly capable models, Inflection is reportedly partnered with CoreWeave, a GPU cloud provider, and Nvidia in its ambition to create one of the world's substantial AI training clusters composed of 22,000 Nvidia H100 GPUs. Now that they have secured this massive funding, one can assume that they have the wherewithal to achieve it.
With the latest funding round closing, Inflection sits as the second-most funded generative AI startup, next only to OpenAI which has amassed $11.3 billion to date. It surpasses Anthropic with its $1.5 billion funding, far outreaching others like Cohere ($445 million), Adept ($415 million), Runway ($195.5 million), Character.ai ($150 million), and Stability AI (around $100 million).
Despite the challenging macroeconomic conditions, generative AI startups continue to secure substantial funding. Pitchbook reports suggest that approximately $1.7 billion was generated through 46 deals in the first quarter of 2023, in addition to $10.68 billion worth of deals announced but not yet finalised within the same quarter.
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