Glenn's Weekly Digest - 3/1/24
Your Weekly Guide to the Startup Universe: Navigating the World of VC & Startups for Students
Stories of the Week
Google's AI Faces a Search for Solutions
Google CEO calls AI tool’s controversial responses ‘completely unacceptable’ [Semafor]
Google CEO Sundar Pichai addressed the backlash surrounding the Gemini AI app, which generated controversial responses and images related to race, leading to accusations of bias. Pichai acknowledged the unacceptable nature of these incidents and pledged to implement structural changes and improve the app's guardrails to prevent future biases.
Why it matters: Google has faced criticism over its AI chatbot, Gemini, initially for not generating images of white people and now for its biased text responses. The chatbot has controversially compared Hitler's impact to Elon Musk's tweets, refused to promote meat, and declined to support fossil fuels, sparking accusations that Google's internal culture is overly influenced by left-leaning ideologies. Despite an apology for "missing the mark," the criticism towards Google continues to evolve and intensify.
Why’d this happen? Google's efforts to address biases and fine tune its models in its AI chatbot led to unintended overcorrections, resulting in the generation of inappropriate and embarrassing images. Facing significant backlash and negative press, Google temporarily deactivated Gemini's image-generation feature in an attempt to mitigate the controversy and address the underlying issues.
What’s next? Google acknowledges the need for significant improvements in Gemini's image generation capabilities and will attempt to rectify the situation, particularly regarding depictions of people, and plans extensive testing to address this issue. However, the company advises users to approach Gemini's outputs with skepticism, especially for current events or sensitive topics, and suggests using Google Search as a more reliable source for information.
Snowflake's Forecast: A New Leader
Snowflake says Frank Slootman is retiring as CEO [CNBC]
Frank Slootman, the billionaire CEO of Snowflake, announced his retirement, with former Google ad chief Sridhar Ramaswamy set to replace him. Under Slootman's leadership since 2019, Snowflake became public in 2020, marking the largest software IPO ever. Ramaswamy, known for his 15-year tenure at Google and co-founding the search engine Neeva, takes over as Snowflake aims for growth in AI and machine learning.
How big of a deal is this? The transition caused Snowflake's shares to fall by 24% in extended trading. Despite reporting a 32% increase in sales for the fourth quarter, Snowflake's financial outlook disappointed analysts, contributing to concerns over its future performance. Slootman will continue as chairman of the board, maintaining significant involvement in the company, but a 24% drop due to one individual is a sign his retirement is a significant loss.
How was this last quarter? In 2023, Snowflake experienced a significant deceleration in revenue growth as many organizations reduced their software expenditures. This phenomenon, known as cost optimization, impacted other cloud service providers, including Amazon and Microsoft . However, these leading companies in the cloud computing and storage sector have recently indicated a decrease in such cost-saving measures by their clients.
What’s next? The responsibility of revitalizing Snowflake now rests with Sridhar Ramaswamy, the company's senior vice president of AI, who will step into the CEO position. Ramaswamy, who joined Snowflake through its acquisition of the AI-driven search engine Neeva last year, brings experience from his tenure overseeing Google’s advertising products. His elevation underscores a focus on AI for Snowflake.
Top Reads This Week
Apple Kills its Electric Car Project [New York Times]
After 10 years of development, Apple has canceled its long-anticipated electric and self-driving car project, a significant shift for a product that had been in development for nearly a decade and was once considered a key innovation under CEO Tim Cook's leadership. Despite the car project's high profile and the billions invested in its development, Apple's move to scrap the initiative reflects broader challenges in finding new growth avenues and maintaining its reputation for pioneering innovation.
Taiwan needs to find its own groove’: A plea to the next president [TechCrunch]
Taiwan's startup ecosystem is at a pivotal moment as incoming President Lai Ching-te aims to bolster the sector, potentially revolutionizing the island's economic landscape beyond its dominant semiconductor industry. With a commitment to investing in startups, easing regulations, and encouraging global expansion, Lai's administration offers a beacon of hope for entrepreneurs facing challenges such as funding and international competition. This article provides essential insights for those interested in the intersection of technology, policy, and innovation, highlighting the opportunities and obstacles within Taiwan's evolving startup scene.
Top 5 Deals of the Week:
Passes, an LA based content platform for creators, raised $40 million in Series A funding led by Bond Capital.
Gradial, a Seattle based AI platform for marketing and sales operations, raised $5 million in seed funding led by Madrona Ventures.
Glean, a Bay Area company creating an AI powered assistant for work, raised $200 million in Series D funding led by Kleiner Perkins and Lightspeed Venture Partners.
Intenseye, an NYC based provider of AI powered solutions for workplace safety, raised $64 million in Series B funding led by Lightspeed Venture Partners.
Lapse, a London based photo sharing app, raised $30 million in Series A funding led by Greylock and DST Partners.
Venture Jobs of the Week
Senior Investment Director, Aramco Ventures [Palo Alto]
Junior Software Investor, Headline Ventures [Bay Area]
Associate - Industrial Decarbonization, Lowercarbon Capital [Boston]
Associate, OMERS Ventures [Bay Area]
Analyst/Associate, Glasswing Ventures [Boston]
Growth Investor, Base10 Ventures [SF]
Analyst, Venture Guides [Boston]
Senior Associate, Rakuten Capital [Seattle]
Thank you for joining us for another edition of Glenn’s Weekly Digest! We hope you found valuable insights into the dynamic world of venture capital and startups. If you have any feedback or suggestions, feel free to reach out. Stay tuned for more exciting updates next week!
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