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Microsoft, Nvidia Lead $1.3 Bn Funding Round For Inflection AI

This significant investment, consisting of a combination of cash and cloud credit, has positioned Inflection AI's valuation at USD 4 billion

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Inflection AI, a promising startup in the field of artificial intelligence (AI), has successfully secured USD 1.3 billion in its latest funding round. The round was led by tech giants Microsoft and Nvidia, along with the participation of notable investors such as Reid Hoffman, Bill Gates, and former Google CEO Eric Schmidt.

This significant investment, consisting of a combination of cash and cloud credit, has positioned Inflection AI's valuation at USD 4 billion, according to a Reuters report.

Founded just one year ago by Mustafa Suleyman and Reid Hoffman, Inflection AI is looking to develop consumer-facing AI products. Its recently launched chatbot named Pi has been generating considerable interest. Utilising generative AI technology similar to OpenAI's ChatGPT, Pi engages users in dialogue, enabling them to ask questions, provide feedback, and benefit from its features such as planning, scheduling, and information gathering.

The Palo Alto-based startup, with a team of around 35 employees, previously raised USD 225 million in its initial funding round in early 2022, with support from Greylock, Microsoft, and Reid Hoffman. The additional USD 1.3 billion will primarily be utilised to bolster Inflection AI's computing capabilities in order to develop a more powerful foundation model.

Mustafa Suleyman, the CEO of Inflection AI, outlined the company's plans to build a cluster of approximately 22,000 H100s. This computing power, equivalent to three times the resources used to train OpenAI's GPT-4, will significantly enhance the speed and scale at which Inflection AI can develop its differentiated product offering. Suleyman made these announcements during his speech at the Collision Conference on Thursday.

The AI sector has been witnessing remarkable growth and attracting substantial investment as companies explore ways to integrate this transformative technology into their operations. Inflection AI's fundraising success, coupled with its strong emphasis on developing consumer-oriented AI products, positions it as a formidable rival to OpenAI.

Inflection AI recently released a report showcasing the capabilities of its model, Inflection-1, which powers the Pi chatbot. The company claims that its model has outperformed most available alternatives, indicating the potential impact of its technology on the AI landscape.

(Inputs from Reuters)