Summary
Artificially intelligent technology is defining the 21st century. Whether it be to recommend a movie or to recognize our face, it has become a staple in modern tech. Many of us are aware that tech giants like Facebook use it in a number of their algorithms, but what about smaller businesses? GenesisAI wants to make this technology more accessible.
We sat down with CEO, Archil Cheishvili to learn more about how GenesisAI came to be, how he and his team plan to allocate funds raised in this round, and more-
For those who don’t know, what is the origin story of GenesisAI?
When we were developing Palatine Analytics (a startup selling AI-powered employee performance monitoring systems), we learned that AI development is hindered by two fundamental problems:
- AI development is expensive.
- Independent AI developers can neither monetize nor share their code.
Today, there are only around 10,000 AI developers in the world. 99% of companies cannot afford to hire their own team of AI engineers to create in-house AIs, nor do they have enough technical capabilities to correctly determine from which open-source APIs to grab existing AI code.
Astoundingly, there is no way for AIs to exchange data, learn from each other, leverage their capabilities, and trade services— let alone judge the quality of AIs (there is no reputation system). AIs are operating in a closed environment.
So we built GenesisAI.
What is artificial intelligence and how can it be used by your target customers?
In simple words, Artificial Intelligence is an area of computer science that tries to simulate human behavior in a machine. This concept is revolutionary because it starts from the assumption that a well-functioning AI code won’t need any human direction. For example, if we run a big amount of online data to generate market research on a particular industry, we won’t have to tell the code which trends to analyze, but the code will recognize the trends for us.
Below are descriptions of a subset of all the models currently available on our marketplace. These models are pre-trained and running on servers owned by GenesisAI. The hedging tool calculates negatively correlated stocks while filtering for economic relevance, thereby removing random correlations from the output. The stock summarizer tool generates a report of a stock’s price history with large movements in price labeled with news events. The exposure tool generates an output of assets which will give an investor exposure to certain news events. The speech recognition tool transcribes audio to text; this is useful to analyze earnings calls and other types of audio data. The text sentiment model provides a breakdown of the sentiment of the given text. Cross Provider model enables users to use multiple models to derive key investment insights. They can merge multiple models, for example, speech recognition and text sentiment to derive sentiment analysis of the audio data.
How do you plan on allocating funds raised in this round to scale the business?
40% towards product development. Paying to Platform Development Team 40% towards business development. Cost of Personnel. Cost of Marketing. 12.5% towards operations – Office space, travel, logistics, other SG&A 7.5% towards Wefunder fees.
You describe your company as “Amazon for AI services” what do you mean by this exactly and how does it play into your overall vision?
The marketplace, which includes a built-in reputation system, connects companies in need of AI services, data, and models with companies interested in monetizing their AI tech. Initially, GenesisAI is focused on asset management space.
How does your product account for the individual niche needs of your customers?
Initially, we are focused on the asset management space.
Has data privacy ever come up as a concern when building your product?
Data will be encrypted in a way that machine learning code developers can still use it to train their codes without accessing sensitive information. No sensitive information will be shared with developers.
Do you have any competition, if so, how do you differentiate?
Most of the AI marketplaces are for developers (almost exclusively). We are very different in terms of our goal is to allow non-technical people to use AI products and services. Second, not only we are connecting buyers and sellers of AIs with each other but also our protocol enables multiple AI models to work together seamlessly (e.g speech recognition model + translation = speech translation. ). This gives us a unique edge – higher accuracy rates and increased functionality.
What are the biggest risks associated with your business?
Competition & not being able to solve deep tech problems.
What does your business model look like?
We will provide the protocol that allows people to make transactions on the platform, and we will take a small percentage of the transaction value. Our revenue forecasts are based on a transaction fee of 30%, which is likely to be the final value we will charge. This charge is very low if we compare it with how much money you would spend in marketing to get the same transaction volume you are getting on GenesisAI.
As you think about the business 5-10 years down the road, what do you see exit opportunities looking like?
Our goal is to IPO! We would like to build the single most valuable technology of all time!
Earlier this month, we rated GenesisAI a Deal To Watch. We at KingsCrowd are excited to see where Archil and his team take the company. GenesisAI is currently raising funds on Wefunder via Crowd SAFE with a $7.5M valuation cap.
