As the artificial intelligence landscape continues to evolve, two notable companies are making significant strides. OpenAI is in the process of launching a search-oriented product poised to challenge tech giants like Google and Bing. Meanwhile, Perplexity, a burgeoning force in the AI industry, is enhancing its market presence through strategic partnerships and a focus on global expansion.

The Rise of Perplexity

Founded by Aravind Srinivas, Perplexity has rapidly gained attention with its AI-first approach to knowledge engines. Recent weeks saw the company disclose plans for global expansion, particularly through partnerships with major telecommunications firms. The latest development in its expansion strategy involves a collaboration with SoundHound, a leader in voice AI technology.

This partnership, announced just yesterday, is set to integrate Perplexity’s advanced large language model (LLM)-driven capabilities into SoundHound’s Chat AI voice assistant. This move is expected to enhance user experience significantly by making the voice assistant more adept and responsive than ever before.

Dmitry Shevelenko, the Chief Business Officer at Perplexity, emphasized the impact of this integration: “Through this partnership, we’re one step closer to our goal of making Perplexity available on every device. With voice AI’s rising popularity, this makes accessing needed information easier and more intuitive for users everywhere.”

What This Means for SoundHound and Its Users

SoundHound, established over a decade ago, has been at the forefront of speech recognition and voice AI solutions across various industries. Its Chat AI, akin to Siri, allows users to engage in dialogue and obtain straightforward answers. It pulls real-time data on numerous topics like weather, sports, and restaurants, and synthesizes this with static large language models to deliver comprehensive responses.

The integration of Perplexity’s online LLMs with Chat AI marks a significant enhancement. These models, which inherently surf the web to pull the most current and useful information, will allow Chat AI to address even more complex, time-sensitive questions than before.

For example, a user could ask, “How does this week’s gas price compare to last week?” The enhanced Chat AI would provide an accurate, live update on gas prices and a detailed comparison with the previous week. This query could be followed by a command like, “Navigate to the nearest gas station,” to which SoundHound would seamlessly provide directions using the most relevant data.

The Technical Edge: Perplexity’s LLM Options

Perplexity currently offers two sizes of its online LLMs: pplx-7b-online and pplx-70b-online. While SoundHound has not specified which models it will employ, the capabilities these models bring to the table are significant.

Table: Comparison of Perplexity’s LLM Models

Future of Voice Assistants

With the integration of Perplexity’s search capabilities, SoundHound’s Chat AI is positioned to become a top contender in the realm of generative AI-powered voice assistants, rivalling Google Assistant and Alexa. This technology is already deployed in over 12 countries and supports 18 languages with Stellantis in the automotive sector.

Mike Zagorsek, COO of SoundHound AI, shared his enthusiasm: “By integrating these advanced search capabilities, we are not only enhancing the functional range of our voice assistants but also improving user engagement. As more people opt for voice interactions over typing, we anticipate a significant uptick in usage.”

Industry Impact and Consumer Trends

Both Google and Amazon have announced plans to upgrade their voice assistants with generative AI models, although these enhancements have not yet been rolled out globally. Apple is also expected to introduce an improved AI-driven version of Siri.

Key Takeaways:

• Strategic Partnerships: Perplexity’s collaboration with SoundHound extends its reach and enhances its market presence.
• Enhanced Capabilities: The integration with SoundHound’s voice AI will allow more complex and timely queries to be handled efficiently.
• Broader Impact: This partnership signals a shift towards more dynamic, conversational capabilities in voice AI technology.

As AI technology advances, the implications for everyday technology use are profound. Perplexity’s strategic movements, especially its partnership with SoundHound, not only expand its operational horizons but also redefine how we interact with devices in our interconnected world.

In a significant advancement for brain-computer interface (BCI) technology, Neurable, a Boston-based neurotechnology firm, has successfully raised $13 million in a recent funding round. This injection of capital is aimed at accelerating the development and commercialization of Neurable’s groundbreaking BCI AI technology across various industries.

Transforming Neurotechnology

The funding round saw participation from several prominent venture capital firms including Ultratech Capital Partners, TRAC, Pace Ventures, and Metaplanet, highlighting the growing investor interest in innovative neurotechnologies. Since its inception, Neurable has raised over $30 million, demonstrating strong support for its vision to make BCI technology a staple in everyday products.

Funding Overview:

• Total Raised to Date: $30 million+
• Recent Funding: $13 million
• Key Investors: Ultratech Capital Partners, TRAC, Pace Ventures, Metaplanet

Neurable’s mission is to democratize access to advanced neurotechnology. The company plans to use the latest funds to expand its platform technology and scale its licensing business. This strategic move is expected to catalyze further development and experimentation in a variety of applications, making BCI technology more accessible to consumer audiences.

Strategic Objectives Post-Funding:

• Advance Platform Technology: Enhance the core technology for broader applications.
• Scale Licensing Business: Expand partnerships across multiple industries.
• Broaden Consumer Reach: Make non-invasive BCI technology widely available.

The company’s CEO, Ramses Alcaide, expressed his enthusiasm about the funding, stating, “This new round of funding underscores our commitment to making Neurable’s brain-computer interface technology accessible to everyone. We’re empowering individuals to understand their own mind, optimize human performance, and conquer the most pressing health challenges of our generation.”

Product and Platform Expansion

With the fresh capital, Neurable intends to continue expanding its platform, which provides companies and original equipment manufacturers (OEMs) access to its non-invasive BCI technology. This includes expanding its product portfolio, reference designs, algorithms, and enabled systems to encompass a wider range of products such as earbuds, helmets, and various head-worn devices designed to optimize human performance.

Key Products and Technologies:

• MW75 Neuro Headphones: AI-powered BCI-enabled headphones set to launch this summer.
• EEG AI Technology: Compact and powerful technology optimized for everyday use.
• Enabled Systems: Expansion to include earbuds, helmets, and other head-worn devices.

Dale Davis, a senior principal at Ultratech Capital Partners, emphasized the potential of Neurable’s technology, remarking, “Neurable’s transformative neurotechnology is at the forefront of the BCI revolution. BCI technology has gained significant momentum over the years, and its advancement shows no signs of slowing down. Neurable’s BCI has the potential to solve a range of vexing issues — from healthcare to daily life. BCI integrated into our devices, and a critical part of our everyday experience was once the stuff of science fiction — thanks to Neurable, that dream will soon be a reality.”

Collaborative Efforts and Future Aspirations

Founded as a University of Michigan spinout, Neurable has continually sought to collaborate with leading entities in both the private and public sectors. Following its Series A funding in 2020, Neurable partnered with consumer wearable companies, including headphone company Master & Dynamic, to embed EEG sensors into everyday technologies.

The partnership is set to introduce the first-ever BCI-enabled headphones, the MW75 Neuro, marking a significant milestone in consumer-accessible neurotechnology. Additionally, following Series A, Neurable collaborated with the Air Force Research Lab’s 711 Human-Performance Wing to validate and refine its technology for enhancing human performance.

Building on this successful collaboration, Neurable secured $5 million in contracts from the Department of Defense to further develop this cutting-edge human technology to support soldier health and performance.

Adam Molnar, cofounder and vice president of strategic partnerships at Neurable, shared his excitement about the partnerships, stating, “We’re extremely proud to work with our partners, which include some of the world’s best in consumer technology like Master & Dynamic as well as the very servicemen and women who make sacrifices on a daily basis for the overall security of our nation. This is just the beginning. We can’t wait to show you what’s coming next.”

As Neurable continues to push the boundaries of what is possible with neurotechnology, its recent funding round not only validates its past achievements but also sets the stage for an exciting future of innovation and widespread application of BCI technology.

Espresso AI, a Silicon Valley-based artificial intelligence startup, recently emerged from stealth mode, announcing that it has successfully raised over $11 million in seed funding. This substantial financial backing aims to address one of the most pressing challenges in enterprise computing: controlling spiraling cloud costs.

Funding and Support from Industry Leaders

The funding rounds include a seed round led by prominent investors Daniel Gross and Nat Friedman, complemented by a pre-seed round spearheaded by Matt Turck at FirstMark. These rounds also saw participation from a cohort of industry leaders, signaling robust confidence in Espresso AI’s potential to revolutionize cloud cost management.

Innovative Technology to Slash Cloud Costs

At the core of Espresso AI’s innovative approach is its groundbreaking technology, leveraging advanced language models and machine learning to automate code optimization. This technology is specifically designed to reduce cloud compute costs by up to 80%. Initially, the company has focused on optimizing SQL queries for Snowflake, a leading cloud data warehousing platform.

Ben Lerner, the founder and CEO of Espresso AI, in an exclusive interview with VentureBeat, highlighted the vast potential of their solution. “Snowflake alone has $2 billion in annual revenue. Across the broader data warehousing landscape, we see potential revenue in the hundreds of millions for us and billions in possible savings for our customers,” Lerner explained.

The Growing Crisis in Cloud Costs

As more enterprises move to cloud platforms, they encounter new challenges related to cost control and visibility. This transition has often resulted in unexpectedly high bills and difficulties in forecasting and managing expenditures. Data warehousing has become particularly problematic, as it consumes significant cloud resources, and optimizing these workloads for cost and performance has been notoriously difficult.

During discussions, Lerner emphasized, “Users consistently mention Snowflake as their second largest expense following AWS. At Snowflake events, the focus is heavily on cost and performance.”

Table: Financial Overview of Espresso AI’s Seed Funding

AI-Driven Solutions for Code Optimization

Espresso AI’s strategy involves utilizing large language models (LLMs), foundational technology behind phenomena such as ChatGPT, to tackle code optimization challenges. These models are trained to deeply understand SQL queries and database architectures, enabling the platform to automatically refactor queries for enhanced efficiency.

The process involves continuous analysis of queries executed against the data warehouse, identifying optimization opportunities through a blend of natural language processing, program synthesis, and reinforcement learning. The technology then rewrites queries on-the-fly, enhancing performance and minimizing compute usage.

Lerner notes the power of automation in this domain: “The strength here is that unlike traditional applications requiring manual checks for accuracy, our optimized code is automatically verified for correctness, focusing solely on speed enhancement.”

Simplified Integration and Future Plans

Setting up Espresso AI is designed to be straightforward, operational in under 10 minutes by altering a single connection string. “It’s as easy as changing a URL,” Lerner said. “You simply redirect your BI and analytics tools to our endpoint instead of directly to Snowflake, and we manage the rest.”

Bullet Points: Key Features and Benefits of Espresso AI

• Advanced AI Technology: Utilizes LLMs for deep learning and understanding of database queries.
• Significant Cost Reduction: Capable of cutting cloud compute costs by up to 80%.
• Easy Setup: Integration in less than 10 minutes with minimal configuration.
• Continuous Optimization: Automatically refactors queries to improve efficiency.
• Scalability: Initially compatible with Snowflake, with plans to extend to other SQL data warehouses like Databricks.

Looking ahead, Espresso AI is poised for rapid growth, planning to use its funding to accelerate product development and market entry strategies. While the initial focus remains on Snowflake, the company’s roadmap includes expanding its AI optimization engine to cover additional SQL data warehouses and eventually broader computing needs.

As the computing world contends with financial constraints and the demand for digital transformation, technologies like those offered by Espresso AI that deliver substantial cost savings without compromising performance will undoubtedly attract significant attention from CIOs and IT leaders. If successful, Espresso AI could redefine efficiency in cloud computing, making it as essential as a morning cup of coffee for IT departments everywhere.

In the dynamic world of venture capital (VC), the hunt for liquidity is intensifying, creating a ripple effect in the secondary market. Despite the soaring valuations of startups and VC funds, the lack of initial public offerings (IPOs) has hampered cash flow for investors. This challenge has catalyzed a surge in secondary sales, where cash-hungry venture capitalists are seeking to offload their illiquid positions to eager secondary buyers.

A recent survey among investors pinpointed the primary challenge facing venture capital today: the scarcity of liquidity. Investments in startups or VC funds, despite their appreciating values, are failing to translate into tangible cash returns due to the absence of IPOs. Private investments, unlike their public market counterparts, lack the flexibility of readily trading shares. The process of selling shares in private companies, particularly startups, necessitates authorization from the companies themselves and approval from secondary buyers.

In response to this liquidity crunch, venture investors, whether individual VCs or their limited partners, are increasingly exploring avenues to divest their illiquid positions. Enter the secondary market, where a unique opportunity has emerged amidst the fallout of overvalued early-stage startups from the fundraising frenzy of yesteryears. This scenario has paved the way for astute investors to acquire stakes in seed-stage VC funds and startups at relatively discounted rates.

Today marks a significant development in the realm of venture capital as Cendana Capital, alongside partner Kline Hill Partners, unveils the $105 million Kline Hill Cendana Partners fund. Initially targeting a raise of $75 million, the fund’s oversubscription underscores the palpable interest among investors in seizing opportunities within the secondary market.

Michael Kim, founder and managing director of Cendana Capital, underscores the rationale behind this strategic move, citing the burgeoning demand from portfolio funds eager to offload their commitments. Recognizing the expertise required to navigate the intricacies of secondary investments, Kim forged a strategic alliance with Kline Hill, pooling resources to capitalize on the buyer’s market.

What sets Kline Hill/Cendana’s investment vehicle apart is its focus on acquiring secondary interests in seed-stage firms and individual companies from seed funds. Unlike traditional secondary players, which predominantly target larger opportunities, this partnership is uniquely positioned to tap into the untapped potential of the seed-stage ecosystem.

Central to the success of this joint venture is the symbiotic relationship between Cendana Capital and its portfolio funds. Leveraging its extensive network, Cendana identifies and vets potential secondary deals, subsequently passing them on to Kline Hill for valuation, underwriting, and negotiation.

Chris Bull, a managing director at Kline Hill, emphasizes the symbiotic nature of the partnership, highlighting the value of Cendana’s insights in streamlining the investment process. This collaborative approach not only enhances deal flow but also facilitates smoother transactions, bridging the gap between opportunity and execution.

With a firm commitment to deploying the entire $105 million fund by the end of 2024, Kline Hill/Cendana is poised to capitalize on the burgeoning demand for secondary venture stakes. The success of this venture is poised to set the stage for future collaborations, with discussions already underway for a successor fund in the coming year.

The venture capital landscape is witnessing a paradigm shift, with traditional secondary investors ramping up their allocations to VC-focused funds. Notable players such as Lexington Partners and Blackstone have recently raised record-breaking secondary funds, signaling a growing appetite for venture assets.

While billion-dollar funds traditionally focus on larger, multi-stage firms, Kline Hill/Cendana’s emphasis on the seed stage represents a novel approach to secondary investing. As VC-backed companies prolong their stay in the private domain, the demand for liquidity is expected to soar, creating a fertile ground for innovative investment strategies.

As the venture capital landscape continues to evolve, the secondary market emerges as a beacon of opportunity for savvy investors. With Kline Hill Cendana Partners Fund at the forefront of this paradigm shift, the stage is set for a new era of liquidity-driven growth in the venture capital ecosystem.