San Francisco-based AI startup Writer has introduced a large AI model aimed at enterprise clients, positioning itself against competitors like OpenAI and Anthropic.
The startup stands out by significantly cutting costs in training its AI models, spending around $700,000, compared to the millions spent by its rivals.
The writer’s use of synthetic data—AI-generated data mimicking real-world information without privacy compromises—plays a key role in this efficiency.
Synthetic data has gained traction across the tech industry, with major players like Amazon, Meta, and OpenAI utilizing it for AI training.
Writer’s AI model uses synthetic data, attracting top clients like Uber and Salesforce.However, experts have raised concerns about the potential risks of synthetic data degrading model performance or amplifying biases.
Writer’s co-founder and CTO, Waseem Alshikh, clarified misconceptions, emphasizing that the company’s synthetic data pipeline structures real factual data in a cleaner format, avoiding random or “hallucinated” information.
In light of its success, Writer is raising $200 million at a valuation of $1.9 billion, quadrupling its value from September 2023 when it raised $100 million at a $500 million valuation.
The company now serves over 250 enterprise clients, including major names like Accenture, Uber, and Salesforce, across sectors such as sales, IT, and marketing.
The generative AI market continues to expand, with projections to reach $1 trillion in revenue within the next decade.
In 2024 alone, $26.8 billion has been invested in AI-related deals, underscoring the growing momentum in the sector.