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{"id":31713,"date":"2023-05-10T22:37:00","date_gmt":"2023-05-10T22:37:00","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/05\/10\/ai2-incubators-new-30m-fund-triples-down-on-early-stage-ai-startups\/"},"modified":"2023-05-10T22:37:02","modified_gmt":"2023-05-10T22:37:02","slug":"ai2-incubators-new-30m-fund-triples-down-on-early-stage-ai-startups","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/05\/10\/ai2-incubators-new-30m-fund-triples-down-on-early-stage-ai-startups\/","title":{"rendered":"AI2 Incubator\u2019s new $30M fund triples down on early-stage AI startups"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/10\/ai2-incubators-new-30m-fund-triples-down-on-early-stage-ai-startups\/<\/a><\/br>
\nAI2 Incubator\u2019s new $30M fund triples down on early-stage AI startups<\/br>
\n2023-05-10 22:37:00<\/br><\/p>\n

\n

The AI startup world may be getting hotter by the day, but there\u2019s a difference between a startup that uses AI<\/em> and an AI-first startup<\/em> \u2014 and the Allen Institute for AI prides itself on fostering the latter in its AI2 Incubator<\/a>. Their previous $10 million fund did so well that the backers have returned and refilled the coffers three times over.<\/p>\n

Twenty-one companies have passed through the incubator since 2017, attracting some $160 million in further investment and at least one major acquisition: XNOR, an AI acceleration and efficiency outfit that was subsequently (and I like to think as a direct consequence of TC coverage<\/a>) snapped up by Apple for around $200 million<\/a>.<\/p>\n

XNOR\u2019s success alone probably would have more than justified this second fund, but AI2 has a knack for finding interesting companies with technical founders going after undervalued markets. Two off the top of my head: WellSaid<\/a> was getting into synthetic voice as a service quite early, and Blue Canoe<\/a> uses ML to help folks work on their accents in foreign languages.<\/p>\n

\u201cWe\u2019re at a tremendously exciting moment in the world of AI, but the lesson is to calm down and remain pragmatic in the face of extraordinary hype. It\u2019s easy to drink a little too much Kool-Aid,\u201d said Jacob Colker, managing director of the organization. \u201cWe continue to beat the drum of startup fundamentals: solve real problems, make real experiences, put firepower on the team and build a go-to-market strategy, and we\u2019re doing that with exceptionally talented technical folks.\u201d<\/p>\n

The technical prowess of their founders is a deliberate move on the part of the incubator and at AI2 in general.<\/p>\n

\u201cWe look particularly for technical founders, because they might need to build their own version of a model, or run a million custom models instead of one large one. It goes down to our roots: the AI2 team, essentially 50% of our management is highly, highly technical,\u201d said Oren Etzioni, an AI2 technical director.<\/p>\n

The team was careful to emphasize that the goal is not to produce some dark horse challenger to the big companies and models out there, nor to simply take advantage of the feeding frenzy around AI right now in the wake of ChatGPT\u2019s historic popularity.<\/p>\n

\u201cA lot of companies are making marketing plays on top of OpenAI\u2019s models, but you need to do more than put lipstick on an API,\u201d said Etzioni. \u201cAnd we\u2019re not trying to build a language model that\u2019s better than OpenAI\u2019s \u2014 let the multibillion-dollar companies duke it out. But what if I can make a model that\u2019s tuned to accounting, or public speaking? We see huge spaces, global problems that are underserved, OpenAI isn\u2019t going for it, and where someone can build a great company.\u201d<\/p>\n

\u201cWe do encourage our entrepreneurs to move at a faster pace, taking advantage of the tailwinds, to move faster and raise funds quicker, because competitors are not sitting still,\u201d said Vu Ha, also a technical director at AI2, but they\u2019re settling in for the long haul. \u201cThe recent waves of advances in AI are even more exciting in terms of future potential: there will be more new markets and opportunities created over the next two years, and no single organization will dominate that.\u201d<\/p>\n

Colker highlighted Comwave as an example of AI moving into an area large companies are unlikely to even be aware of, let alone pursue as a business opportunity: nurse burnout. Especially in the last few years, nurses have been quitting at much higher than normal rates, and part of that is inability at the hospital level to intelligently manage the workload of its staff. Comwave aims to provide early warnings for this, but of course \u201cno one is going to buy a bunch of AI on faith,\u201d Etzioni admitted.<\/p>\n

So the incubator has been shepherding the company through the gauntlet of studies, certifications and pilot studies that any medical software provider needs to navigate. AI2 has a strong network \u2014 one of the most important aspects of any such program \u2014 and this provides a nice knowledge base for thorny issues like entering a regulated or technically conservative market.<\/p>\n

Right now the AI2 Incubator is aiming at (and exceeding) a throughrate of five companies per year, though as Ha put it, \u201cwith the new fund, we do have the ability to deploy at larger scale.\u201d Still, the team sees no need to expand beyond seed-round companies: their expertise is at the early stage, and of course A rounds do tend to be a bit more expensive. $30 million is a lot of money, but when AI companies are raising hundreds of millions every few months\u2026 it\u2019s probably best to stick with what you know.<\/p>\n

The fund was backed by Madrona, Sequoia Capital, Vinod Khosla, Evergreen Ventures and \u201cother leading LPs.\u201d You know who you are!<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:
https:\/\/techcrunch.com\/2023\/05\/10\/ai2-incubators-new-30m-fund-triples-down-on-early-stage-ai-startups\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/10\/ai2-incubators-new-30m-fund-triples-down-on-early-stage-ai-startups\/ AI2 Incubator\u2019s new $30M fund triples down on early-stage AI startups 2023-05-10 22:37:00 The AI startup world may be getting hotter by the day, but there\u2019s a difference between a startup that uses AI and an AI-first startup \u2014 and the Allen Institute for AI prides itself on fostering the latter in its AI2 […]<\/p>\n","protected":false},"author":1,"featured_media":31714,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-31713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\nAI2 Incubator\u2019s new $30M fund triples down on early-stage AI startups - 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