Inflection AI, a startup in the artificial intelligence (AI) sector, has announced that it raised $1.3 billion in funding. The investment comes from a variety of sources, including Microsoft and Nvidia, and values the company at $4 billion. Inflection AI, founded by Mustafa Suleyman and Reid Hoffman, focuses on developing consumer-facing AI products and is considered a major competitor to OpenAI.
One of Inflection AI’s recent developments is its chatbot Pi, which was released last month. Pi utilizes generative AI technology, similar to ChatGPT, to engage in dialogues with users, allowing them to ask questions and provide feedback. The company’s ultimate goal is to create a personal AI that can assist individuals with planning, scheduling, information retrieval, and other tasks.
Based in Palo Alto, California, Inflection AI currently has around 35 employees. In an earlier funding round in 2022, the company raised $225 million from investors such as Greylock, Microsoft, and Reid Hoffman. Inflection AI’s model Inflection-1, which powers Pi, has been reported to outperform most other available models.
The majority of the newly acquired funding will be allocated towards building computing power to enhance the foundation model. Mustafa Suleyman, Inflection’s CEO, stated that they plan to create a cluster of approximately 22,000 H100s, which is three times more compute power than what was used to train GPT4. This increased speed and scale will enable Inflection AI to develop a unique and advanced product.
The AI industry has gained significant attention as OpenAI’s ChatGPT gained widespread popularity in recent years. As a result, numerous investors have become interested in the sector, and companies have been exploring ways to integrate AI technology into their operations. Regulators have also been considering how to approach the technology.
In addition to Microsoft, an existing investor and supporter of OpenAI, Nvidia, Bill Gates, Reid Hoffman, and former Google CEO Eric Schmidt also participated in Inflection AI’s latest funding round. These prominent investors demonstrate the confidence and enthusiasm surrounding the company’s future prospects.
As the AI sector continues to flourish, Inflection AI’s substantial funding will facilitate the expansion of its capabilities. With the development of a more powerful foundation model, Inflection AI aims to further advance the field of AI and create innovative products that will benefit individuals and businesses alike.