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Daily Digest: OpenAI acquires another startup

PLUS: New hope for Stability AI

June 24, 2024

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Hello folks, here’s what we have today;

PICKS

  1. New tutorial with Claude Artifacts: How to create landing pages from screenshots.

  2. OpenAI has acquired Rockset, a company specializing in real-time data analysis, to improve its AI's ability to find and use information. Rockset builds data indexing and querying tech i.e. backbone for better RAG. This acquisition brings both, Rockset’s tech and team, to OpenAI. The question is how many startups can get such exits.

  3. Stability AI gets a new CEO and a lifeline. The open-source AI darling that once hit a $1B valuation has been hitting some serious speed bumps since. But there’s a new push to put it back on track with the new CEO, Prem Akkaraju.🍿Our Summary (also below)

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  • Claudette - Making Anthropic’s SDK more friendly.

  • Groqnotes - Generate organized notes from audio.

  • Prompt2UI - Open source version of artifacts from claude.

  • Make Podcast - Effortlessly craft professional podcasts in minutes using AI.

  • BuildSpace Sage - A place to find dope people building cool stuff.

  • Omni AI - Deploy AI applications on your infrastructure.

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NEWS

Unclassifieds - short, sponsored links

  • 😎 Kerplunk - Never pay another recruiter with our AI-powered video interviewer 👉 First 50 interviews free, here.

QUICK BITES

It's been a wild ride for Stability AI, the open-source AI darling that hit a $1 billion valuation before hitting some serious speed bumps. But now, they've got a new CEO and a much-needed cash injection to right the ship.

What's going on here?

Stability AI is getting a new CEO, Prem Akkaraju, formerly of Weta Digital. He's part of an investor group led by Sean Parker (yep, the Napster and Facebook guy) that's bailing out Stability AI with fresh funding.

What does this mean?

For a company that made less than $5M in revenue and lost over $30M in Q1 alone, this is a vital lifeline. But it comes at a cost - a likely lower valuation and a shrinking of existing investors' stakes (unless they pony up more cash).

Stability AI has already raised over $100M from big names like Coatue and Lightspeed. But now Parker and crew are stepping in to "recap" the company, restructuring the cap table to get preferential terms and a big stake for saving the day.

The new CEO and chairman could help Stability AI finally turn its well-known brand into real revenue from entertainment and media companies. They sell AI image generation subscriptions but have struggled to gain traction.

Why should I care?

Stability AI has been a major player with a lot of hype. But hype doesn't pay the bills, and they've struggled to convert buzz into a real business. Reality check: turning open-source AI into a profitable company is challenging.

This shakeup and bailout could give them a second chance. For existing investors, employees, and partners, it's a big change and a bit of a comedown from that $1B valuation. But hey, at least they're still in the game.

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