AI makes what you’re good at even worse

Image credits: Tom Warner/Getty Images

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If you’ve been reading this newsletter, you’ve probably noticed that I have a bit of an interest in AI, specifically generative AI. I’m probably not the first to make this observation, but the AI ​​is very, painfully average. I think that’s kind of their point. If you acquire all kinds of knowledge and practice, mediocrity will surface.

The trick is to only use AI tools for things you yourself aren’t very good at. If you’re a seasoned artist or writer, you’ll be disappointed. But the truth is, most people aren’t good writers, so ChatGPT and his brethren will be of great benefit to white collar workers around the world. Well, at least until we collectively discovered that house cleaners had more job security than office managers and secretaries.

In that spirit, let’s take a sniff in the startup thicket and see what goodies we can find in the depths of last week’s TechCrunch archives. . . .

Okay, okay, let’s start with AI.

Image credits: Kirilum (Opens in new window) / Getty Images

I know, this happens every week. I started writing this newsletter with the intention of not going eyelash-deep into the AI ​​quagmire, and each week you continue to read AI news as if your lives depended on it. Because I think there’s a good chance it will happen.

GPT Store, introduced by OpenAI, allows developers to create custom GPT-based conversational AI models and sell them in new markets. This initiative aims to expand the accessibility and commercial use of AI, similar to how app stores revolutionized software distribution. Developers can not only build but also monetize their AI creations, opening new avenues for innovation and entrepreneurship in the field of artificial intelligence. Of course, that small update, and the fact that the platform can now read PDFs and websites natively, is a huge boost to the startups that have so far filled the gaps in ChatGPT’s offerings, especially those with business models based on such capabilities. This is a big threat to start-up companies. This is a reminder that building a business around someone else’s API without a sustainable standalone product is probably not the wisest business move.

Of course, AI isn’t just for startups. During Apple’s fourth quarter earnings call, company CEO Tim Cook emphasized AI as a foundational technology and highlighted his recent AI-driven features such as Personal Voice and Live Voicemail in iOS 17. He also acknowledged that Apple continues to develop generative AI technology. , without revealing details.

Heinlein would be horrified. Elon Musk says Twitter’s Premium Plus subscribers will get early access to xAI’s new AI system, Grok, as soon as it leaves initial beta, and the chatbot will be available for advertising on the platform for $16 a month. It was announced that it would be positioned as a benefit for those without service.

Brother, can you lend me your GPU?: AWS introduced Amazon Elastic Compute Cloud (EC2) and Capacity Blocks for ML. This is a new service that allows customers to rent Nvidia GPUs for a period of time, primarily for AI tasks such as training and experimenting with machine learning models.

From zero to AI founder in one easy bootstrap: In TC+’s How to Bootstrap Your AI Startup, Michael Koch advises founders on maintaining control of their startup’s strategy and product through bootstrapping. Yes, even in the capital-intensive world of AI startups.

A rocky sea of ​​venture-backed startups

Image credits: Darrell Etherington acquires assets from Getty under license

WeWork, once a rapidly growing company valued at $47 billion, has filed for Chapter 11 bankruptcy, highlighting its stunning collapse. The company, which has more than $18.6 billion in debt, has received consent from about 90% of its lenders to convert $3 billion in debt into equity to improve its balance sheet and deal with high lease payments. At TC+, Alex pointed out what we’ve known all along: the core business just doesn’t make sense.

Also in other venture news. . .

Former Twitter CEO raises third venture funding: 01 Advisors, a venture firm founded by former Twitter executives Dick Costolo and Adam Bain, has launched its third fund aimed at investing in Series B-stage startups focused on business software and fintech services. Secured investment commitment of $395 million.

Happy 10th anniversary to Unicorn Navasari: Alex reflects on the 10th anniversary of the term “unicorn,” originally coined by TechCrunch to describe startups valued at over $1 billion.

You’ll get a tip! Earn chips!: In response to the AI ​​chip shortage, Microsoft is updating its Startup Assistance Program to provide selected startups with free access to advanced Azure AI supercomputing resources to develop AI models.

Let’s talk about Sam Bankman Freed.

Image credits: Bryce Durbin/TechCrunch

Look, I’m not going to lie, I think most cryptocurrencies are stupid, and I’ve only seen a handful of startups using blockchain in any meaningful way. — most of which would have worked just fine with a simple blockchain database — so I’ve been following Jacqueline’s coverage of the Bankman Fried trial with no small amount of schadenfreude. We all make mistakes, and startup founders are human too, but if you’re defrauding people, you deserve all the retribution you can get.

Sam Bankman Fried was the co-founder and CEO of cryptocurrency exchange FTX and trading company Alameda Research (named specifically to avoid sounding like a cryptocurrency company). . He was found guilty on all seven counts of fraud and money laundering.

The charges related to a scheme to misappropriate billions of dollars in customer funds entrusted to FTX and to mislead investors and lenders at both FTX and Alameda Research. After a five-week trial, the jury took just four hours to reach its verdict.

The collapses at FTX and Alameda Research were significant, leading to the U.S. Justice Department’s indictment of Bankman Fried about 11 months ago, with executives suspected of stealing more than $8 billion in customer funds.

He is scheduled to be sentenced in March next year, but if his actions are taken seriously, he could be sentenced to a total of 115 years in prison.

Jacquelyn did a heroic job covering the trial for TechCrunch. The details are mind-boggling, so it’s worth spending an afternoon reading them all.

This week’s top TechCrunch stories

Sometimes the house wins: Cooper, a mortgage and loan company, experienced a “cybersecurity incident” that resulted in an ongoing outage. The company says it has taken steps to protect the data and address the issue.

I can’t think of any drawbacks to the Hindenburg. The world’s largest aircraft, Pathfinder 1, is an electric airship prototype developed by LTA Research and funded by Sergey Brin. Announced this week, it promises a new era of sustainable air travel.

Arrivals and departures: Arrival, an EV startup that aimed to revolutionize electric vehicle production with its microfactory model, is currently facing severe operational challenges including multiple layoffs, missed production goals, and noncompliance with SEC filing requirements. As a result, its valuation has plummeted by $13 billion. .