PreIPO INTELLI™ Weekly Insights | Series 43
Friday, August 4th 2023 | Volume 1 Series 43 | Pinecone's Vector Database, Shopify's Business Credit Card, and Meta's Innovative Sound and Music Creation Method
Hello, everyone! As we approach the end of the week, the INTELLI™ team is thrilled to bring you some exciting updates to keep you informed. This week will be covering Pinecones Vector Database, Shopifys brand new business credit card, and Meta’s new way to create sound and music.
Empowering AI with Pinecone's Vector Database
It's common to get mesmerized by the text-predicting abilities of user-facing AI models like ChatGPT without considering the underlying mechanisms that enable such predictions. In essence, AI models consist of two crucial elements: computation and remembrance.
Before deployment, AI models undergo extensive training on vast datasets, a process that can span weeks or months depending on the model's size. Memory is crucial for these models, as it allows them to store and retrieve information, similar to how human memory functions. The more robust the memory, the closer AI models get to achieving higher performance.
Recently valued at $750 million in a Series B funding round led by Andreessen Horowitz, Pinecone has introduced a vector database, granting AI models access to long-term memory. This database forms the core infrastructure for companies seeking to build and scale AI models.
Unlike building models, Pinecone focuses on providing one of the essential technologies for companies constructing AI models. Dr. Edo Liberty, Pinecone's founder and CEO, explains that building an AI model requires both technology for model construction (computation) and memory storage and retrieval (database).
Dr. Liberty illustrates the analogy of how recognizing someone walking down the street involves both processing the immediate image and recalling long-term memories. Pinecone's vector databases play a crucial role in creating responsible and compliant AI systems by offering administrators greater control over the model's memory, allowing them to delete specific information as needed.
While AI technology is expected to transform society, Dr. Liberty remains optimistic that human adaptability will prevail. He emphasizes that automation of cognitive efforts is not necessarily a risk or a singularity but a powerful tool that can be both disruptive and exciting.
Although some experts warn about potential job impacts, others champion the idea that humans will overcome economic changes brought about by AI. Dr. Liberty encourages exploration of AI systems while advocating responsible and thoughtful use of this groundbreaking technology to avoid potential misuse.
Shopify Launches Exclusive Business Credit Card in Partnership with Stripe and Celtic Bank
Image Credits: Shopify
Shopify, the commerce giant, has recently unveiled its latest offering called "Shopify Credit," a business credit card designed exclusively for its vast network of merchants. This move marks Shopify's first foray into the realm of pay-in-full business credit cards, aiming to provide entrepreneurs with a powerful financial tool to enhance their cash flow and maximize working capital for both anticipated and unforeseen expenses.
Shopify Credit is backed by industry leaders Stripe and issued by Celtic Bank, and it enjoys widespread acceptance, being usable wherever Visa is accepted. The card's design focuses on the realities faced by entrepreneurs, acknowledging the significance of a smooth cash flow in running successful businesses. As enterprises mature, they often find themselves in need of a reliable credit line, and Shopify Credit aims to fulfill that need.
An essential aspect of Shopify Credit is the evaluation process during the application, which takes into account various factors, including the merchant's sales performance, instead of relying solely on credit checks. Moreover, eligibility is contingent on the merchant being on Shopify Payments and based in the United States with sales on the Shopify platform. Additionally, the application requires a "know your customer" (KYC) process. Once approved, merchants can immediately begin spending with a virtual card, with the added benefit of earning 3% cash back on their top spend category and 1% on other categories, such as wholesale, marketing, and shipping.
One significant advantage of Shopify Credit is its commitment to a fee-free experience for merchants. There are no charges for the card, including no late fees or foreign transaction fees, providing a transparent and cost-effective financial solution to Shopify's merchant community.
This latest move is part of Shopify's continuous efforts to intersect fintech and commerce. Over the years, Shopify has been exploring partnerships and initiatives in the financial services space to empower its merchants. Previously, it collaborated with Israeli B2B payments startup Melio to introduce a bill pay tool for U.S.-based merchant customers. Additionally, Shopify launched Shopify Capital in 2016, providing merchants with access to working capital. More recently, it introduced Shopify Balance, an initiative to aid merchants in managing their money, along with offering loan facilities.
As a leading player in the e-commerce landscape, Shopify has not disclosed the exact number of merchants it serves in the U.S., but the company proudly works with "millions of merchants" worldwide, reinforcing its position as a key player in the digital commerce ecosystem. With the introduction of Shopify Credit and its commitment to providing robust financial solutions, Shopify continues to solidify its position at the forefront of fintech innovation while bolstering its merchants' success in the ever-evolving world of online business.
Meta has released an open-source framework for creating sounds and music 🎵
Image Credits: TechCrunch
Meta has unveiled AudioCraft, a framework designed to generate high-quality and realistic audio and music from short text descriptions or prompts. This advancement signifies the approaching era when generative AI will not only create text and images in a human-like manner but also compose professional-level music and sounds.
AudioCraft consists of three generative AI models: MusicGen, AudioGen, and EnCodec. MusicGen, although not new, has been made available with its training code for users to train the model on their music datasets. However, this poses ethical and legal challenges as MusicGen learns from existing music to replicate similar effects.
AudioGen, another model in AudioCraft, focuses on producing environmental sounds and effects rather than melodies. Utilizing a diffusion-based model, AudioGen generates realistic environmental sounds from text descriptions of acoustic scenes.
EnCodec, the final model, represents an enhancement over a previous model. It efficiently models audio sequences and aims to craft novel audio with minimal artifacts.
Meta acknowledges the potential misuse of AudioCraft, particularly for voice deepfakes, similar to MusicGen. However, Meta does not impose significant restrictions on the use of AudioCraft or its training code.
While Meta emphasizes the positive potential of AudioCraft in inspiring musicians and enhancing creative processes, there are challenges and possible legal issues to address. Meta plans to explore improved controllability and performance for generative audio models while mitigating their limitations and biases. They emphasize transparency in model development to empower both amateur and professional musicians.
Recent Funding and M&A recap 🤝
Image Credits Peter Dazeley / Getty Images
Lula - $35.5 Million Series B
Lula, a startup aiming to become the insurance equivalent of "Stripe," has secured $35.5 million in a Series B funding round following a substantial surge in its customer base.
Back in July 2021, Lula's focus was on developing an insurance API that aimed to remove the necessity for companies to construct their own insurance infrastructure. However, over time, Lula's offering has expanded into a more comprehensive insurance solution, designed to assist companies in reducing insurance premiums and related expenses. Its range of tools now includes risk management, claims management, policy management, and access to insurance coverage.
GlossGenius - $28 Million Series C
GlossGenius, a company specializing in solutions for beauty businesses, has successfully raised $28 million in funding. This capital infusion aims to further develop and expand the company's platform, which focuses on streamlining bookings and payments within the beauty industry.
The funding round was propelled by GlossGenius' commitment to providing comprehensive tools tailored to the unique needs of beauty professionals. By facilitating smoother appointment scheduling and seamless payment processing, the platform enhances the operational efficiency of beauty businesses.
The $28 million funding injection is expected to fuel GlossGenius' growth trajectory, enabling it to reach a broader audience of beauty industry participants. The company's existing features, such as online booking and secure payment options, are poised to receive enhancements, solidifying GlossGenius' position as a leading tech solution provider for beauty businesses.
Endor Labs - $70 Million Series A
Endor Labs, a company that offers a platform enabling developers to manage and safeguard their open source dependencies, has successfully concluded a Series A funding round, securing $70 million in investment. This substantial funding comes just 10 months after the company's initial launch. The funding round was led by Lightspeed Venture Partners, with participation from Coatue, Dell Technologies Capital, Section 32, as well as several angel investors.
With this latest injection of capital, Endor Labs has raised a total of $95 million. The CEO and Co-founder, Varun Badhwar, explained that these funds will be used to expand the company's current workforce of 55 employees. Additionally, the funds will be utilized to enhance the company's existing technical capabilities and to further develop its strategies for entering the market.
As always, stay tuned for more updates and insights from the team at INTELLI™.