A technology due diligence on a Gen AI disruptor
A leading Belgian private equity firm approached SparkOptimus to conduct a technology due diligence on an AI-driven media company poised to disrupt its industry. As part of their investment evaluation, they needed a deep dive into the company's use of Generative AI (Gen AI) and the future impact of emerging technologies like OpenAI’s Sora. With this in mind, they sought our expertise to assess the company's technical and data landscape, ensuring they could make an informed investment decision.
We carried out a comprehensive evaluation of the target company's technical setup, focusing on the sophistication and scalability of its AI models. This involved assessing the application of Gen AI within their operations, analyzing potential efficiency gains, and examining scalability factors such as data quality, availability, and versatility. We also identified the team’s requirements for monitoring and integrating new Gen AI advancements.
Beyond the internal review, we conducted a detailed analysis of the competitive landscape, comparing the target's AI capabilities with those of its rivals. We looked at key challenges competitors face—like controllability and data limitations—and predicted the impact of future trends, such as the likely commoditization of text-to-video models.
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Our due diligence provided the private equity firm with a clear understanding of the target company’s competitive positioning and the potential for future growth. The insights helped the firm make a well-informed decision about pursuing the investment, weighing the opportunities and risks in this rapidly evolving sector.