AlphaSense CEO Jack Cocco
alpha sense
Google’s heavy investment in artificial intelligence and the recent boom in generative AI goes beyond its own products.parent company alphabet I’m also putting money in to work in the startup world.
Alphabet’s late-stage venture capital arm, CapitalG, told CNBC it led a $100 million investment in the enterprise data firm. alpha sense, values the company at $1.8 billion. AlphaSense competes with companies such as: fact set Bloomberg provides business data to help inform company and investment strategies.
A funding round announced Tuesday surrounds OpenAI’s ChatGPT and other text generation tools that use generative AI, specifically large language models (LLMs), to provide creative and sophisticated answers to user queries. It follows months of hype. In February, Google introduced conversational technology called Bard. It integrates with the company’s leading search engine and other products.
AlphaSense CEO Jack Kokko said AlphaSense is working on a product feature that automatically summarizes financial documents to make it easier for customers to capture key takeaways. Summarization has long been a difficult task for AI software, but has improved significantly with the help of LLM.
Kokko founded AlphaSense in 2011. $225 million investment in June led by goldman sachs and Viking Global Investors.In that round, the valuation is 2021 funding It was led by the same investor.
Generative AI wasn’t talked about in the previous two rounds because the term hasn’t yet made its way into the popular lexicon. In a press release last year, AlphaSense said its platform uses “unique search technology” powered by AI and natural language processing to “extract relevant insights from a vast universe of public and private content.” said.
After late 2021, technology funding dried up as public company valuations plummeted and the IPO market froze. Generative AI was the only bright spot this year, and it bubbled quite a bit in some corners. In March, a two-year-old pre-revenue startup called Character.AI, founded by two former Google employees, raised $150 million at a $1 billion valuation in a round led by Andreessen Horowitz.
AlphaSense is even further ahead, with annual recurring revenue already exceeding $100 million in 2022. Cocco said the new capital will be used to hire additional salespeople as the company prepares to go public when the economy stabilizes. He said the funding will also help AlphaSense leverage advances in generative AI to improve its technology.
James LuoFor example, salespeople may be attracted to using products like AlphaSense if the interface is more intuitive.
Of potential new users, Luo says, “People who use Google search to try to find everything, but don’t have access to much of their own content.” We need something that makes it easier to understand that information.”
Yet modern LLMs suffer from what AI researchers call “hallucinations.” This refers to the tendency of software to generate inaccurate responses.
Kokko said AlphaSense is working on a technique to ensure that documents produce accurate summaries, including footnotes, so that people know where the information came from. While declining to identify a specific LLM, the company said it tests nearly every major model currently available.alphabet or metLike startups like OpenAI and Cohere, we developed LLM.
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