A comprehensive analysis of the top conversational artificial intelligence platforms

In the dynamic landscape of AI-powered content generation, OpenAI stands at the forefront of Artificial General Intelligence (AGI) research. However, the primary purpose of products such as GPT-4 is to act as a productivity aid, for tasks such as coding. In addition, access to the best such models is often restricted by paywalls. These limitation have led to the growing popularity of other platforms which are primarily focused on providing Generative AI for consumers.

Sequoia Capital Generative AI Market Map

Compared to their Market Map from the previous year, Sequoia Capital has decided to categorize their latest Market Map based on use-case instead of by the type of model used. This change highlights two significant trends in the market: the shift of Generative AI from a broad technological tool towards more specific applications and value propositions, and the growing diversity of applications of generative AI that blend multiple modes of interaction.

It is clear that there are two main markets within Generative AI: consumers and prosumers. The prosumer market is largely dominated by ChatGPT, underscored by their recent launch of GPTStore. This platform aims to cater to the advanced needs of professional users and enthusiasts by offering specialized applications and tools powered by OpenAI’s closed-source technology.

On the consumer side, the main use case for Generative AI is for conversational purposes, with the leading platform, TikTok, amassing over 1 billion monthly active users. The largest emerging players are Character.AI and Chai AI, reporting 20 million and 5 million monthly active users, respectively.

The Platform Approach to Generative AI

One of the main differentiators setting TikTok, Chai AI, and Character AI apart is their platform-centric approach to Chat AI. These platforms rely heavily on User Generated Content (UGC), contrasting sharply with the single-character model offered within products such as Pi by Inflection AI. For instance, Chai AI reports the creation of an average of fifty thousand new “Chat AIs” (characters) daily. Similar to how individuals do not confine their viewership to a single TikTok channel, users on Chai AI and Character AI engage with multiple characters daily. Chai AI notes that each active user typically interacts with an average of five “Chat AIs” per day, and these “Chat AIs” vary day-by-day. This platform-based strategy has proven to be successful, as evidenced by Chai AI’s reported annual revenue of 12 million USD, almost all of the profit goes into hiring top Software and AI Engineers with lucrative salaries as advertised on their career page.

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Chaiverse – The Developer to Consumer Ecosystem

One major product that sets Chai AI apart from others is its developer-centric approach. Unlike other Generative AI products, which typically offer models developed in-house, Chai AI has recently introduced their developer platform, Chaiverse. This platform enables the Large-Language-Model Developer community to train, submit, and test their models with real-world users in a consumer setting. According to the Chaiverse white paper, their mission is to accelerate the advent of AGI through massively distributed collaboration, or crowdsourcing. Chai AI’s research team purport to be lazer-focussed exploring what makes each Large Language Model (LLM) unique and to improve person-to-LLM recommendations.

The operation of Chai AI’s ecosystem is quite straightforward. Developers can easily upload their language models using the chaiverse pip package. Once submitted, these models are optimized for rapid processing and hosted on a dedicated GPU cluster for enhanced efficiency. After the model is operational, users of the Chai App can engage with it through arena mode, providing immediate numerical and textual feedback.

This feedback, along with the ranking of a developer’s model on the public leaderboard, can be accessed through the chaiverse package. Cash prizes are awarded based on the developers’ standings in the competition, incentivizing them to strive for innovation and excellence in their model submissions. Winners are frequently announced both on Chai AI’s twitter and instagram accounts.

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