Benzinga - by Shivani Kumaresan, Benzinga Staff Writer.
Touchcast Inc., a startup specializing in caching generative artificial intelligence queries, is set to raise $100 million from venture backers, including Microsoft Corp (NASDAQ:MSFT), an investor in OpenAI.
The New York-based company stores and delivers responses for frequently used AI prompts, aiming to reduce computational and energy requirements for models like OpenAI's GPT-4.
The initiative seeks to lower costs and enhance deployment efficiency for developers and businesses, according to a report from Bloomberg.
Accenture Plc (NYSE:ACN) backed Touchcast is expected to reach a valuation of at least $350 million after the new funding, according to CEO Edo Segal.
While details of Microsoft's investment remain undisclosed, Segal mentioned ongoing discussions with major Silicon Valley investors.
Businesses increasingly rely on AI to streamline daily operations, but the high demand has highlighted a critical shortage in GPUs, which are essential for training and running AI models, Bloomberg writes.
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Segal noted that Touchcast's approach aims to optimize computing and energy resources.
Recently, Touchcast launched its cognitive cache content delivery technology, which Segal likens to having several small library desks spread out in a large library, making information access more efficient.
"When users ask the same question, they go to the large language model over and over," said Segal. In today's AI-driven web, "a new class of infrastructure is critical to deliver these magical experiences at internet scale, sustainably."
Touchcast is collaborating with Microsoft to enhance and expand the distribution of generative AI queries.
This involves deploying cognitive caching technology across Microsoft's Azure data centers, reducing costs for Azure OpenAI tools.
Microsoft stock has gained more than 22% in the last 12 months. Investors can gain exposure to the stock via Technology Select Sector SPDR Fund (NYSE:XLK) and IShares U.S. Technology ETF (NYSE:IYW).
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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