In this week’s business news roundup, we’ll bring you the latest AI, Enterprise, and Venture industries updates from April 22th to April 28th. Stay tuned for stories on the upcoming launch of RightWingGPT, an AI developer’s response to ChatGPT’s ideological leanings, and the reasons behind the massive layoffs of employees in some companies. We’ll also cover the latest funding news from thriving capital raises.
AI
AI developer David Rozado introduces RightWingGPT as a response to ChatGPT’s ideological leanings
Recently, Elon Musk announced the development of an AI platform named “TruthGPT”, which will compete with ChatGPT. He accused OpenAI, supported by Microsoft, of training its AI to lie and becoming a for-profit organization closely aligned with Microsoft. He also intended to make “TruthGPT” open source and not-for-profit.
Besides Elon Musk, other people are also expressing concerns about ChatGPT. Data scientist David Rozado has created an innovative solution to address the issue of “woke” bias in OpenAI’s ChatGPT. His AI model, RightWingGPT, presents conservative views on topics such as gun control and taxes. Rozado plans to create a more liberal version of the AI called LeftWingGPT, along with a depolarizing model, after fine-tuning RightWingGPT with additional text. Rather than promoting a specific ideology, the project aims to encourage critical thinking. While some AI models may reinforce biases and falsehoods, Rozado intends to develop AI models that promote unity and understanding.
Enterprise
Dropbox cuts 500 jobs, citing slowing growth and impact of AI
Cloud storage company Dropbox has announced it is laying off 16% of its workforce, around 500 employees, due to slowing growth and the onset of the “AI era of computing.” CEO Drew Houston said the move is a preemptive step to cut costs and invest in new areas. Despite being profitable, the company believes growth is slowing, and investment returns are no longer sustainable. The layoffs will result in charges of approximately $37 million to $42 million, which will be recorded in Q2. The move follows other tech companies that have announced layoffs this year.
As a reminder, Layoffs.fyi tracker reports that nearly 620 tech companies have laid off over 184,000 employees in the tech industry in 2023.
Clubhouse slashes staff by over 50% in an attempt to address issues
Another massive layoff of employees happened at Clubhouse, the social audio app. It has laid off more than half its staff due to changing customer habits in a post-COVID world and remote work complexities. The company’s co-founders, Paul Davison, and Rohan Seth, stated that as the world has opened up, it has become harder for many people to find friends on Clubhouse and fit long conversations into their daily lives. The company, backed by over $100 million in venture capital, is now focused on building “Clubhouse 2.0” with a smaller, leaner team. The remaining team will continue to recruit for roles in engineering, product, and design, and the company has confirmed that it has “years of runway left.”
Venture
Greycroft raises more than $1 billion for new funds
Venture capital firm, Greycroft, has successfully raised over $1 billion in capital commitments across new funds, Greycroft Partners VII and Greycroft Growth IV. The funds will be used to invest in early-stage and growth-stage businesses in the enterprise and consumer sectors. The firm’s track record of successful investments in high-growth companies and its experienced team and bicoastal foundation make them an attractive choice for investors looking to diversify their portfolios.
Greycroft’s portfolio includes a range of high-growth companies, such as Bird, Bumble, HuffPost, Goop, The RealReal, and Venmo, and the firm targets investments between $500,000 and $50 million globally.
