An Edinburgh-based artificial intelligence start-up, Malted AI, has recently secured £6m in seed investment to further develop its technology. The company focuses on building smaller, more focused AI models at a fraction of the cost of existing solutions, aiming to provide significant cost savings while maintaining accuracy and performance.
Malted AI takes the output of large language models (LLMs) and distils them into smaller models known as small language models (SLMs). This approach allows enterprises to apply SLMs that are specifically designed to solve domain-specific problems. The goal is to optimize these models for a single task, rather than attempting to perform multiple tasks moderately well.
The technology developed by Malted AI has already caught the attention of financial and legal firms, which are using it in their first pilots. The company plans to roll out its technology to more enterprises throughout the rest of 2024.
According to Iain Mackie, Malted AI’s CEO and co-founder, “At Malted AI, we see smaller as better when it comes to AI. A single, many-billion parameter foundation model is costly, too general, and too slow. It’s not fit for purpose for the complex challenges enterprises face.” Mackie envisions enterprises using Malted AI to build a network of proprietary SLMs that are optimized for singular challenges.
Malted AI was founded by Iain Mackie, Carlos Gammel, and Federico Rossetto, who won the 2022 Amazon Alexa Prize, beating over 100 teams in one of the largest AI competitions. The company has a team of 10 individuals with a strong background in AI innovation, including professionals from Deepmind, Amazon, Google, and Bloomberg.
The recent funding round was led by Hoxton Ventures, with participation from the Creator Fund and several angel investors. Bryan Gartner, a partner at Hoxton Ventures, expressed excitement about Malted AI’s potential, stating, “Malted AI has the capacity to be one of Europe’s most notable AI companies as they flip the thinking and approach to AI adoption within the enterprise.”
This latest investment brings Malted AI’s total funding to £7m. The company plans to use these funds for research, product development, and recruitment as they double the size of their team.
With its innovative technology and strong track record, Malted AI is poised to make a significant impact in the AI industry. As enterprises continue to seek AI solutions that are cost-effective and tailored to their specific needs, Malted AI’s approach to building small language models may revolutionize the way AI is adopted and implemented within businesses.
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