Technology
The year is coming to an end and startups are not resting
With only just a few days left within the year, there was loads of startup news since last Friday, despite the short work week within the U.S. due to Thanksgiving. Oh, by the best way, thanks for reading.
The most interesting startup stories of the week
If you are on the lookout for some weekend reading, here are some recent insights value trying out.
On the clock: The timing of ServiceTitan’s IPO may not be entirely depending on market conditions. The details show that the software company was in no hurry to go public, and there could also be more such corporations, VCs told TechCrunch.
Salary indicators: The US government procurement database USASpending.gov reveals the whole compensation that Anduril, a defense technology startup, pays its top employees. While there are some technical details about breaking it down by year, the underside line is that it pays really, rather well.
New faces: Scaling startups is a giant priority for the European Union’s recent top team, which incorporates three lawmakers accountable for key areas of technology policy. Among them is Ekaterina Zaharieva, who shall be the EU Commissioner for Startups, Research and Innovation.
Attack of the Clones: It’s not just AI code editors: Y Combinator often supports startups that construct similar products, data analytics startup Deckmatch has discovered. The study also reveals other interesting insights into the sorts of startups YC tends to accept.
The most interesting collections this week
Fundraising season is not over yet, and offers of various sizes have been announced again this week.
DTC glasses: Eyewa, an organization that sells a big selection of eyewear products through its e-commerce and direct-to-consumer retail platform in five Middle Eastern markets, has secured a $100 million Series C round led by General Atlantic.
The cradle of affection: Cradle, a startup that uses artificial intelligence to design proteins, has raised $73 million to expand its labs and team. Launched in 2022, it previously raised a $24 million Series A round in 2023.
Shopify for gaming: Israeli startup Appcharge, which sees itself as a form of “Shopify” for games and provides game developers with more monetization opportunities, has raised $26 million. The round was led by Nordic VC Creandum at a valuation of $100 million.
Voice clones: Y Combinator alumnus PlayAI, which clones voices on command, has closed a $21 million seed round co-led by 500 Startups and Kindred Ventures to spend money on its AI generative voice models and voice agent platform.
Hello Dr. Google: Roon raised $15 million, co-led by Forerunner Ventures and Firstmark, with participation from former investors Sequoia Capital and TMV. A health technology startup currently valued at $68 million intends to replace “Doctor Google” with video questions and answers from doctors.
The most interesting VC and funding news this week
Build your legacy: Basketball player Giannis Antetokounmpo founded a VC firm. According to reports, the corporate called Build Your Legacy Ventures will concentrate on sports and entertainment investments.
Cyber Accelerator: Early-stage fund Cleo Capital announced the launch of a cybersecurity accelerator that may support up to 10 pre-seed and seed startups. They will each receive $250,000 in exchange for 7% equity and participation on this distant 12-week program.
No less vital
Fintech in Latin America shall be value watching in 2025, and data for 2024 shows that the market is starting to turn around. “I believe the region is underfunded after the (post) 2021 adjustment.” – QED Investors partner Mike Packer told TechCrunch.
Technology
Canadian news organizations sue OpenAI
A gaggle of Canadian news and media firms filed a lawsuit Friday against OpenAI, alleging that the creator of ChatGPT infringed their copyrights and unjustly enriched himself at their expense.
The firms behind the lawsuit include the Toronto Star, Canadian Broadcasting Corporation, Globe and Mail and others, who’re searching for monetary damages and a ban on OpenAI from continuing to make use of their work.
The news firms said OpenAI used content pulled from their web sites to coach large language models that support ChatGPT — content that’s “the product of enormous time, effort and costs incurred by the News Media Companies and their journalists, editors, and staff.”
The firms wrote of their lawsuit that “instead of seeking to obtain the information legally, OpenAI chose to brazenly appropriate the valuable intellectual property of the News Media companies and transform it for its own purposes, including commercial purposes, without consent or compensation.”
OpenAI also faces copyright lawsuits from The New York Times, New York Daily News, YouTube creators and authors including comedian Sarah Silverman.
Although OpenAI has signed licensing agreements with publishers corresponding to The Associated Press, Axel Springer and Le Monde, the businesses behind the brand new lawsuit said they “never received any form of remuneration, including payment, from OpenAI in exchange for OpenAI’s use of their factory.” “
An OpenAI spokesman said in an announcement that ChatGPT is utilized by “hundreds of millions of people around the world… to improve their everyday lives, inspire creativity and solve difficult problems” and that its models are “trained on publicly available data, based on fair use and related international copyright rules which can be fair to creators and support innovation.”
“We work closely with news publishers, including displaying, attributing and linking to their content on the ChatGPT search engine, and offering them easy ways to opt-out if they wish to do so,” the spokesperson said.
The latest lawsuit comes shortly after Columbia University’s Center for Digital Journalism released a study that found that “no publisher – regardless of their degree of affiliation with OpenAI – was spared from inaccurately representing their content on ChatGPT.”
Technology
ChatGPT’s citation study makes for grim reading for publishers
As more publishers end their content licensing agreements with ChatGPT developer OpenAI, a test posted this week by Towing Center for Digital Journalism — how an AI chatbot creates citations (i.e. sources) for publishers’ content — makes for interesting or, well, disturbing reading.
In short, the findings suggest that publishers remain on the mercy of a generative AI tool’s tendency to invent information or otherwise misrepresent it, whether or not they allow OpenAI to index their content or not.
A study from the Columbia Journalism School examined citations produced by ChatGPT after asking it to discover the source of sample citations from various publishers – a few of which had contracts with OpenAI and others who didn’t.
“We selected citations that, when pasted into Google or Bing, resulted in the source article being in the top three results and assessed whether the new OpenAI search engine would correctly identify the article that was the source of each citation,” Tow researchers Klaudia Jaźwińska and Aisvarya Chandrasekar wrote in blog post explaining your approach and summarizing your findings.
“What we found did not make news publishers feel optimistic,” they proceed. “While OpenAI emphasizes its ability to provide users with “timely responses that include links to appropriate online sources,” the corporate makes no express commitment to make sure the accuracy of those citations. This is a noticeable omission for publishers who expect their content to be referenced and accurately represented.”
“Our tests showed that no publisher – regardless of their level of affiliation with OpenAI – was spared from inaccurate representation of their content in ChatGPT,” they added.
Unreliable source
Researchers say they found “numerous” cases where ChatGPT misquoted publishers’ content, also finding what they call “response accuracy ghosting.” So, while they found “a few” completely correct quotes (i.e. ChatGPT accurately returned the publisher, date, and URL of the shared quote), there have been “many” quotes that were completely unsuitable; and “some” that fall somewhere in between.
In short, ChatGPT quotes appear to be an unreliable mix. The researchers also found only a few cases where the chatbot didn’t show complete confidence in its (erroneous) answers.
Some quotes come from publishers who actively blocked OpenAI search bots. Scientists say they expected problems with creating correct citations in such cases. However, they found that this scenario created one other problem – the bot “rarely” “admitted that it was unable to provide an answer.” Instead, he returned to confabulation to generate some sources (albeit incorrect sources).
“In total, ChatGPT returned partially or completely incorrect responses in 153 cases, although it only confirmed the inability to accurately answer the query seven times,” the researchers said. “Only for these seven results did the chatbot use qualifying words and phrases resembling ‘it seems’, ‘it’s possible’ or ‘perhaps’ or statements resembling ‘I could not locate the precise article.’
They compare this unlucky situation to a regular Internet search, where serps like Google or Bing typically either locate the precise quote and point the user to the web site where they found it, or state that they found no results with an actual match.
“ChatGPT’s lack of transparency around trust in responses may make it difficult for users to assess the validity of a claim and understand which parts of the response they can and cannot trust,” they argue.
They suggest that publishers may additionally face reputational risk from incorrect citations, in addition to business risk from sending readers elsewhere.
Decontextualized data
The study also highlights one other issue. This suggests that ChatGPT may essentially reward plagiarism. Researchers cite a case through which ChatGPT misquoted an internet site that plagiarized “deeply reported” New York Times journalism, i.e., by copying and pasting text without attribution because the source of a NYT article – speculating that in such a case, the bot could have generated this false answer to fill the data gap resulting from the lack to look the NYT website.
“This raises serious questions about OpenAI’s ability to filter and check the quality and authenticity of data sources, especially for unlicensed or plagiarized content,” they suggest.
An additional finding that could be of concern to publishers who’ve signed deals with OpenAI is that of their case ChatGPT quotes weren’t at all times reliable either – so letting in bots doesn’t seem to ensure accuracy either.
The researchers argue that the elemental issue is that OpenAI’s technology treats journalism “as context-free content,” apparently whatever the circumstances of its creation.
Another issue noted within the study is the variation in ChatGPT responses. The researchers tested asking the bot the identical query multiple times and located that it “usually returned a different answer each time.” While that is typical of GenAI tools, generally, within the context of citations, such inconsistency is clearly suboptimal in case you care about accuracy.
While Tow’s study was conducted on a small scale – the researchers acknowledge that “more rigorous” testing is required – it’s nevertheless noteworthy given the high-level deals that major publishers are busy making with OpenAI.
If media corporations had hoped that these arrangements would result in special treatment for their content in comparison with competitors, at the least when it comes to ensuring accurate sourcing, this study suggests that OpenAI has not yet ensured such consistency.
While publishers who do not have licensing agreements also block OpenAI bots entirely – perhaps in hopes of at the least increasing traffic when ChatGPT returns content related to their articles – the study can be bleak since the citations might not be accurate of their content. cases too.
In other words, there is no such thing as a guarantee of “visibility” for publishers on OpenAI’s search engine, even in the event that they allow their crawlers to achieve this.
Blocking robots completely doesn’t mean that publishers can protect themselves from reputational risk by avoiding any mention of their articles on ChatGPT. The study found that the bot continued to incorrectly attribute articles to the New York Times, for example, despite the continuing lawsuit.
“Small significant agency”
The researchers concluded that, because it stands, publishers have “little meaningful influence” over what happens to and with their content once ChatGPT gets its hands on it (either directly or, well, not directly).
OpenAI’s response to the research results appeared in a blog post, accusing researchers of conducting an “unusual test of our product.”
“We support publishers and creators by helping ChatGPT’s 250 million weekly users discover high-quality content through summaries, citations, clear links and attributions,” OpenAI also told them, adding: “We have worked with partners to improve the accuracy of in-line citations and respect publisher preferences , including enabling a way for them to appear in search by managing OAI-SearchBot in their robots.txt file. We will continue to improve search results.”
Technology
As Cohere and Writer Explore the ‘Living AI’ Arena, Pathway Joins the Group with a $10 Million Round
As large enterprises struggle to include AI into their platforms and processes, they’ve run into a problem: Generative AI should have memory and its training data should be consistently updated to be of any practical use. This area is currently called “Live AI” and many startups operate in it, including: Cohere AND Writer. Other, Pathjust raised a $10 million seed round to construct working artificial intelligence systems that the company says think and learn in real time like humans.
The round was led by TQ Ventures, with participation from Kadmos, Innovo, Market One Capital, Id4 and business angels. Another investor in Pathway is Łukasz Kaiser, co-author Transformers and key researcher behind GPT o1 from OpenAI.
Pathway’s offering includes so-called “infrastructure components” that power running AI systems and feed structured and unstructured data, meaning enterprise AI platforms could make decisions based on up-to-date knowledge. Current clients include NATO and the French post office La Poste.
Zuzanna Stamirowska, co-founder and CEO of Pathway, told TechCrunch on a call: “The way deep learning assistants and LLM work is that you take training data and then train models. But the question is: how to deal with knowledge, how to deal with memory? At this point, the LLM is behaving a bit like a very smart intern on his first day of work who has been offered a book to read. But they can’t actually remember it. Besides, it’s not live, it’s static.”
To address this, she said Pathway “enables developers to build a pipeline through which they can feed live data into AI systems.” Right now, we’re doing this in the prompting stage whenever you’re constructing LLM applications or Gen AI applications.
Stamirowska — who’s moving to Menlo Park, California — has assembled a formidable, highly technical team to attain the startup’s goals. Its co-founders are CSO Adrian Kosowski and CTO Jan Chorowski, who previously worked with recent Nobel Prize winner in physics and “godfather of artificial intelligence” Geoff Hinton. Stamirowska herself is the writer of a cutting-edge forecasting model for the complex network occurring in maritime trade, published by the US Academy of Sciences.
“The company started with an idea that popped into my head one sunny morning in Chicago,” she said. “I used to be there accompanying a friend to a research conference on theoretical computer science… We had an argument and I said I had to begin with myself. So I took out my laptop and began writing to people in my network about move things forward. I still remember the taste of coffee from that moment.
I asked her where she sees Pathway in comparison with other startups in the space? “For applications in GenAI engineering and knowledge management, Cohere and Writer appear alongside us in Gartner’s newest quadrants,” she said. “Whereas in enterprise deals we often see Palantir bidding on AI transformation, although they are less product-oriented than we are.”
Commenting in a statement, Schuster Tanger, co-managing partner and co-founder of TQ Ventures, said: “Zuzanna and the Pathway team have cutting-edge knowledge and expertise in one of the most exciting areas of business today… The recent, and almost at least, response from the developer community has been powerful.”
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