AI

While tech companies play with OpenAI’s API, this startup believes small, in-house AI models will win

Comment

2 stones in sand zen garden
Image Credits: og-vision / Getty Images

ZenML wants to be the glue that makes all the open-source AI tools stick together. This open-source framework lets you build pipelines that will be used by data scientists, machine-learning engineers and platform engineers to collaborate and build new AI models.

The reason ZenML is interesting is that it empowers companies so they can build their own private models. Of course, companies likely won’t build a GPT-4 competitor. But they could build smaller models that work particularly well for their needs. And it would reduce their dependence on API providers, such as OpenAI and Anthropic.

“The idea is that, once the first wave of hype with everyone using OpenAI or closed-source APIs is over, [ZenML] will enable people to build their own stack,” Louis Coppey, a partner at VC firm Point Nine, told me.

Earlier this year, ZenML raised an extension of its seed round from Point Nine with existing investor Crane also participating. Overall, the startup based in Munich, Germany has secured $6.4 million since its inception.

Adam Probst and Hamza Tahir, the founders of ZenML, previously worked together on a company that was building ML pipelines for other companies in a specific industry. “Day in, day out, we needed to build machine learning models and bring machine learning into production,” ZenML CEO Adam Probst told me.

From this work, the duo started designing a modular system that would adapt to different circumstances, environments and customers so that they wouldn’t have to repeat the same work over and over again — this led to ZenML.

At the same time, engineers who are getting started with machine learning could get a head start by using this modular system. The ZenML team calls this space MLOps — it’s a bit like DevOps, but applied to ML in particular.

“We are connecting the open source tools that are focusing on specific steps of the value chain to build a machine learning pipeline — everything on the back of the hyperscalers, so everything on the back of AWS and Google — and also on-prem solutions,” Probst said.

The main concept of ZenML is pipelines. When you write a pipeline, you can then run it locally or deploy it using open source tools like Airflow or Kubeflow. You can also take advantage of managed cloud services, such as EC2, Vertex Pipelines and SageMaker. ZenML also integrates with open source ML tools from Hugging Face, MLflow, TensorFlow, PyTorch, etc.

“ZenML is sort of the thing that brings everything together into one single unified experience — it’s multi-vendor, multi-cloud,” ZenML CTO Hamza Tahir said. It brings connectors, observability and auditability to ML workflows.

The company first released its framework on GitHub as an open source tool. The team has amassed more than 3,000 stars on the coding platform. ZenML also recently started offering a cloud version with managed servers — triggers for continuous integrations and deployment (CI/CD) are coming soon.

Some companies have been using ZenML for industrial use cases, e-commerce recommendation systems, image recognition in a medical environment, etc. Clients include Rivian, Playtika and Leroy Merlin.

Private, industry-specific models

The success of ZenML will depend on how the AI ecosystem is evolving. Right now, many companies are adding AI features here and there by querying OpenAI’s API. In this product, you now have a new magic button that can summarize large chunks of text. In that product, you now have pre-written answers for customer support interactions.

“OpenAI will have a future, but we think the majority of the market will have to have its own solution.” Adam Probst

But there are a couple of issues with these APIs — they are too sophisticated and too expensive. “OpenAI, or these large language models built behind closed doors are built for general use cases — not for specific use cases. So currently it’s way too trained and way too expensive for specific use cases,” Probst said.

“OpenAI will have a future, but we think the majority of the market will have to have its own solution. And this is why open source is very appealing to them,” he added.

OpenAI’s CEO Sam Altman also believes that AI models won’t be a one-size-fits-all situation. “I think both have an important role. We’re interested in both and the future will be a hybrid of both,” Altman said when answering a question about small, specialized models versus broad models during a Q&A session at Station F earlier this year.

There are also ethical and legal implications with AI usage. Regulation is still very much evolving in real time, but European legislation in particular could encourage companies to use AI models trained on very specific data sets and in very specific ways.

“Gartner says that 75% of enterprises are shifting from [proofs of concept] to production in 2024. So the next year or two are probably some of the most seminal moments in the history of AI, where we are finally getting into production using probably a mixture of open-source foundational models fine tuned on proprietary data,” Tahir told me.

“The value of MLOps is that we believe that 99% of AI use cases will be driven by more specialized, cheaper, smaller models that will be trained in house,” he added later in the conversation.

Image Credits: ZenML

More TechCrunch

Featured Article

CIOs’ concerns over generative AI echo those of the early days of cloud computing

CIOs trying to govern generative AI have the same concerns they had about cloud computing 15 years ago, but they’ve learned some things along the way.

3 hours ago
CIOs’ concerns over generative AI echo those of the early days of cloud computing

It sounds like the latest dispute between Apple and Fortnite-maker Epic Games isn’t over. Epic has been fighting Apple for years over the company’s revenue-sharing requirements in the App Store.…

Epic Games CEO promises to ‘fight’ Apple over ‘absurd’ changes

As deep-pocketed companies like Amazon, Google and Walmart invest in and experiment with drone delivery, a phenomenon reflective of this modern era has emerged. Drones, carrying snacks and other sundries,…

What happens if you shoot down a delivery drone?

A police officer pulled over a self-driving Waymo vehicle in Phoenix after it ran a red light and pulled into a lane of oncoming traffic, according to dispatch records. The…

Waymo robotaxi pulled over by Phoenix police after driving into the wrong lane

Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here. This week, Figma CEO Dylan…

Figma pauses its new AI feature after Apple controversy

We’ve created this guide to help parents navigate the controls offered by popular social media companies.

How to set up parental controls on Facebook, Snapchat, TikTok and more popular sites

Featured Article

You could learn a lot from a CIO with a $17B IT budget

Lori Beer’s work is a case study for every CIO out there, most of whom will never come close to JP Morgan Chase’s scale, but who can still learn from how it goes about its business.

1 day ago
You could learn a lot from a CIO with a $17B IT budget

For the first time, Chinese government workers will be able to purchase Tesla’s Model Y for official use. Specifically, officials in eastern China’s Jiangsu province included the Model Y in…

Tesla makes it onto Chinese government purchase list

Generative AI models don’t process text the same way humans do. Understanding their “token”-based internal environments may help explain some of their strange behaviors — and stubborn limitations. Most models,…

Tokens are a big reason today’s generative AI falls short

After multiple rejections, Apple has approved Fortnite maker Epic Games’ third-party app marketplace for launch in the EU. As now permitted by the EU’s Digital Markets Act (DMA), Epic announced…

Apple approves Epic Games’ marketplace app after initial rejections

There’s no need to worry that your secret ChatGPT conversations were obtained in a recently reported breach of OpenAI’s systems. The hack itself, while troubling, appears to have been superficial…

OpenAI breach is a reminder that AI companies are treasure troves for hackers

Welcome to Startups Weekly — TechCrunch’s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Most…

Space for newcomers, biotech going mainstream, and more

Elon Musk’s X is exploring more ways to integrate xAI’s Grok into the social networking app. According to a series of recent discoveries, X is developing new features like the…

X plans to more deeply integrate Grok’s AI, app researcher finds

We’re about four months away from TechCrunch Disrupt 2024, taking place October 28 to 30 in San Francisco! We could not bring you this world-class event without our world-class partners…

Meet Brex, Google Cloud, Aerospace and more at Disrupt 2024

In its latest step targeting a major marketplace, the European Commission sent Amazon another request for information (RFI) Friday in relation to its compliance under the bloc’s rulebook for digital…

Amazon faces more EU scrutiny over recommender algorithms and ads transparency

Quantum Rise, a Chicago-based startup that does AI-driven automation for companies like dunnhumby (a retail analytics platform for the grocery industry), has raised a $15 million seed round from Erie…

Quantum Rise grabs $15M seed for its AI-driven ‘Consulting 2.0’ startup

On July 4, YouTube released an updated eraser tool for creators so they can easily remove any copyrighted music from their videos without affecting any other audio such as dialog…

YouTube’s updated eraser tool removes copyrighted music without impacting other audio

Airtel, India’s second-largest telecom operator, on Friday denied any breach of its systems following reports of an alleged security lapse that has caused concern among its customers. The telecom group,…

India’s Airtel dismisses data breach reports amid customer concerns

According to a recent Dealroom report on the Spanish tech ecosystem, the combined enterprise value of Spanish startups surpassed €100 billion in 2023. In the latest confirmation of this upward trend, Madrid-based…

Spain’s exposure to climate change helps Madrid-based VC Seaya close €300M climate tech fund

Forestay, an emerging VC based out of Geneva, Switzerland, has been busy. This week it closed its second fund, Forestay Capital II, at a hard cap of $220 million. The…

Forestay, Europe’s newest $220M growth-stage VC fund, will focus on AI

Threads, Meta’s alternative to Twitter, just celebrated its first birthday. After launching on July 5 last year, the social network has reached 175 million monthly active users — that’s a…

A year later, what Threads could learn from other social networks

J2 Ventures, a firm led mostly by U.S. military veterans, announced on Thursday that it has raised a $150 million second fund. The Boston-based firm invests in startups whose products…

J2 Ventures, focused on military healthcare, grabs $150M for its second fund

HealthEquity said in an 8-K filing with the SEC that it detected “anomalous behavior by a personal use device belonging to a business partner.”

HealthEquity says data breach is an ‘isolated incident’

Roll20 said that on June 29 it had detected that a “bad actor” gained access to an account on the company’s administrative website for one hour.

Roll20, an online tabletop role-playing game platform, discloses data breach

Fisker has a willing buyer for its remaining inventory of all-electric Ocean SUVs, and has asked the Delaware Bankruptcy Court judge overseeing its Chapter 11 case to approve the sale.…

Fisker asks bankruptcy court to sell its EVs at average of $14,000 each

Teddy Solomon just moved to a new house in Palo Alto, so he turned to the Stanford community on Fizz to furnish his room. “Every time I show up to…

Fizz, the anonymous Gen Z social app, adds a marketplace for college students

With increasing competition for what is, essentially, still a small number of hard tech and deep tech deals, Sidney Scott realized it would be a challenge for smaller funds like…

Why deep tech VC Driving Forces is shutting down

A guide to turn off reactions on your iPhone and Mac so you don’t get surprised by effects during work video calls.

How to turn off those silly video call reactions on iPhone and Mac

Amazon has decided to discontinue its Astro for Business device, a security robot for small- and medium-sized businesses, just seven months after launch.  In an email sent to customers and…

Amazon retires its Astro for Business security robot after only 7 months

Hiya, folks, and welcome to TechCrunch’s regular AI newsletter. This week in AI, the U.S. Supreme Court struck down “Chevron deference,” a 40-year-old ruling on federal agencies’ power that required…

This Week in AI: With Chevron’s demise, AI regulation seems dead in the water