Welcome to this Tuesday’s edition of Big Brain!

We’re here to bring you some positive AI vibes. Even if you’re feeling like Elon…

🔦 Today's AI spotlights:

• Snapchat releases new AI chatbot

• The business of generative AI

📢 CALLING ALL CREATORS:

Big Brain is hiring! If you’re interested in getting paid to make AI content for us, please fill out this form (or share with a friend): Creator intake form 

🔦 SNAPCHAT RELEASES NEW AI CHATBOT

Snapchat has come a long way over the years.

What was originally intended to be an app for disappearing nudes photos, has grown into a social media juggernaut.

The app has over 750 million monthly users and maintains a strong cultural footing with younger generations.

But its underlying business has struggled lately. (Its stock is down -75% over the past 12 months)

Could AI be Snapchat’s savior?

Today Snap announced it’s new AI chatbot called ‘My AI’. Here’s what you need to know:

• The bot will initially only be available for Snapchat Plus subscribers. (Which costs $3.99/month)

• The chatbot has been trained by employee’s to be more restrictive with its answers.

• CEO Evan Spiegel, said he expects people to be “talking to AI every day”. And that this bot should just be treated like another friend.

It’s too early to say how sticky this new feature will be… In the mean time, Snap is hoping it can generate some positive press on the AI hype wave.

🔦 THE BUSINESS OF GENERATIVE AI

Generative AI has taken the world by storm.

Between apps like ChatGPT and Midjourney, 100s of millions of people have already been exposed to it.

It’s clear that generative AI will be a big part of the future. What’s not clear, is who will capture the most value from this trend?

Here’s 3 main takeaways from Axios and a16z on the business of generative AI 👇

1) There are layers to the generative AI stack: There are applications (Jasper, Copilot), models (GPT-3, Stable Diffusion) and infrastructure (Nvidia GPUs, AWS cloud).

The big financial winners so far have been at the infrastructure level. But many expect the models to be commercialized soon.

2) Feature or product: Most AI use-cases today can be easily integrated with existing products. 

Many AI companies are at risk of being replaced by new features in existing large platforms. (See Microsoft’s OpenAI integrations)

3) Unit economics: AI companies have to deal with some unfavorable dynamics. For instance, the computing costs are very high for AI companies.

Meanwhile, many AI apps have struggled with retention and pricing wars vs competitors…

Trillions of $ in value will be created by AI over the next decade.

Until it becomes clear who the big winners will be, expect A LOT of investments across the stack.

📰 OTHER HEADLINES & STORIES

• Planning for AGI and beyond — by OpenAI

• Voicemod tools up with $14.5M to ride the generative AI (sonic)boom

• Meta revamps AI unit to get generative tech into products

• In the Whirl of ChatGPT, Startups See an Opening for Their AI Chips

🛠️ AWESOME AI TOOLS

• Flowgpt: The Premier Platform for Optimizing Workflow

• Promptlayer: Maintain a log of your prompts and OpenAI API requests

• MemeMorph: turn yourself into all of your favorite memes

• Synthesis YouTube: Search video podcasts using GPT3 and get relevant segments

🖼️ AI ART PIECE

From “Super pups and villains” — By Khun Garry Walker

🤖 CHATGPT PROMPT OF THE DAY

Turn ChatGPT into a motivational coach (source)