Generative AI news roundup

Article by Gadjo Sevilla | Mar 10, 2023

Microsoft’s AI-powered Bing has 100 million users

The news: Microsoft’s Bing search engine is experiencing a renaissance in usage thanks to its OpenAI-powered chat feature, per Gizmodo.

Microsoft celebrated its 100 million daily active user milestone this week.
Bing has registered more than 45 million chats since the preview began February 7.

Our take: While 100 million active Bing users is a far cry from Google’s 1 billion daily active user count, it places Microsoft in the ongoing race to dominate generative AI.

AI startup Anthropic raises $300 million to compete against ChatGPT

The news: Anthropic, which was founded by former OpenAI executives, raised another $300 million, putting the company’s valuation at $4.1 billion, per The Information.

Google was an early stakeholder, investing $400 million and taking a 10% stake,
Anthropic’s AI chatbot, Claude, was focused primarily on safety and ethics, but the company is now reportedly pivoting toward commercial opportunities.

Our take: Expect continued investments in generative AI startups. The segment raised $920 million in 2022—up 35% YoY, according to Pitchbook data.

Baidu is a week away from launching its ChatGPT competitor

The news: Baidu, which is acknowledged as China’s answer to Google, is sprinting to prepare its AI-powered chatbot, Ernie, but is reportedly struggling to get it to perform basic functions, per The Wall Street Journal.

There’s intensifying pressure for companies in China to match or surpass technologies like popular generative AI.
The search giant is scrambling to catch up with the likes of Google and Microsoft, as well as Chinese startups in the AI space.

Our take: Baidu has one opportunity to take the lead in generative AI, at least in China. News of Ernie’s struggles has already led to shares falling 4%, per Seeking Alpha.