Inflection AI raises $1.3B in funding led by Microsoft and Nvidia

Inflection AI Raises $1.3 Billion to Construct GPU Cluster

On June 29th, Inflection AI, a Palo Alto-based company, declared the successful completion of a $1.3 billion raise, led by Microsoft, Reid Hoffman, Bill Gates, Eric Schmidt, and Nvidia. The new funds will be used in part to construct a 22,000-unit Nvidia H100 Tensor GPU cluster, which the firm asserts is the largest of its kind in the world. The GPUs are intended to create extensive artificial intelligence models. The developers commented:

Inflection AI has also created an AI assistant system called “Pi.” The business stated that Pi is a “mentor, coach, confidante, creative associate, and sounding board” that can be contacted straight through social media or WhatsApp. Since its launch in early 2022, the company’s total funding amount has now reached $1.525 billion.

Experts Caution Against Large AI Models Due to Technological Restrictions

Despite the increasing expenditure in massive AI models, specialists have cautioned that their real training effectiveness can be drastically hindered by current technological restrictions. As an example brought up by Singapore-based venture capital firm Foresight, researchers noted, citing the case of a 175 billion parameter large AI model that stores 700GB of data:

Foresight cautioned that, due to communication latency and network congestion, the amount of time needed for data transmission could be much greater than 1 second, thus causing computing nodes to spend the majority of their time waiting for data instead of conducting actual computation. Consequently, their analysts concluded that, under these conditions, the best solution was to employ small AI models, as they are “simpler to deploy and manage.”

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