The Wall Street Journal says that smaller is sometimes better for generative AI models. WSJ shares that while initial forays into AI, like ChatGPT cost hundreds of millions to develop, “now, tech giants and startups are thinking smaller as they slim down AI software to make it cheaper, faster and more specialized. This category of AI software—called small or medium language models—is trained on less data and often designed for specific tasks.” AI models focused on individual end markets can be developed for less than $10M.
We believe that these trends benefit middle market tech innovators, who are able to move nibley in this rapidly-developing space. Black Lake seeks to invest in these innovators, who provide the best solutions possible for customers in niche markets, where they have existing expertise.
About Black Lake Capital
Black Lake Capital is a private investment firm partnering with technology and innovation-enabled businesses. From 100% buyouts to equity recapitalizations with majority or substantial minority positions, Black Lake has the flexibility to meet the needs of growing businesses. On our ten-year history, we have completed 14 transactions in cybersecurity, software development, systems integration, managed services, supply chain, and technology distribution Please visit our website, www.blacklakecap.com, for more information.
BLACK LAKE CAPITAL
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Black Lake Capital is a private investment firm partnering with technology and innovation-enabled businesses generating $2-12M in annual cash flow. Since 2013, we have completed 14 transactions cybersecurity, software development, systems integration, managed services, supply chain, and technology distribution.
