We are living in a fantastic time. People have a chance to see many innovations in such a short period. In the world of startups, artificial intelligence (AI) has become a catalyst for transformation. Numerous AI startups are established worldwide every day, but only a few can reach significant traction early. Caktus AI is one of the few AI startups that managed to do this within one year.
Despite being a relatively young player in the field, Caktus AI has captured the attention and gained momentum in the competitive AI startup landscape. So the ultimate question is, what is Caktus AI worth, and can it meet people’s expectations?
But first, what exactly is Caktus AI, and what is behind its early success?
The Journey of Caktus AI
Caktus AI was founded in 2022, and its head office is located in New York. The founders, Harrison Leonard and Tao Zhang established the startup to utilize AI in the EdTech industry. Their primary mission is to transform education with AI-based tools.
As an AI-powered learning platform, Caktus AI developed several tools to generate content. Such AI-based tools can write essays, help with your homework or teach you how to code. In essence, it works as an AI essay generator or an AI writing assistant.
Sounds cool. But you can ask why it is different from ChatGPT.
Caktus AI works with its own academic source database, an academic curated search engine. This AI tool was created for students to write essays and help them in learning.
Like other AI writing tools, Caktus AI uses your personalized writing style and includes many useful tools to enhance learning. By applying these techniques, a student can use Caktus AI for essay writing in a personalized way.
These AI writing tools aim to save students money and boost their productivity by providing them with tailor-made materials. Caktus AI reviews are mostly positive, so it is worth a try, that’s for sure.
Investment Milestone at Caktus AI
While the most reputable AI-powered platform reached Series A, B, or C funding, most are in their early phases, seeking seed or pre-seed funding. And Caktus AI is not different.
Although not too much information is available, it acquired early-stage venture capital at the end of 2022. There is currently one venture capital firm backing the startup, and surely there are high expectations regarding Caktus AI’s revenue.
Caktus AI already has over 2 million users, which is impressive as it has a relatively small team of 9 employees. Caktus AI pricing is $14.99 per month or $99.99 per year.
By doing a quick math, Caktus AI should have an MRR (Monthly Recurring Revenue) somewhere between $16 million and $30 million, depending on the selected subscription length. This achievement is outstanding when considering Caktus AI’s stage and scale.
Top 4 Challenges of an AI-powered learning platform
Due to the increasing availability of AI tools and platforms, their integration into various sectors will become inevitable. From healthcare to EdTech, AI holds the potential to reshape processes and drive efficiency.
While the advancement of AI is exciting, a big portion of the startups implementing AI solutions will probably face massive challenges. Depending on the industry, there might be obstacles regarding the access and quality of data or the customization of AI algorithms.
Caktus AI will definitely have some challenges to overcome in the future to implement AI solutions into EdTech.
Dropped funding at AI startups
According to GlobalData‘s information, AI startups raised over $50 billion in venture capital funding in 2022. Despite having remarkable funding rounds and unicorn births in Q1 of 2023, the overall investment activity in the AI industry could not avoid the general investment trends in 2023. As a result, the funding of AI startups dropped by 43% quarter-on-quarter.
Even though the conditions to acquire funding from investors might change, raising capital is still possible if Caktus AI has a solid business model.
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Shortage of Experts in the AI Industry
AI development requires substantial expertise and resources. Building and training sophisticated AI models are only possible with having top AI talent on board. AI development demands a deep understanding of machine learning algorithms, data processing, and computational infrastructure.
Considering the current hype around AI startups, acquiring and retaining top AI talent is difficult. This is due to the high demand and limited supply of skilled professionals in the AI industry. Caktus AI will probably face hiring difficulties along the way. Missing even one AI professional in an early-stage AI company like Caktus AI can present a challenging situation.
Data Quality and Quantity
AI relies heavily on high-quality and diverse datasets for effective learning. Obtaining sufficient, accurate, relevant data can be a significant challenge. Since Caktus AI has its own database, it might need to create a robust infrastructure for efficient data processing in the future.
Having an efficient data processing pipeline becomes crucial in the longer term. It helps to maintain Caktus AI’s performance and responsiveness.
Caktus AI has a chance to become the ChatGPT of the education industry. It already acquired more than two million users, which is solid feedback from the market. It has the ability to help improve students’ productivity in a school.
But at the same time, if you join Caktus AI, remember where we are on the journey. AI technology still has major technical, ethical, and data privacy issues to overcome. Whenever you use a new tool, make sure you avoid overreliance. As I see it, even though there are obstacles, Caktus AI will help transform education, and it is worth a try.