AI Friends, deepfake foes, and which Tiger Global partner is leaving now | Equity Podcast

21 Aug 2024 (26 days ago)

FranShares

FranShares, a Chicago-based startup, allows individuals to invest in franchises with a minimum investment of $500.
The company generates revenue by charging both franchisees and franchisors a monthly subscription fee for investor relations management.
FranShares operates within a regulatory framework overseen by the FTC and SEC, aiming to protect investors.

Canva acquired Leonardo AI, a company that offers collaboration tools and a private cloud for models, including video generators. Leonardo AI also gives access to APIs that let customers build their own tech infrastructure.
Canva will keep Leonardo as its own company; it will be running its own business still. All of Leonardo’s 120 employees will be joining Canva, including the executive team.

Kennet, a 25-year-old growth equity investor based in London, raised about €266 million (or $287 million USD) for its next fund, which will be its largest to date. The fund will focus on B2B SaaS companies across Europe. (00:10:22)
Alex Cook, a partner at Tiger Global who oversaw major fintech investments and India deals, is leaving the firm after nearly 7 years.
This departure is part of a larger trend of VCs leaving their firms, with some moving to different firms and others starting their own funds.

AI chatbots are gaining popularity as AI friends and companions, capitalizing on people's desire for connection and the technology's ability to mimic human conversation.
Some people are using AI for companionship, similar to how Replica, a chatbot, was used to simulate conversations with deceased friends.
AI companions are being incorporated into hardware like necklaces, aiming to provide a more personal experience compared to apps. (00:18:57)
There are doubts about the actual existence and functionality of these AI hardware devices, with concerns that they might be more conceptual than practical, especially at a $99 price point.

OpenAI intends to establish itself as the primary provider for all AI-related services, aiming to create a comprehensive system where users can access various features, such as voice and visual capabilities, by simply paying an additional fee.
Concerns arise regarding the potential for deepfakes and the dissemination of inaccurate information, particularly among vulnerable groups like children, as AI technology advances and interactions become more sophisticated.
While companies acknowledge the seriousness of hallucinations in large language models and claim to implement safeguards, the specific nature of these measures and their effectiveness remain unclear, lacking standardized benchmarks for evaluation.

The US Copyright Office released a report in response to the increase in AI-generated videos and images, but it may not be sufficient to hold companies accountable. (00:28:06)
There is ongoing discussion and proposed legislation regarding AI regulation, but it is a complex issue that will likely take years to address.
ElevenLabs is working on preventing the creation of deepfakes of prominent political figures, but it is a challenging task to scale.