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Fine-Tuning the Future of AI: Argonautic is proud to support the evolution of the AI ecosystem and the entrepreneurs powering the innovation

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SEATTLE, Sept. 30, 2024 /PRNewswire/ — In the evolving landscape of artificial intelligence and machine learning, foundation models – the backbone of predictive tasks – have captivated the tech world. Their ability to perform learning tasks are transforming the way we approach natural language processing, computer vision, and signal processing. At Argonautic, while we acknowledge the pivotal role foundation models play in the AI value chain, it is our perspective that the verticalization of these models under direction of teams with unparalleled subject matter expertise and access to proprietary training data aligns with our capital efficient thesis versus new generalized foundation models which require high upfront training costs initially and face price commoditization in the long run.

Foundation models are pre-trained deep learning models that serve as the versatile and general base for computationally-intensive predictive tasks. Foundation models are then ‘fine-tuned’ to perform function specific tasks for a given use case. The term was coined by Stanford Academics in 2021 and surged in popularity in 2022 to describe the models which were breaking out at the time.  Foundation models are especially recognized for their ability to perform ‘zero-shot’ and ‘few-shot’ learning tasks, where a task is performed with few or zero examples previous given to the model.

Argonautic believes that while the evolution of foundation models is crucial for the advancement of AI and technology overall, business models which focus on building these baseline models have high capital requirements and likelihood of commoditization over time. Instead, we believe teams building models with strong subject matter expertise and knowledge of the problem to be solved (which may be built on these generalized models) will reliably come out ahead in solving the most important problems. These teams have unique access to proprietary data that can be used to train their fine-tuned models and unique distribution channels that more seamless inserts AI-powered tools into business workflows.

Foundation models are commonly used for a variety of natural language processing, computer vision, and signal processing tasks. Open AI’s “GPT-N” series captured the general public’s attention with its ability to craft coherent seeming text given a wide range of prompts. At its core, GPT-N simply predicts the next word in a sentence, which when scaled produces coherent seeming responses. It is trained on a large “corpus” of text data sourced mainly from the open internet but also from, forums, publications and  books.

Argonautic maintains a strategic focus on industries with use cases that require verticalized models. While recognizing the importance of foundation models in advancing AI and machine learning, it is clear that the concentration on constructing baseline models carries inherent limitations. Instead, Argonautic partners with teams with strong subject matter expertise to build models tailored to specific problem domains, leveraging their unique access to proprietary data and distribution channels. In the context of foundation models, Argonautic acknowledges the widespread applicability in natural language processing, computer vision, and signal processing tasks. By emphasizing the importance of fine-tuning to achieve verticalization, Argonautic underscores the ability of companies to specialize their models while benefiting from the underlying foundation model’s conversational interface. In this landscape, Argonautic positions itself against significant capital deployment in general foundation models due to diversification risks and concerns about the potential disruption posed by open-source models and new architectures.

For a generalized foundation model to become ‘verticalized’, it must be “fine-tuned” by passing in an extra set of domain specific data to tailor the generalized model for a use case. This allows companies to specialize their models while still benefiting from the conversational interface of the underlying foundation model. OpenAI’s ChatGPT, Alphabet’s Gemini, Meta’s Llama and others are foundation model driven businesses, which enables teams to build while avoiding billions of dollars of initial training costs.

Training a foundation model from scratch is a large, expensive, and important data engineering undertaking. The architecture of these models typically rely on transformers, which have been the industry standard for a number of years. Where it differs is the scale. The success of foundation models depends on the ability to seamless aggregate vast amounts of data with trillions of parameters. At the time of writing, this costs in the order of billions of dollars and will only grow as customer demands outpace the cost trends of computation and storage.

Argonautic does not believe general foundation models to be an area of capital deployment given our investment style. First, they require large checks which create diversification risk for our investors. Second, we are wary of the risk of open-source foundation models and new architectures disrupting the economics of proprietary models. For example, Retrieval Augmented Generation has changed the way enterprises look at retraining. Staying on are ahead of the curve is expensive and risky. 

Pre-dating the explosion of interest in private sector machine learning models, Argonautic believes the value of a model comes from a few areas: (1) unique architecture which gives it a technical or economic advantage (2) proprietary data which lets the model produce unique insights (3) ability to integrate seamlessly into existing workflows. Unique architecture is often spun off from academic institutions with heavy financial backing. As such our area of interest is in teams who have demonstrated the ability to use their unique insight to solve a specific problem. Teams in the space tend to work on verticalized foundation models which take general foundation models a step further with proprietary expertise.

For example, our portfolio company Cognaize, which automates financial spreading for large financial institutions, has accumulated years of financial data which allows it to fine-tune a defensible, verticalized foundation model in the financial technology space. Similarly, Document Crunch, which analyzes construction contracts for conflicting language, uses a corpus built over a number of years to produce exceedingly accurate results for its customers. ConCntric’s platform allows it collect data which will eventually inform its own powerful predictive model. The specific problems our protein engineering teams solve cannot be adequately addressed by a general model. The model’s differentiation for our teams is only possible because of the expertise of the overall team and is not reliant on a lasting technical edge.

As such, more important than ever, Argonautic is interested in teams that know the problem and market they are solving better than anyone else. This also protects companies from future disruption. Even with the next generation of trends, such as automated ‘AI agents’, we believe that teams with strong subject matter expertise are equipped to stay ahead of the pack. It is our view that general foundation models will never be able to solve a specific more reliably than a combination of an elite team that understands a problem and verticalized foundation model.

Argonautic is proud to have been deploying into AI since our founding. As technologists, we are excited to watch the field continue to change the world and as investors we see the opportunity to support this growth.

About Argonautic:

Founded in 2017, Argonautic is a AI/ML B2B venture capital fund investing across Fintech, Construction Tech and Biotech. Argonautic invests in entrepreneurs who are redefining the future of technology and innovation.

For more information, visit argonauticventures.com.

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Qatar Development Bank announces strategic investment in global Islamic FinTech, Wahed

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November 24, 2024

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DOHA, Qatar, Nov. 24, 2024 /PRNewswire/ — Qatar Development Bank (QDB) announces a strategic investment in Wahed, a global Shariah-compliant fintech.

Wahed currently manages over $1 billion in assets and has attracted over 400,000 clients worldwide. The company is built on the principles of democratizing access to financial services and offers clients access to Shariah-compliant investments in its mobile app. Wahed removes the barriers to sophisticated investment management services that have been traditionally reserved for high-net-worth investors.

Khalid Al Jassim, Executive Chairman of Wahed MENA said: ‘We are delighted to welcome our new shareholders, QDB. We believe Qatar is fully aligned with our mission in creating a technology-first Islamic finance leader that unlocks a financial ecosystem free from Riba. We look forward to supporting the Qatar National Vision 2030 of becoming a leading knowledge-based economy.

Ali Rahimtula, Partner at Cue Ball Capital said: “Qatar Development Bank’s strategic investment is a clear signal of the faith the industry has in Wahed and its ability to create the future of Islamic Finance.”

About Wahed

Founded in 2015, Wahed is a financial technology company that is advancing financial inclusion through accessible, affordable, and values-based investing. The company has made significant inroads in the world Shariah compliant investing by creating an easy-to-use digital platform that provides a suite of Shariah compliant investing products including managed portfolios and venture and real estate investments. Wahed caters to over 400,000 customers globally and manages over $ 1 billion in assets.

For more information, visit: www.wahed.com

About Qatar Development Bank

Qatar Development Bank’s mission is to advance the economic and innovation development cycle of Qatar, supporting and contributing to the nation’s economic diversification. As well as a focus on the development of Qatar’s private sector, QDB is a powerful catalyst for socio-economic development in the country, empowering the local economy and bettering living standards.

For more information, visit: https://www.qdb.qa/

 

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Wahed appoints Khalid Al Jassim as Executive Chairman of Wahed MENA to help guide the strategic growth of Wahed in the region

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November 24, 2024

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DOHA, Qatar, Nov. 24, 2024 /PRNewswire/ — Wahed, a global Shariah-compliant fintech, has appointed Khalid Al Jassim as Chairman of Wahed MENA.

On this appointment, Khalid commented, ”I am excited to guide Wahed’s growth in the region. Wahed’s mission of furthering Islamic Finance is one I resonate with deeply and I look forward to supporting its growth ambitions.”

Khalid has over twenty five years of investment banking and corporate advisory experience gained with some of the most innovative and groundbreaking institutions in the world.

His career spans leading firms including SABIC, Arthur Anderson and Arcapita Bank in Bahrain, where he was instrumental in making it into one of the PE powerhouses in the region. His responsibilities started in the earlier years with establishing the Investment Placement Team and transforming it into one of the most robust teams in the industry. At the time that Khalid left Arcapita to build his personal business, he was an Executive Director. Today he is Chairman of Afkar Vision, a private advisory house specialized in mergers and acquisitions with offices in Manama, Dubai and Riyadh.

As well as being one of the earliest investors in Wahed, he is currently Chairman of the Audit Committee and Board Member at Bahrain Islamic Bank, the 4th oldest Islamic Bank in the World and Board Member at SICO Bank and SICO Capital in Saudi, an $8bn asset manager in the region.

Mohsin Siddiqui, Wahed CEO said, “We are delighted to announce Khalid’s appointment. His unique understanding of the financial landscape in the MENA region is unparalleled and we are excited to bring this expertise in continuing to grow our presence in the region.”

About Wahed

Founded in 2015, Wahed is a financial technology company that is advancing financial inclusion through accessible, affordable, and values-based investing. The company has made significant inroads in the world Shariah compliant investing by creating an easy-to-use digital platform that provides a suite of Shariah compliant investing products including managed portfolios and venture and real estate investments. Wahed caters to over 400,000 customers globally and manages over $ 1 billion in assets.

For more information, visit: www.wahed.com

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“India Global Forum’s mission more relevant than ever,” says Finance Minister Nirmala Sitharaman ahead of IGF Middle East and Africa 2024

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3 hours ago

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November 24, 2024

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India Global Forum’s flagship event in UAE kicks off in Dubai on 25 November with IGF ForumPolicymakers, politicians, business figures and celebrities from India, UAE, Africa to converge at inaugural session

DUBAI, UAE, Nov. 24, 2024 /PRNewswire/ — Ahead of India Global Forum’s (IGF) flagship Middle East & Africa 2024 (ME&A 2024) in Dubai on Monday, 25 November, Finance Minister Nirmala Sitharaman commended the role of the organisation in fostering global partnerships.

“Through their impactful and outcomes driven work, India Global Form has consistently provided a platform that fosters a better understanding of modern India and its vast opportunities for the global audience. It has also played an important role in building meaningful cross-border connections.

“India Global Forum’s mission to build corridors of technology, talent, investment and trust is more relevant than ever,” she said.

Under the theme of ‘Limitless Horizons’, IGF ME&A 2024 will foster new partnerships and collaborations between India, the Middle East, and Africa, unlocking opportunities in sectors such as technology, finance, sustainability and innovation.

The two-day event will begin with a special address by India’s Commerce Minister Piyush Goyal.

The inaugural session will also witness UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, Omar al Olama, delve into the policies and reforms driving technological innovation in the UAE.

Looking forward to IGF ME&A, Indian Ambassador to the UAE, Sunjay Sudhir said: “The India-UAE relationship has entered an exciting new phase of exponential growth. We are at a moment in history where India-UAE relations are driving the synergy between our regions which has never been greater, and IGF serves as a beacon for harnessing this potential.”

Manoj Ladwa, Founder and Chairman, India Global Forum (IGF), said: “India’s External Affairs Minister, S. Jaishankar, aptly noted during his recent visit to Dubai that the India-UAE ties are in an era of new milestones. These ties are not just about trade figures or agreements – they represent a deeper alignment of values, aspirations, and shared visions for the future. IGF Middle East and Africa is an opportunity to channel this momentum into actionable outcomes that benefit not just our nations but the wider region.”

Featuring over 200 speakers and 1,000 participants across nine streams, IGF ME&A 2024 includes:

IGF Dialogues: An exclusive gathering of industry leaders and policymakers engaging in peer-to-peer roundtable discussions.IGF Forum: A Deep dive into how India, the Middle East, and Africa can embrace limitless horizons in a changing worldLeaders Dinner: An exclusive by-invite only dinner at the BAPS Hindu Mandir in Abu DhabiFounders and Funders Forum: Spotlighting the possibilities and pitfalls of the growing role of AI in India, the Middle East, and Africa.Climate and Business Forum (ClimB) – Exploring how businesses can achieve growth while prioritising sustainability and climate actionIGF Focus Forum – Discussions across diverse event streams, including leadership, entrepreneurship, healthcare, skilling and cultureDisruptors in the Desert – Demystifying emerging trends and technologies across key sectors poised to shape the next decade of the Global South. 

These engagements will tackle pressing global challenges, from climate change and energy transition to the future of AI and digital economies, bringing together a diverse lineup of global leaders, business pioneers, policymakers, and innovators.

Key Speakers across the event include:

H.E. Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work ApplicationsH.E. Sunjay Sudhir, Ambassador of India to UAEMahesh Bhupathi, Indian Tennis LegendYusuf Tambawala, Vice President of Growth & Business Support, DP WorldLeander Paes, Indian Tennis LegendAbhimanyu Munjal, Managing Director and CEO, Hero FincorpHarsh Jain, Co-Founder, Dream11Monish Shah, Founder and CEO, DreamSetGoSanjay Nayyar, Founder and Chairman, Sorin AdvisorsAmnah Ajmal, Executive Vice President, Market Development, Eastern Europe, Middle East and Africa, MastercardNeeraj Makin, Senior Executive Vice President, Group Head – Strategy, Analytics & Venture Capital, Emirates NBDSiddharth Shah, Co-founder, PharmeasyFaizal Kottikollon, Chairman, KEF HoldingsRola Abu Manneh, CEO Middle East, Standard CharteredSiddharth Balachandran, Executive Chairman & CEO, Buimerc CorporationKuppulakshmi Krishnamoorthy, Global Head, Zoho for StartupsMina Liccione, Comedian, Dubomedy

About India Global Forum
India Global Forum tells the story of contemporary India. The pace of change and growth India has set itself is an opportunity for the world. IGF is the gateway for businesses and nations to help seize that opportunity.  To know more, click here

Social Media Handles & Hashtag to Follow
Twitter: @IGFUpdates & @manojladwa
LinkedIn: India Global Forum
#IGFUAE

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