Artificial intelligence (AI) is a rapidly growing industry, but the training data used to develop AI algorithms can be spurious and unreliable. Startups are working to build datasets trained exclusively on licensed data, while human artists are upset that big-name studios are using AI to generate art. Evaluating training data is also challenging, as Mechanical Turk workers – who are supposed to be human workers doing tasks that machines cannot do – are reportedly using AI tools themselves. This can be problematic if the data they generate is meant to be used as a rubric for measuring the effectiveness of AI tools. Additionally, Amazon’s AWS is investing $100 million in generative AI initiatives.
Startups are known for moving fast and breaking things, but life-or-death critical equipment should not be included in that category. This was highlighted when a submersible owned by OceanGate imploded, killing its five passengers and raising questions about the role of whistleblowers in startup companies. The operations director-turned-whistleblower claimed that the sub’s carbon fiber hull was not rated for Titanic depths.
Battery manufacturing is an important area for transportation, and Volkswagen has made a breakthrough in this area. Up to fifty percent of the energy needed to produce a lithium-ion cell is used in the drying process of certain components of the battery cell. Volkswagen has come up with a new process that eliminates this requirement, considerably reducing the cost and time involved in creating batteries for electric vehicles.
As computer hacking becomes increasingly prevalent, there are more and more opportunities for startups to create security solutions. More sophisticated hackers and increasing exploration of computer security exploits, such as the recent MOVEit mass-hacks, are examples of why cybersecurity companies are needed. It is surprising that VCs are not funding the current generation of cybersecurity startups.
Fintech continues to be a growing industry, and recent investments include Paro, which raised $25 million to match independent financial experts with firms, Volt, an open banking fintech company that secured a huge round at a valuation north of $350 million, and Majority, a digital bank for US migrants that closed almost $10 million as it expands operations in Texas. Once a fintech company gains traction and a customer base, there is always the possibility of M&A-hungry multinational giants purchasing them.
VCs evaluate startups based on market size, the quality of the team, and the viability of the startup’s plans. These evaluations can be used to form a strategy to attract investors.
In tech news, Google’s new Pixel Tablet is struggling to compete against Apple’s iPad Pro-looking, entry-level iPads. Netflix launched a website based on the fictional streaming service from Black Mirror, called Streamberry. Microsoft is also looking to build a quantum supercomputer within 10 years.
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