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5 developments to watch on the generative AI startup front

Tech’s hot topic: The generative AI startup scene outshines the tech industry slump. Here are the latest moves:

OpenAI: Its latest ChatGPT upgrade is a web browser plug-in that allows the bot to access real-time information.

  • Its API integration also allows it to fulfill user requests like flight booking.
  • The changes will likely enhance the chatbot’s commercial utility.

Character AI: Founded by former Google researchers, the startup reached unicorn status after a recent $150 million funding round.

  • The company’s role-playing chatbots that personify any living or dead, real or imagined people showcases generative AI’s lucrative entertainment potential.

Neo: The startup accelerator partnered with OpenAI and Microsoft to offer free software, Azure cloud access, and advice to AI startups.

  • The move underscores leading AI players’ desire to influence the next wave of startups, gain them as clients, and incentivize talent with AI skills to build on existing models.

Rewind: The startup launched its GPT-4-based chatbot that runs in the background on users’ computers to retrieve any data like meetings, tasks, emails, documents, and browser history.

  • We’ll likely see more demand for such personalized chatbots, as well as rising concern about privacy implications.

Google: Its cloud division is offering generative AI startups $250,000 in cloud credits, free technical support, and advice.

  • It enhances the company’s Build with Google Cloud AI program to assist companies in building, deploying, and using AI models.
  • The aim is to compete with Microsoft and Amazon on the cloud front by being the destination cloud provider for all things AI.

Market consolidation on the horizon: A flurry of startups entering the generative AI arena obscures the likely reality that the sector is headed toward a monopoly.

This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.