AI Startup Nomic Raises $17 Million To Do What OpenAI Didn't Want To: Open Source Artificial Intelligence For All

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Chris Bibey

Tue, Aug 1, 2023, 6:04 PM 2 min read

While startup funding has generally been tight, early-stage companies in the artificial intelligence (AI) space are in a better position than other businesses. Nomic AI is the latest AI startup to achieve success in this area, securing $17 million in a new funding round from investors led by Coatue Management.

The investment, which also included participation from Betaworks Ventures and Contrary Capital, places a valuation of $100 million on the up-and-coming open-source AI model creator.

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What Does The Future Hold For Nomic?

Founded in 2022, the company has released two notable offerings to date.

Firstly, they introduced GPT4ALL, an open-source artificial intelligence model that's freely accessible for download and compatible with everyday devices like laptops.

Its second product, called Atlas, provides a platform for users to graphically represent and understand the unstructured datasets that contribute to the construction of large language models (LLMs).

"We want to allow people to have access to the most powerful models that are specialized for the use cases they care about and to build those systems themselves," Nomic AI Co-Founder Andriy Mulyar said. "They need to be able to understand what data goes into those systems."

According to the company, its products have been used by more than 50,000 developers, and it has partnerships with MongoDB and Replit.

Nomic plans to use the funding for product development and hiring. With the backing of Coatue, a private equity firm that's invested in other AI startups, such as Hugging Face and Stability AI, the company is in a position to become the leader in its niche.

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