Open-source AI model creator Nomic raises $17 million led by Coatue

– AI startup Nomic has raised $17 million in a funding round led by Coatue, with participation from Contrary Capital and Betaworks Ventures.

– The investment valued Nomic AI, a New York-based team of four, at $100 million, indicating growing interest from venture capitalists in small teams developing popular AI products.

– Nomic, founded in 2022, has released two products: GPT4ALL, an open-source AI model that is free to download and run on devices like laptops, and Atlas, a tool for visualizing unstructured datasets used in building large language models (LLMs).

– The company aims to enhance dataset visibility in model training and democratize access to AI models, allowing users to understand the data used in those systems.

– Nomic's products have been utilized by over 50,000 developers, including those from companies like Hugging Face. It has partnerships with MongoDB and Replit.

– Open-source models serve as alternatives to proprietary models from AI labs such as OpenAI and Google, as global researchers collaborate to develop models that can rival GPT-4.

– The investment by Coatue, a venture capital firm, aligns with its series of investments in open-source AI startups, including Stability AI, Hugging Face, and Replit.