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Neko Health, an AI Healthcare startup co-founded by Spotify co-founder Daniel Ek, opens in London

September 4th, 2024
Thanks to TechCrunch for covering this -> Neko Health, the body-scanning AI health startup from Spotify’s Daniel Ek, opens in London | TechCrunch

Worth visiting just for the ‘I too can be Derek Zoolander’ photograph of the co-founders.

Healthcare AI Startups are so Hot Right Now

Neko Health is an AI Healthcare startup
1. Focused on preventative healthcare. Basically, they take full body scans and use AI to try and detect things such as skin cancer
2. The test costs 299 pounds. It takes an hour
  - There are a series of scans and tests. Then Neko’s AI takes millions of collected data points and figures out whether you are in danger of any serious health condition
3. Interestingly, a session with a Doctor is included. Not sure how they managed that in the 299 price (this is London, after all)
4. Neko Health has scanned 2,707 people in Stockholm, Sweden
  - 78.5% of those were fine
  - 14.1% needed follow-on medical treatment
  - Roughly 1% had serious issues. None of these 1% were aware of their issues before Neko scanned them
5. The TechCrunch article is worth visiting as it has a comprehensive description of actually going through the Neko Health scans -> Neko Health, the body-scanning AI health startup from Spotify’s Daniel Ek, opens in London | TechCrunch
6. Ek and Nilsonne, the co-founders, have been talking since 2018 about doing something in Healthcare
7. Neko Health raised a $60 million funding round in 2023
Thoughts on Neko Health – Are AI Healthcare Startups here to stay?

We think Neko Health is a brilliant idea, and that AI Healthcare Startups are definitely here to stay
1. Firstly, prevention is almost always better than cure
2. Secondly, most countries have either healthcare systems with massive waits (Canada), or which are failing (UK), or which are too expensive (US)
  - A 299 pound healthcare checkup from Neko Health is very reasonably priced
3. Thirdly, Healthcare has so much waste and inefficiency that there are dozens (if not hundreds) of areas where a startup can save money and time and help hospitals and doctors and nurses and patients
4. Fourthly, just like Legal, Healthcare is an area that is a natural fit for AI. The amount of data. The presence of patterns. The overworked doctors and nurses. The benefits of having double checks and triple checks. The list goes on
5. Fifthly, AI can create a paradigm shift where we let people catch diseases BEFORE they become a real issue
  - Imagine a world where people at risk of developing cancer can find that out before they actually get cancer
  - We already know some animals can detect early stage cancer. Perhaps soon, AI will be able to detect early cancer signs
Overall, Neko Health is a great little AI Healthcare startup (if you can call a company raising $60 million ‘little’) and we hope it does very well.
Why are so many AI companies obsessed with Virtue Signaling and pretending to be Non Profits?

September 1st, 2024
It’s hard not to notice the shocking number of AI companies that pretend they don’t care about money at all.

Companies raising billions. Companies paying their employees millions in salaries. Yet, constantly claiming they are ‘Non Profits’ and ‘Public Benefit Corporations’ and such.

The Duality of AI Tech Startups

The vast majority of AI Tech startups are raising money at an insane rate, paying their employees exorbitantly high salaries, and forecasting immense profitability.

At the same time, the majority of AI Tech startups are doing one or more of
1. Claiming to be Non Profits
2. Claiming to be Open Source and ‘just want to further the technology’
3. Claiming they are only in it for the greater good
Such a beautiful, delicious paradox.

Is this Virtue Signaling disease ever going away?

Nope, doesn’t seem like it.

Not only do AI Tech startups have to deal with allegations of greed, they also have to deal with the non-zero probability that AI will out-evolve humans and then AI will decide to wipe out humans.

AI Tech companies have to virtue signal like their life depends on it, because it does.

Why the attempt to pretend to not care about making money?

This is interesting. Our guess is that a lot of the newer technology companies in Silicon Valley do a lot of corrupt stuff (stealing data, invading people’s privacy, spying on children, spying on people) so they really got into the ‘pretend to be honest’ obsession.

Now you have AI which might destroy jobs and might even destroy the human race. So AI Tech startups are playing the ‘We are so altruistic, never mind that we might wipe out humanity’ game right from the start.

Why so much focus on being a Non Profit?

This one is straightforward. AI tech companies that become the Big 5/Big 10 Winners in the space will be Trillion dollar companies and perhaps even 10 Trillion dollar companies.

When the level of wealth is massive, then the need to pretend to not care about money also becomes massive. A Non Profit is the best way to pretend that the potential prize is not tens of trillions of dollars.

Earlier, weaker attempts to Virtue Signal by Tech Companies

Google started a lot of this ‘we are so pure and sweet’ BS with their ‘Do No Evil’ corporate mantra.

It’s probably that when some technology companies were doing things they realized were borderline shady, they decided that virtue signaling A TON was a good way to distract people from the dark underbelly of what they were doing. Surely, a company that keeps talking about ‘how much Good it is doing’ could not possibly be doing anything bad.

Yeah, people really are that stupid

So, AI companies – If you are doing shady stuff, just pretend you are a Non Profit and do a ton of virtue signaling. The dumb humans will fall for it hook, line, and sinker.
Legal AI Startup Supio raises $25 Million

September 1st, 2024
Supio is a very impressive Legal AI startup out of Seattle founded by Ex Microsoft employees. They just came out of stealth mode and announced they had raised $25 Million.

After seeing their website and reading more about them, it is not at all surprising that they have raised $25 Million in funding.

Reference: Ex-Microsoft engineers raise $25M for legal tech startup that uses AI to help lawyers analyze data – GeekWire

Thanks to GeekWire for covering this.

What does Supio do?

Supio is a Legal AI Tech startup that focuses on a very specific area
1. They focus on a legal AI built for personal injury and mass tort law cases
2. The AI helps lawyers to search through the case data
3. The AI goes through the data and provides insights which helps Personal Injury Lawyers win their cases
It’s quite a neat area to tackle.

Legal AI Tech companies are fascinating to us because there is a natural fit for AI with Legal work.

How much has Supio raised & from whom?

Supio came out of stealth at the end of August 2024 and announced it has raised $25 Million in a Series A led by Sapphire Ventures. This adds to a Pre Seed Round of $8 million (assumption).

Pre Seed Round – Presumably $8 Million from SeaChange.

Series A – $25 Million from Sapphire Ventures (led the round), Bonfire Ventures, and Foothill Ventures.

Current Job Opportunties at Supio

Supio has a dedicated Careers page with the following jobs available
1. AI Operations Analyst
2. Data Analyst
3. Data Engineer
4. Product Manager
5. Software Engineer
6. Sales Development Representative (SDR)
7. Product Marketing Manager
8. Demand Generating Marketing Manager
9. Events Marketing Manager
All positions are based in Seattle, WA, USA. Supio has 27 employees and expects to double head count within the next 12 months.

What does DealAI think of Supio?
1. Very impressive AI Startup
2. Clear focus on one niche in Legal AI is beautiful
3. Very cleanly laid out website
4. Absolutely no BS. Not surprising as most Ex Microsoft people are not into the ‘virtue signaling’ game of – We are only starting this company to save baby seals and we are not doing it for the money
5. Have one good reference. They really need a Clients page and they really need more good references
  - The one good reference is very solid
6. They have a real opportunity to release a product for Healthcare as what they are doing is already covering some key aspects of Healthcare
7. We think they have a very good chance of succeeding. The mix of no-nonsense approach and focusing on a small niche in Legal is great
  - Combine that with possible expansion to more Legal Areas
  - Combine that with possible expansion to Healthcare
  - You have a winning formula
8. Supio charges a subscription fee based on case volume. We are not big fans of this model. However, it would be interesting to know why they chose this model over a Per Seat based model
9. The two co-founders, Jerry Zhou and Kyle Lam, have been best friends for 3 decades. They have worked together at Microsoft in the past
It is quite an interesting company and we hope they continue to do well.
All Current Attempts at ‘Making AI Safe’ are pure Regulatory Capture

September 1st, 2024
You’re in a super fast moving technological field. Everyone is advancing. Everyone is raising money.

Why would you suddenly want to put in a lot of rules and regulations?

The supposed answer is – AI is dangerous and will wipe out the human race.

Well, you sure as heck didn’t care about that when you started working on AI. Suddenly, you are Mother Theresa and concerned about the human race?

People who don’t even care about their parents are pretending they care about total strangers. It’s all an attempt to make idiots of other people by pretending to be very noble. Remember all the Effective Altruists of FTX who were ‘only making money to give it away’?

Yeah, $8 billion stolen from 1 million people. That’s what the real purpose was. Not to ‘make money to give it away’.

Why are the leaders in AI suddenly trying to set up Rules and Regulations to make it very hard to do any advances in AI?

The real answer is – The frontrunners want to shut down all future competitors by introducing all these rules and regulations.

It is the purest form of Regulatory Capture. Anyone doing advances in AI will endanger the human race. No one except the current leading 5/6/7 companies should be allowed to do anything in AI.

The United States of America is Marvelous at Regulatory Capture

As the US is the only country that allows multiple forms of bribery i.e.
1. Lobbying
2. Campaign Fund Raising
It is the best placed for regulatory capture. If a large tech company has enough money, it can just ‘lobby’ and ‘fund’ the right politicians and set up rules and regulations to prevent any competition.

All current attempts in AI to ‘Save the Human Race’ are regulatory capture

Yes, each and every single one of them. Notice how the rules
1. Benefit US companies and hurt any company outside the US
2. Are created by and governed by ‘organizations’ that are controlled and led by the current market leaders in AI
3. Benefit the ones that have ‘already made it’ and hurt any new startups
Isn’t it a super amazing coincidence that the regulatory organizations are set up by For Profit companies (or For Profit companies masquerading as Non Profits), are governed by For Profit companies, and basically are trying to prevent new AI startups from doing EXACTLY what the existing AI companies have already done.
OpenAI raising money at $100 Billion Valuation, 6 months after raising at $80 Billion valuation; Thoughts on OpenAI’s $100 Billion Valuation

September 1st, 2024
On Feb 16th, 2024, OpenAI raised money at a $80 Billion valuation, nearly tripling its valuation in 10 months -> OpenAI Completes Deal That Values the Company at $80 Billion – The New York Times (nytimes.com)

A few days ago, end of August 2024, we found out that OpenAI is raising money at a $100 Billion valuation -> OpenAI Eyes $100 Billion Valuation – The New York Times (nytimes.com)

OpenAI’s Latest Funding – The Details

Thanks to CNBC for these details -> OpenAI in talks to raise funding that would value it at more than $100 billion (cnbc.com)
1. Valuation over $100 Billion
2. Thrive Capital would lead the round and invest $1 Billion
3. Microsoft would also participate
4. Nvidia and Apple are rumored to be interested. No confirmation, yet, that they will participate
5. OpenAI’s annualized revenue has reportedly grown to $2 billion a year
11 Thoughts on OpenAI’s $100 Billion Valuation
1. Given the sky-high valuations of the other frontrunners (Anthropic, Mistral AI), it is not surprising that the market leader, OpenAI, would be valued at over $100 Billion
2. It is super smart of OpenAI to keep raising loads of money. It has some competitors that are very well funded
  - It also has some large tech competitors (Google, Facebook/Meta) that have immense warchests
3. Techcrunch says OpenAI is on track to lose $5 billion in 2024 -> OpenAI reportedly in talks to close a new funding round at $100B+ valuation | TechCrunch
  - If this is true, then OpenAI definitely needs a lot of funding, and ASAP
4. To us it is very interesting that there is so much funding flowing into AI companies. Everyone sure as heck seems to be thinking that AI taking over the world is a foregone conclusion
  - Even more interesting – Everyone seems to think that one or more of the current AI startups will be the Big Winners in AI
5. OpenAI’s $100 Billion valuation would eclipse Anthropic and MistralAI’s valuations of $15 Billion and $6 Billion
  - We do think OpenAI is more valuable. However, by this much? Is OpenAI really worth 5 times Anthropic & Mistral combined?
6. Nvidia and Apple are rumored to be very interested -> OpenAI latest funding tempts 3 most valuable technology companies | Tech News – Business Standard (business-standard.com)
  - Microsoft is already confirmed to participate
  - Basically, everyone wants a piece of OpenAI
7. This funding round will massively increase the pressure on other AI startups. If the leader, OpenAI, keeps raising at very high valuations, it will be hard for everyone else to keep up
8. Wonder what Google and Meta/Facebook think of this Funding Round
  - It would seem that Microsoft and Apple are putting their weight behind OpenAI
  - To be quite frank, OpenAI by itself would have a hard time competing against the massive resources of Facebook/Meta and Google
  - However, if Microsoft and Apple keep funding OpenAI then OpenAI can stay at #1 for a long time
    
    Then Meta/Facebook and Google’s attempts to catch up might not work
    
    For Google, especially, this is an existential threat as SearchGPT (OpenAI’s upcoming search engine powered by AI) could wreck Google’s search dominance
9. AI moves so fast. This entire market space is surreal. Things move so incredibly fast. It makes even crypto seem slow
10. It is super funny that OpenAI is now perhaps the least ‘open’ and least ‘non profit’ company you could imagine
11. OpenAI is a beautiful opportunity for Apple and Microsoft to put Google in the grave
  - Steve Jobs’ hatred of Google is well known
  - Microsoft’s attempts to kill Google are also nearly as well known
  - OpenAI presents the best chance in decades to finally kill Google
We really do live in the most interesting timeline. There is never a dull day in AI.
Amazon hires Covariant Founders and 25% of its staff – Another AI ‘Reverse Acquihire’/’Disguised Acquisition’

September 1st, 2024
Thanks to Geekwire for breaking this story -> Amazon hires Covariant founders, inks AI licensing deal (geekwire.com)

We wrote about Covariant on March 11th, 2024 -> AI Company Covariant is building a new AI Platform for Robots – Deal AI – Deals, Funding, Acquisitions & Mergers in AI

Within 6 months we see that Amazon also thinks Covariant is very interesting.

Amazon has
1. Hired 3 of the co-founders of Covariant
2. Will be receiving a non-exclusive license to Covariant’s AI models
3. Covariant will continue to operate on its own. However, the 3 cofounders are all shifting to Amazon
  - The co-founders are all Ex Open AI
Wonder why the Covariant co-founders would leave behind the company they founded and join Amazon. Pretty sure there is a lot more to this story than we are being told.

What are AI Reverse Acquihires/Disguised Acquisitions?

An Acquihire is when a startup is not getting much traction or Product Market Fit and also has very valuable employees. In such cases, a large technology company will ‘acquire’ the non-starting-up startup to acquire the superstar employees.

A Reverse Acquihire is where (to avoid Anti Trust concerns) the large tech company will hire only the superstar employees and usually get a license for the startup’s technology. So the company itself is not acquired.

It’s a somewhat roundabout way of getting the superstars. Necessary as acquiring the company would alert the FTC and Justice Department. It’s an Acquisition in disguise.

So Disguised Acquisition is a better name than Reverse Acquihire.
Anthropic AI – #9 in Most Interesting AI Companies – #9 Anthropic AI

August 30th, 2024
Anthropic is one of the biggest AI Startups. It has an excellent set of products, including Claude – A very strong competitor to ChatGPT.

Amazon announced on August 30th, 2024 that ‘Remarkable Alexa’ (wonder who chose that remarkably bad name) will be powered by Anthropic’s Claude.

Anthropic and Claude are considered by many to be the biggest rivals to OpenAI and OpenAI’s ChatGPT.

Why Anthropic AI is a super interesting AI Unicorn
1. Crazy funding that is perhaps even crazier than Mistral AI’s super-fast funding
2. Claude is pretty darn good. Some good arguments to be made that Claude is evolving faster than ChatGPT
3. Interesting Mix of pushing Security and Good Principles and having a solid repuation, while getting sued for using other people’s content without permission
  - A real 50% Hero 50% Anti-Hero vibe
4. The Founders are a brother and sister pair – How often do you see that happen?
5. Very interesting website that does perhaps the best job of selling the company story of any $1 billion or higher valuation company anywhere (yes, better than Apple and other ‘story’ magicians)
6. Claude’s new Artifacts feature is very cool. Here is a good ZDNet article on exactly why -> Why Claude’s Artifacts is the coolest feature I’ve seen in generative AI so far | ZDNET
7. They published Claude’s system prompts. This is an unprecedented move and adds some great detail and transparency -> Anthropic publishes the ‘system prompts’ that make Claude tick | TechCrunch
8. Founded and run by sister and brother pair of Daniela Amodei and Dario Amodei. Quite interesting how everyone forgets Daniela exists (thanks to Mark for pointing this out)
Really, we could go on and on. Anthropic is a very interesting company that stands out – Even in a marketplace (AI startups) overflowing with peculiar and fascinating companies.

Anthropic’s Unique Challenges
1. The amount of money required for Anthropic to keep growing and evolving. Anthropic has already raised $7.8 Billion, and it needs more
2. Possible Loss of Control. The co-founders have already handed over 66.4% or so Equity for the first $3.8 billion out of total $7.8 billion of funding. On top of that, Amazon has $4 billion worth of convertible notes (debt) which might be another 20% to 40% (???) of Equity
3. The lawsuits are a very tough challenge. Just don’t see a future where Generative AI companies don’t have very heavy legal costs and have to pay a significant amount as damages. They are not yet big enough to bribe (sorry, we meant ‘lobby’) Congress
4. Some very impressive competitors. OpenAI is the leader and massively funded and already generating very high revenue. Mistral AI is open source and moving very fast
5. Large Tech Companies such as Google and Facebook/Meta are also mounting their own challenges
6. Is Anthropic too nice and balanced? When some companies in your space are basically run by high-functioning psychopaths and others are run by Open Source altruist saints – Is it a mistake to be a true neutral and well-balanced?
Anthropic is a company that has raised $7.8 Billion in 3 years and yet, somehow, it still faces massive extinction level risks.

Anthropic’s Geopolitical Challenges
1. Anthropic is based in the US. The main challenges it will face are China doing obvious things to block it in China, and Europe doing subtle things to block it in Europe
2. Within the US, it would really depend on which AI startup gives the most access to the US Government. If OpenAI is giving a lot more access, then it is conceivable that Anthropic gets taken out to shift more users and more data to OpenAI
3. Quite frankly, the best way to minimize Geopolitical risks is to found and base your company in the US and then sell out to the US Government. So Anthropic have the first part right and we’re sure they will figure out the second part sooner or later
Very few Geopolitical risks, to be fair.

Anthropic’s Not So Obvious Challenges
1. Raising so much money and from so many high-risk investors. Amazon’s convertible notes (debt). Raising money from the trifecta of Bankman-Fried and Ellison and Singh from FTX. These sort of deals bring their own unique challenges
2. Anthropic’s revenue run rate is $8 million a month in 2023 and is expected to increase to $64 million a month by end of 2024
  - Does that warrant a $15 billion valuation? Perhaps it does in a super hot area like Generative AI/Frontier AI
3. Anthropic’s story is Too Perfect. A somewhat unpolished story (most AI startups), or a very flawed story (OpenAI) are easier to believe. There is literally zero negative press about Anthropic and that is peculiar
4. Effective Altruism Connections. Daniela Amodei is married to the founder of an Effective Altruism Non Profit
  - Anthropic’s Series B had funding from Sam Bankman Fried, Caroline Ellison, and Nishad Singh. Those are the top 3 FTX executives and one or more are reported to be Effective Altruism proponents (unconfirmed)
5. Anthropic is ‘very balanced’ and that is tough when some competitors are very cut-throat and some are ‘open source’. At the end of the day, it comes down to whether the Amodei siblings have the ruthlessness to compete against devils and saints
Anthropic is super interesting because it has chosen the most ‘palatable’ strategy – Neither Evil, nor Noble. Is that a strength or a weakness?

Anthropic’s Crazy Funding History

If you think Mistral are funding savants, wait till you read about Anthropic and their absolutely bonkers funding history (including a Series B led by Sam Bankman-Fried)
1. Across 10 funding rounds (Pitchbook says 10 funding rounds) they have raised billions
  - New York Times says Anthropic have raised $7.3 billion in 2023 and 2024
2. The specifics of their funding rounds are rather difficult to find. We have listed what we could find below, in a later section
3. They had their Series B in April 29th, 2022 led by Sam Bankman-Friend, with Caroline Ellison (FTX) and Nishad Singh (FTC CTO) as other investors
4. The Center for Emerging Risk Research (https://emergingrisk.ch/) invested in Anthropic’s Series A and Series B rounds. It hasn’t invested in any other companies (according to Crunchbase) and information on it is hard to find
Details on Anthropic’s Funding Rounds –
1. Series A on May 28th, 2021 -> $124 Million raised at an unknown valuation. Led by Jaan Tallinn (Co Founder of Skype)
  - Investors -> Jaan Tallinn, James McClave, Duskin Moskovitz (co-founder of Facebook), Center for Emerging Risk Research, Eric Schmidt (former CEO of Google), others.
2. Series B on April 29th, 2022 -> $580 Million raised at an unknown valuation. Led by Sam Bankman-Fried.
  - Investors -> Sam Bankman-Fried (CEO of FTX), Caroline Ellison (FTX), Jim McClave, Nishad Singh (FTX CTO), Jaan Tallinn, the Center for Emerging Risk (CERR – https://emergingrisk.ch/).
3. [Unconfirmed] Round X in early 2023 -> $400 million investment at an unknown valuation. Led by Google
  - Investors -> Google, unknown if others
4. Series C on May 23rd 2023 -> $300 million investment at a $4.1 billion valuation. Led by Spark Capital
  - Investors -> Spark Capital, Google, Salesforce Ventures, Sound Ventures, Zoom Ventures
  - Spark Capital’s Yasmin Razavi joined Anthropic’s Board of Directors
5. Series D in August 2023 -> $100 Million at an Unknown Valuation
  - Investors -> 2 Asian telecoms
6. Series E in End 2023 -> $4 Billion at an Unknown Valuation
  - Investors -> Amazon
  - Investment -> Convertible Notes (Debt that becomes equity when Anthropic hits certain milestones)
7. Series F in End 2023 -> $2 Billion at an Unknown Valuation
  - Investors -> Google
8. Series G in February 2024 -> $750 Million at a $15 Billion (according to the New York Times)
  - Investors -> Menlo Ventures
  - Reference -> Inside the Funding Frenzy at Anthropic, One of A.I.’s Hottest Start-Ups – The New York Times (nytimes.com)
Would never have thought that Mistral AI’s funding rounds would seem sane. The combination of raising $7.854 Billion in 3 years and having $4 billion as convertible notes (debt) is a sort of madness we don’t get to see and appreciate often.

Anthropic Super Rough Cap Table + Super Rough Equity Ownership

Please Note: This is based on estimates and assumptions. Do not take this as Gospel

The only known figure we have is that FTX’s stake in Anthropic is 8%. We know this from FTX bankruptcy court. Everything else is speculation and guesstimates.

Series A -> $124 Million. Assuming $1 Billion Valuation -> 12.4% Equity. Most likely Equity would be higher than 12.5% as this was a Series A

Series B -> $580 Million. Very hard to say percentages as FTX share of Anthropic is 8%. It is not clear what share the other investors have. Let’s say $2.9 Billion Valuation and 20% Equity.

Series X -> Unconfirmed $400 Million from Google. Leaving this out as Unconfirmed.

Series C -> $300 Million at $4.1 Billion Valuation. That’s 7% Equity approximately

Series D -> $100 Million at $5 Billion perhaps (unconfirmed). 2% Equity.

Series E -> $4 Billion Convertible Notes (Debt) at perhaps $10 billion valuation. Can’t say equity percentages until the notes convert. Perhaps 20% to 40% Equity

Series F -> $2 Billion from Google at perhaps $10 Billion Valuation. So 20% Equity.

Series G -> $750 Million at $15 Billion Valuation. So 5% Equity.

Obviously, the numbers don’t really add up. It’s a total of $7.854 billion raised and equity of 66.4% given up. Additionally, Amazon has convertible notes that might be anywhere from 20% to 40% Equity.

In theory, Anthropic gave up 66.4% for $3.854 Billion and another 20% to 40% as convertible notes (debt) to Amazon for 20% to 40%.

One wild card is that Amazon might use that convertible notes (debt) to nuke Anthropic like they nuked Future Retail in India. So that is a big, big risk Anthropic took.

FYI -> If you are a hot AI startup, don’t ever take on Debt.

What makes Anthropic Very Interesting to Deal AI

Firstly, the sheer amount of ammunition Anthropic has.

Secondly, how good Claude is.

Thirdly, the implicit and explicit backing of the US Government and of US Venture Capitalists and US Institutions.

Fourthly, Anthropic has dodged all the bad PR some AI companies have been inundated with.

Fifthly, Anthropic has started a $100 Million fund for AI startups. It provides checks of $100K and also $25K in Anthropic credit. This is quite interesting, for a number of reasons we will discuss in a separate post.

Sixthly, Anthropic seems an insanely well run company. Getting a lot of Nvidia vibes where everyone knew Nvidia were doing beautiful work in Graphic Cards. No one realized they would become #1 in AI chips and AI servers. Anthropic has a lot of the same ‘we get stuff done excellently’ vibes

Seventhly, they already have a very, very strong stable of Clients. Perhaps second only to Open AI.

Eighthly, their PR and Press Outreach is very strong and very professional. Notice how all the articles about them seem to fit into the Anthropic ‘story’ seamlessly. What a remarkable coincidence, eh.

Ninthly, so far they seem to be following the ‘Fast Follower’ strategy excellently. The first mover sometimes wins. At other times, they take all the hits of being the pioneer and make a lot of mistakes. Then the ‘fast follower’ becomes the winner. Anthropic are setting themselves up perfectly to be ‘The Fast Follower that learned from the First Mover’s mistakes and then win the race to be #1’.

Tenthly, Daniela Amodei is a very smart cookie who communicates superbly. Watch her interview and tell us who is the best communicator out of all the AI Startup founders -> Anthropic Co-Founder Daniela Amodei on AI adoption, Claude 3 and impact on payments | Watch (msn.com). Watch this too, if you have the time -> First Block: Interview with Daniela Amodei, Co-Founder & President of Anthropic (youtube.com)

Might Anthropic be The Winner in AI?

Yes, Anthropic has a pretty decent chance of becoming the Big Winner in AI. This is, of course, not guaranteed in any way, shape or form.

We do feel very strongly that OpenAI will get overtaken because of OpenAI’s constant drama and rollercoaster leadership. When that happens, Anthropic has as good a chance as any AI company to become the frontrunner.

Might Anthropic be a Top 5/Top 10 Winner in AI?

Yes, there is a very high chance Anthropic will be a Top 10 Winner in AI. There is also a decently high chance Anthropic will be a Top 3/Top 5 Winner in AI.

Who are the Co Founders of Anthropic?

Brother Sister pair, the Amodeis.

Dario Amodei -> Dario Amodei – Wikipedia

Daniela Amodei -> Daniela Amodei – Wikipedia

Which Venture Capitalists & Investment Funds & Investors have invested in Anthropic?

Series A Investors -> Jaan Tallinn (Co-Founder of Skype), James McClave, Duskin Moskovitz (Co-Founder of Facebook), Center for Emerging Risk Research, Eric Schmidt (former CEO of Google), others.

Series B Investors -> Sam Bankman-Fried, CEO of FTX. Caroline Ellison (FTX), Jim McClave, Nishad Singh (FTX CTO), Jaan Tallinn (Co-Founder Skype and Lead Investor in Series A), the Center for Emerging Risk (CERR – https://emergingrisk.ch/).

Series X Investors -> (Unknown, rumored to be $400 Million from Google) -> Google, unknown if others.

Series C Investors -> Spark Capital, Google, Salesforce Ventures, Sound Ventures, Zoom Ventures

Series D Investors -> 2 Asian Telecoms

Series E Investors -> Amazon

Series F Investors -> Google

Series G Investors -> Menlo Ventures

DealAI’s Thoughts on Anthropic’s Future

Very Bright. Incredibly Bright.

To be quite frank, Anthropic are doing almost everything right –
1. Choice of Location
2. Amount of Funding.
3. Funding when the market is hot
4. Breaking the rules just enough
5. Selling their story very well
After Nvidia, Anthropic might be the best run AI company right now.

DealAI’s Thoughts on Anthropic’s Strategy

To Be Updated. While we have figured out a lot of Anthropic’s strategy there are some aspects we still don’t understand. We will update this Strategy section when we have more clarity on Anthropic’s complete Strategy.

References & Credits
1. Anthropic company website -> Home \ Anthropic
2. Wikipedia -> Anthropic – Wikipedia
3. New York Times -> Inside the Funding Frenzy at Anthropic, One of A.I.’s Hottest Start-Ups – The New York Times (nytimes.com)
4. Techncrunch -> Anthropic publishes the ‘system prompts’ that make Claude tick | TechCrunch
5. ZDNet -> Why Claude’s Artifacts is the coolest feature I’ve seen in generative AI so far | ZDNET
6. The Information (Subscription Wall) -> OpenAI Rival Anthropic Raises Funding at $4.1 Billion Valuation — The Information
Artificial Intelligence Breaking News Sections of the Largest Newspapers & Tech Blogs

August 30th, 2024
These are the AI News sections of some of the largest Newspapers and Technology Blogs. Quite interesting to see how each covers AI breaking news –
1. New York Times AI Breaking News -> Artificial Intelligence – The New York Times (nytimes.com) (https://www.nytimes.com/spotlight/artificial-intelligence)
2. TechCrunch AI Breaking News -> AI News & Artificial Intelligence | TechCrunch (https://techcrunch.com/category/artificial-intelligence/)
3. BBC AI Breaking News -> Artificial intelligence – BBC News (https://www.bbc.com/news/topics/ce1qrvleleqt)
4. Reuters AI Breaking News -> AI News | Latest Headlines and Developments | Reuters (https://www.reuters.com/technology/artificial-intelligence/)
5. WSJ AI Breaking News -> Artificial Intelligence – Latest AI News and Analysis – WSJ.com (https://www.wsj.com/tech/ai)
6. NBC AI Breaking News -> Artificial intelligence news: Chat AI, ChatGPT, AI generator, AI Chatbot and Bard | NBC News (https://www.nbcnews.com/artificial-intelligence)
7. Bloomberg AI -> AI – Bloomberg (https://www.bloomberg.com/ai)a
8. CBS AI Breaking News -> Artificial Intelligence news – Today’s latest updates – CBS News (https://www.cbsnews.com/tag/artificial-intelligence/)
9. Financial Express AI Breaking News -> Artificial intelligence News: Artificial intelligence Latest News, Artificial intelligence Today news, Artificial intelligence Breaking News | The Financial Express (https://www.financialexpress.com/about/artificial-intelligence/)
10. MIT News AI Breaking News -> Artificial intelligence | MIT News | Massachusetts Institute of Technology (https://news.mit.edu/topic/artificial-intelligence2)
Will update this list as and when possible. Feel free to leave a comment if you have a favorite AI Breaking News tech blog or newspaper not covered here. Thank You
India’s AI Strategy, or lack thereof

August 27th, 2024
This is the IndiaAI site which supposedly covers India’s AI strategy.

It shouldn’t take you very long to figure out that this is hogwash.

You can also check the OECD.ai website’s India section and find the same sort of poorly thought-out strategy.

For Example: The yearly budget allocated is $20 Million to $50 Million. That’s less than the seed round for most AI Startups these days. $20 to $50 Million for a country of 1.4 billion people is absurdly low.

The link to India’s National AI Strategy at the Niti India website doesn’t even work -> https://niti.gov.in/national-strategy-artificial-intelligence

Which, to be fair, is exactly the state of India’s AI strategy and execution.

Why does India not have a proper AI Strategy?

It is hard to say. In some ways the Indian Government has been making tremendous progress
1. The National Aadhar card is a technological marvel
2. UPI is a universal payments interface which just works and can handle very small amounts smoothly (something most payment systems really struggle with)
In AI, unfortunately, the Indian Government doesn’t even realize the AI Wars are in full flow. There is almost nothing being done by India in AI.

Why is India not investing a lot into AI Startups and AI?

That is a hard question to answer. At a time when the USA, China, Europe, and even the Middle Eastern countries are going crazy investing in AI Startups and encouraging their own AI startups, India seems to be sleeping on AI.

Most of the interesting Indian AI startups are funded by Foreign Investors, usually from the US.

Is India going to wake up and start investing big in AI? Perhaps even develop a working AI Strategy to catch up with America and China?

Really hard to say what the Indian government is going to do. At the moment, it seems to be blissfully unaware that the rest of the world is fighting for dominance in AI and viewing Artificial Intelligence as
1. An existential threat to the existing World Order
2. An opportunity to become the next big Sole Super Power
When it comes to AI and AI Strategy, India is ambling along on a bullock cart, while everyone else is jumping on their planes and jets.
The Information informs us that Ex Googlers who started AI Startups are finding out Startups are Tricky

August 26th, 2024
This is quite an interesting article (Subscription blocked) -> Ex-Googlers Discover That Startups Are Hard — The Information

It talks about
1. French AI developer, H, which has 5 co-founders (4 of them Ex Googlers). How 3 of the 5 co-founders have left after ‘operational and business disagreements’
  - This is despite just raising $220 million from investors in a seed round
2. Acquisitions of Inflection, Adept, and Character. All founded mostly by Ex Googlers. Each company less than 3 years old
3. Possible acquisition of Reka by Snowflake, which fell apart. The acquisition price was rumored to be $1 Billion
This is very interesting because the definition of ‘hard’ can be relative.

All these Ex Googlers became multi-millionaires, in 1 to 3 years. Is that hard?

If H raised $220 million and 3 of the 5 co-founders left. Is that really hard for them? This was the seed round.

Assuming reasonable estimates of $400 million valuation and each co-founder still having 5% to 10% equity -> Each became worth $20 Million to $40 Million.

How is that ‘finding out startups are hard’?

Same for the companies that were acquired. The co-founders probably made a few million each. Now they go work a cushy job at a big technology company, probably getting paid half a million a year.

How on Earth is that ‘hard’?

Starting an AI startup is the least ‘hard’ thing you can do right now

Firstly, VCs and Investors are dying to pour money into anything AI related.

Secondly, valuations are absolutely absurd.

Thirdly, large tech companies are doing acquisitions and partnerships like crazy.

Fourthly, the time frame for everything is absolutely crazy. A seed round of $220 million for H is even crazier than seed round of $132 million for Mistral AI. When is the last time, outside of AI startups, you’ve heard of a $220 million ‘Seed’ round?

AI Startups are the best thing any Entrepreneur can do right now

Unless you have some area you are very passionate about, and have great Product Market Fit and a great product in that area, the best path for any Entrepreneur or startup is to pivot to AI.

AI means you will raise money far more easily, and at a far higher valuation, than in any other area.

To make things even more delicious, there just aren’t that many AI software engineers. So if you can hire a few, or have experience yourself, you are almost guaranteed to get funding.

Stop listening to people wrongly claiming AI startups are hard. These ‘AI startups finding out being a startup is Hard’ are companies raising $220 million ‘seed rounds’ and getting acquired for hundreds of millions of dollars.