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Going open source can help you build a $1 billion AI company now

Nov 08, 2023 - businessinsider.com
AI startups are finding success through open source models, as demonstrated by Kai-Fu Lee's 01.AI and Mistral AI. Both companies achieved billion-dollar valuations in less than a year, with 01.AI reaching a $1 billion valuation eight months after launch and Mistral AI discussing a $400 million funding round at a $2 billion valuation. The open source approach allows these companies to be more transparent about their AI models and benchmark them more accurately against other models.

Support for open source AI has grown amid concerns that regulation could harm the open-source community. Companies like 01.AI have shown that their AI can outperform those from industry giants, with the Hugging Face leaderboard for pretrained models ranking 01.AI's Yi-34B model ahead of Meta's Llama 2 and Abu Dhabi's Falcon 180B. This trend suggests that entrepreneurs can build successful AI businesses without relying on Big Tech's billions or keeping their AI a secret.

Key takeaways:

  • AI companies like 01.AI and Mistral AI are achieving success by adopting an open-source approach, which is a departure from the closed approach used by companies like OpenAI.
  • Taiwanese startup 01.AI reached a $1 billion valuation in less than eight months after launch, and Paris-based Mistral AI is in discussions to raise around $400 million in funding at a valuation of at least $2 billion.
  • Open-source AI models, like 01.AI's Yi-34B, offer more transparency about the data they're fed and can be benchmarked more accurately against other AI models.
  • Support for open-source AI has grown amid concerns that potential regulation could harm developers in the open-source community.
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