Hi, and welcome to Semafor Tech, a twice-weekly newsletter from Louise Matsakis and me that gives an inside look at the struggle for the future of the tech industry. While the AI exuberance in Silicon Valley continues, there’s been a lot of buzz lately about the future of one of the hottest companies in the space: Stability AI. They burst onto the scene last year with Stable Diffusion, an open-source AI model that can turn text into images.
I asked a lot of plugged-in people in AI about the startup and the response was always roughly the same: Stability’s CEO, Emad Mostaque, has gotten out over his skis. I did some reporting and the company is indeed in a tough spot, but I wouldn’t say it’s about to implode. It’s easy to make that bet, since the majority of startups do fail. The takeaway for me is that while AI is the hottest area in tech right now, it’s moving so fast and the competition is intense. We’re going to see some promising companies get steamrolled. More details below.
And as we focus our newsletter more on AI, Semafor’s Executive Editor Gina Chua has a mini rant on why chatbots ≠ search engines.
Plus, registration is still open for Semafor’s inaugural World Economy Summit on April 12 in Washington, DC. Join NEC Director Lael Brainard, GoDaddy CEO Aman Bhutani, Microsoft President Brad Smith, Verizon CEO Hans Vestberg, Cloudflare CEO Matthew Prince, and other key figures to discuss what’s next for the global economy. Attend in person at Gallup HQ or join us virtually. Register here before the list closes.
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