Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Investing

AI startup Cohere to prioritize customized over larger models in enterprise push

By Krystal Hu

Canadian AI startup Cohere, last valued at $5.5 billion, will focus on building tailored models for enterprise users over larger foundation models, the company told Reuters.

The evolvement of its strategy, laid out in a company letter to its investors on Thursday, comes as many companies are still trying to figure out how to incorporate large language models into their daily work two years since ChatGPT burst onto the scene.

“What we’re hearing from customers is that they don’t just need bigger models to be good at everything. They need models that are actually built for their specific use cases,” Nick Frosst, co-founder of Cohere, said in an interview with Reuters.

Cohere, seen as a competitor to AI labs including OpenAI and Anthropic, says it will continue to develop foundation models, but will focus on other training techniques to improve models, instead of increasing model sizes. While selling Application Programming Interface (NASDAQ:TILE) (API) to its models will remain a small part of Cohere’s offering, the focus is on customized model deployment.

The race to build bigger and better models has fueled an investment boom from startups to big tech. OpenAI, Anthropic and xAI have raised billions to fund the capital-intensive development of frontier AI models.

Headquartered in Toronto and San Francisco, Cohere has raised over $900 million from investors including Nvidia (NASDAQ:NVDA), Cisco (NASDAQ:CSCO), and Innovia Capital.

Cohere has pitched itself as an enterprise focus AI company independent of cloud providers. It has been working directly with customers such as Oracle (NYSE:ORCL) and Fujisu to tailor models for specific needs.

Cohere’s new focus also comes as the industry that had seen breakthroughs by scaling computational power and model size, is seeing diminishing returns from bigger models. AI labs are facing delays in training the new generation of large language models. Ilya Sutskever, co-founder of AI labs Safe Superintelligence (SSI) and OpenAI, told Reuters recently that results from scaling up pre-training have plateaued.

Frosst said that simply increasing model size doesn’t always yield better results. The focus on customization could allow Cohere to be more capital-efficient, reducing the need for computational power. The company is not pursuing artificial general intelligence (AGI) like OpenAI.

“We’re going to work with an enterprise to figure out how we can make the model perfect at their use case, tailor it to that specific needs and get to production, not bank on the AGI future is coming next year,” Frosst said.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com