Tech Investors: The Big Consolidation is Coming. Are You Prepared?
Since ChatGPT 3.5, hundreds of billions have gone into “innovative” AI startups that have invented absolutely nothing!
The field of generative AI and LLMs is pretty new. By definition, most non-data science folks (including VCs) can’t tell the difference between those who CREATE and those who just CONSUME the technology.
A simple observation should make it clear that the vast majority of AI startups simply build wrappers for ChatGPT, or the like. As such, they can have no competitive advantage, nor protective moats.
What have just happened to Inflection AI should sound the alarm: there will be very, very few winners, but many, many losers. Also, generative AI is quickly becoming ubiquitous. To prove the point, I have downloaded Google latest pre-trained model called Gemma (the 2b version) from Hugging Face and run it on my old Lenovo laptop (Intel i7, 32GB system memory, Nvidia Quadro M1200 with 4GB video memory). It worked reasonably well, achieving 4 tokens per second.
At REXSMART, we have taken a different approach. We have built our core (non-generative) AI from the ground up to address an industry specific problem: estimating how much your house is worth instantly, accurately and objectively. Being proprietary, our models can’t be copied or replicated, giving us a tremendous competitive advantage and valuable intellectual property.
If you are a lucky investor who’s not yet thrown his/her capital at Nvidia (the ultimate beneficiary in this hype), we are fundraising to reshape the real estate market with unique, home-grown tech.
About the author
Jaafar Almusaad is a co-founder and CTO of REXSMART. Jaafar has over two decades’ experience in computer engineering, software development and data science. He holds a Master’s degree in Information Technology Management from the University of Sunderland.
https://www.linkedin.com/in/jalmusaad