ISLAMABAD: Several startups and investors are turning to alternative AI foundation models, challenging the industry leader OpenAI, which has attracted a $10 billion investment from Microsoft.
Motivated by a desire for models tailored to specific tasks, reduced costs, and a wariness of relying on a single company, more than a dozen companies have embraced OpenAI’s competitors.
The shift in preferences towards alternative AI foundation models highlights how generative AI, defined as technology capable of generating text, images, or other media in response to prompts, might unfold.
As the infrastructure layer of AI applications, foundation models have attracted the most investment from venture capitalists and strategic investors. The market for generative AI is expected to grow to $98.1 billion by 2026, according to PitchBook.
OpenAI’s newly launched GPT-4
OpenAI’s newly launched GPT-4 model remains the most powerful by many standards, but startups and investors said there is a new industry consensus to reduce reliance on a single model.
Some startups worry that Microsoft could compete with its AI customers as the tech giant incorporates OpenAI models into products from search to Office Suites. Startups are also turning to alternative models simply because OpenAI has trouble keeping up with the rising demand.
Despite the competition, some startups, including customer-service software firm Intercom Inc, are still all-in with OpenAI. Intercom’s director of machine learning, Fergal Reid, said, “We currently believe we need to use GPT-4 in order to get the accuracy level that we need for customer service.”
