And a couple of product items.
Scientists have developed a method to use large AI models to automatically create smaller AI tools without human intervention. This breakthrough allows for the replication and evolution of AI models, paving the way for self-evolving AI. The smaller AI models, known as TinyML, can be used for specific tasks at a low cost and have the potential to be integrated into various devices, making daily life safer and more intelligent.
I didn’t expect this to be the next big AI product. Snapchat+ has reached 7 million paying subscribers, offering generative AI features such as an image generator, a GPT-4-powered chatbot, and a ‘Dreams’ tool. This success indicates that generative AI may have a different future than expected, with companies adding AI features to enhance existing products. Snapchat’s early success in this area is logical, as AI image generation enhances communication on a camera-first messaging app. This new business line could bring in significant revenue for Snap, which has struggled to maximize the value of its ad space.
Hatz AI, co-founded by Jimmy Hatzell and Aidan Kehoe, has raised $2.5 million in seed funding to enable Managed Service Providers (MSPs) to deliver AI-as-a-service. The platform offers AI applications, AI agents, vector storage, and custom Large Language Models (LLMs) managed through a multi-tenant platform. The company aims to empower MSPs worldwide to build AI-as-a-service businesses and will make their products generally available in March 2024.
New research predicts that AI-capable PCs will become the norm within the next five to seven years, revitalizing the PC sector and transforming user experiences in terms of efficiency, productivity, and creativity. The report suggests that 60% of PCs in circulation will possess AI capabilities by 2027, with initial adoption driven by the commercial sector. PC manufacturers like Dell, HP, and Lenovo are preparing for an AI future, and chip developers such as Intel, AMD, Apple, and Qualcomm play a crucial role.
Why do we care?
I’ll start with that Hatz AI investment – I included it to show the investment dollars are flowing quickly into AI in every sector, and we should expect to see MSPs get attention. This isn’t the first AI-as-a-service offering we’ve discussed.
The success of Snapchat+ in attracting 7 million paying subscribers with its generative AI features underscores the commercial potential of integrating AI into existing products. Expect to see a lot more of that – and be driven into smaller and smaller packages via those smaller LLMs and into the broader computing market as it’s driven to the endpoint.
