Nvidia and Google Bet on AI Startup CentML in $27M Funding
Artificial intelligence investments are not showing any signs of slowing down. Microsoft investing close to $13 billion in ChatGPT parent OpenAI opened the floodgates as companies and venture capitalists eye a piece of the burgeoning segment. CentML is the latest AI to be at the center of a massive tussle between tech giants looking to strengthen their exposure around revolutionary technology.
CentML $27M Funding
The Toronto-based Software Company, builds software that helps machine learning systems work more efficiently, has attracted a $27 million investment. Nvidia and Google are the big names participating in the latest funding round through their venture funds. Gradient Ventures, Radical Ventures, Deloitte Ventures and Thomson Reuters are the other high-profile names participating in the financing round.
CentML has come to prominence amid the growing demand and shortage of graphics processing units needed to power artificial intelligence solutions and innovations. With supply expected to remain tight well into 2024, prices of the much-needed chips are expected to skyrocket. On the other hand, CentML is offering a way of maximizing the potential of current GPUs by providing software that allows machine learning systems to work more efficiently.
A brainchild of Gennady Pekhimenko, a PhD in machine learning from Carnegie Mellon University, CentML has built software that helps predict the time it takes to process tasks using different hardware. The software can monitor various systems and pinpoint underutilized areas while analyzing cost power consumption and cost. In return, it can distribute tasks to try and speed them up.
How the software helps in task allocation helps maximize chip use and shave cost. While the average utilization for GPUs in use stands at around 30%, CentML software stands to be of great use in distributing tasks and speeding them up. The fact that the system can speed up systems by as much as eight times should significantly impact AI adoption.
Soaring AI Investments
Amid the ever-growing demand for GPUs capable of enabling and powering artificial intelligence innovations and solutions, CentML stands to be a big player in the burgeoning industry. Likewise, the Canadian company intends to set up an office in Silicon Valley as it seeks to attract talent. There are plans to double the workforce size from about 30 over the next 12 months in the race to accelerate innovations.
CentML joins a growing list of AI startups that have attracted millions of investments from tech giants. Amazon has already invested $4 billion in Anthropic as the company seeks to capitalize on the opportunities the technology will likely fuel. Amazon and Anthropic are joining forces to develop the so-called foundation models that underpin generative AI systems.
As artificial intelligence emerges as a transformative force revolutionizing industries and reshaping how people live and work, investments will continue flooding into the sector. While AI startups attracted a record-breaking $40 billion in funding last year, the figure has more than doubled in 2023 as companies come to terms with the technology’s immense potential.