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Wednesday, 8 March 2023

Despite all the hype, investors are hesitant about pouring into generative AI + TikTok goes long-form

Wary investors question whether developments in AI will bring sizable returns. “Generative AI” tools such as OpenAI’s ChatGPT are generating a lot of excitement but several Silicon Valley VCs, fresh off a tech slowdown and slumping crypto valuations, are advising against investing in hyped-up startups, The Financial Times reports.

Funds have already begun flowing into the novel tech: Earlier this year, Microsoft confirmed that it made a “multiyear, multi-bn USD investment” in OpenAI, the company that created ChatGPT. Just last week, Character.ai received a USD 200 mn investment, led by Andreessen Horowitz, which pushed its valuation up to USD 1 bn. However, some skeptical VCs are skipping out on the investments, discouraged by sky high valuations and the enormous amount of resources and funds AI companies need to build foundation models — machine learning systems which require massive quantities of data and processing power to run.

So, when are they worth the investment? “Companies are extremely overvalued and the only justifiable investment thesis is to get in incredibly early,” one investor said. Another niche cohort can stand to make gains: companies/investors that have “nation-state level wealth” and are equipped to take on the undertaking of building foundation models.

TikTok is introducing Series, a new feature that allows creators to charge for a set of premium videos up to 20 minutes long each, the company announced in a blog post. Series enables qualifying creators to post Collections of premium videos that they can charge viewers to access. Creators can set a price for their collection that “best reflects the value of their exclusive content.”

The premium content “can be purchased for access via direct in-video links or through a creator’s profile.” One Series can include up to 80 videos, each up to 20 minutes long (double the 10-minute maximum length for regular TikTok videos). For a limited time, creators will receive the entirety of their Series earnings, after platform and processing fees, Variety reports, citing a TikTok representative. The new feature gives creators, who have long complained of low payouts from the platform’s Creator Fund, another way to monetize their content.

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