Tiger Global Management: Cashing in on an Early Investment in Cohere – Tim Ferris Style
In a bid to capitalize on its smart early investment in Cohere Inc., Tiger Global Management LLC, the venture capital firm, is now looking to sell a 2.1% stake in the artificial intelligence startup for a whopping $63 million. The sale would match the dollar amount of Tiger Global’s initial investment in Cohere and would mark a 40% increase in the startup’s current valuation of $2.2 billion, as reported by The Information.
However, the sale doesn’t mean that Tiger Global will cut ties with Cohere completely. Even after the transaction, the firm plans to retain a 5% stake in the company. Cohere, a Canadian AI startup founded by Chief Executive Aidan Gomez, a former AI researcher at Google, is a direct competitor of OpenAI LP, the creator of ChatGPT. Cohere provides users with access to a range of generative AI models through cloud-hosted application programming interfaces.
Similar to ChatGPT, Cohere’s models are designed to generate text based on user prompts. These models have a wide range of applications, including creating marketing copy, summarizing documents, powering customer support chatbots, and more. Cohere has also developed specialized AI models for text summarization, website search optimization, and transforming words into vector embeddings, a data format that AI applications can process more seamlessly than raw text.
One of Cohere’s key advantages is that, like OpenAI, it allows customers to fine-tune its AI models by training them on their own proprietary datasets. This enables customers to train the models to perform specific tasks and speak in a specific manner. Additionally, Cohere provides the flexibility to deploy these models on any cloud platform or in users’ own data centers, giving them full control over their AI applications.
Cohere is just one of the many AI startups that have benefited from the hype surrounding ChatGPT and generative AI. In fact, the company recently closed a remarkable $270 million funding round led by industry giants like Nvidia, Oracle, and Salesforce, as well as Inovia Capital and SentinelOne. While it is unclear if Tiger Global participated in this funding round, the VC firm had the foresight to lead Cohere’s $159 million Series B round back in February 2022, at a time when generative AI technology was still relatively unknown.
To understand Cohere’s success, it is important to explore the concept of “Transformers,” which is at the core of the company’s AI models. Cohere’s models heavily rely on transformers, a special type of neural network specifically optimized for processing text. Transformers have proven to be far superior to earlier neural networks in terms of their ability to understand and generate prose accurately. They have also shown exceptional performance in tasks like writing software code. OpenAI’s GPT-4, the engine powering ChatGPT, is also based on a transformer model.
Although transformers have been around for six years, Aidan Gomez believes that we have only scratched the surface of what these models can truly achieve. In an interview with SiliconANGLE’s theCUBE in March, Gomez expressed his belief that the next year will bring major advancements in transformer technology. He pointed to examples like Bing Chat, where dialog models are augmented with external knowledge bases, allowing them to remain millisecond up-to-date through web searches.
Editor Notes:
Tiger Global Management’s decision to sell a 2.1% stake in Cohere for $63 million demonstrates their keen investment strategy in emerging AI startups. Cohere’s innovative approach to generative AI and its focus on transformers have helped the company secure significant funding and recognition from industry leaders. With the AI landscape evolving rapidly, it will be interesting to see how the industry adaptation transforms Cohere’s technology and its impact on the AI landscape.
For more technology news and insights, visit [GPT News Room](https://gptnewsroom.com), your go-to destination for the latest developments in artificial intelligence and beyond.
Source link
from GPT News Room https://ift.tt/lXsLbvx
No comments:
Post a Comment