(Bloomberg) — While most of the tech industry is struggling under the pressure of rising interest rates, it’s a booming time for artificial intelligence start-ups. Take Stability AI, which is in talks to popularize its Stable Diffusion image generator and raise funding at a valuation of $4 billion.
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Stability AI’s deal talks follow a $10 billion injection into OpenAI, as well as other major funding rounds this month. The dollar’s value is so high that it raises questions about whether the AI industry is in a bubble. Stability AI’s chief executive officer, Emad Mostaque, answered that question at Thursday’s conference. “Of course not,” he said. “This he is bigger than 5G and self-driving cars.”
Mostaque attended the Cerebral Valley Summit hosted by tech news Substack Newcomer and startup Volley Inc. The conference is named after San Francisco’s Hayes Valley neighborhood, home to several AI startups and their employees.
On Thursday, Mostaque was casual in a green T-shirt and Asics sneakers. He enthusiastically talked about his recent AI products, especially his GPT-4, the latest model of his OpenAI. GPT-4 is the follow-up to the AI model that originally underpinned the hugely popular ChatGPT chatbot. “I use GPT-4 every day,” he said. “The best therapist.” (He didn’t elaborate on what he was talking about.)
The CEO also touted the future of Stabilty AI, which continues to develop Stable Diffusion. “I’m going to an IPO,” he said. “I’m going to build him one of the biggest and best companies in the world.”
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