With artificial intelligence for mainstream use still in its infancy, most AI companies are years away from profitability. But for UNITH (ASX: UNT), the conversational AI company has already achieved that milestone.
For the Half Year ended 31 December 2022, UNITH generated $2.2 million in revenue which delivered 137k in net profit after tax, an inflection into profitability. The achievement came following UNITH’s rebrand to focus on its conversational AI products which attracted the interest of a Big 5 Tech company in October 2022.
Exact details of the deal could not be disclosed due to confidentiality clauses which should come at no surprise given the AI arms race in full swing between the Big 5 Tech companies (Google, Microsoft, Amazon, Meta and Apple). The deal, however, illustrated the quality and uniqueness of UNITH’s Talking Head platform which generates digital humans that can converse with humans in real time, powered entirely by AI.
“We are very proud of the progress we have achieved over the last 6 months,” said UNITH CEO, Idan Schmorak.
“We are at a very exciting point in time with demand and interest in conversational AI exploding, and we have a very clear pathway to capitalise on this growing demand.
“The development work already undertaken on our Talking Head platform led to the signing of a Big 5 Tech company as our first major customer, which was a major validation for our technology.”
The Big 5 AI arms race was best evidenced by Microsoft’s recent $10 billion investment in OpenAI, the creators of generative AI platform ChatGPT. With ChatGPT having been the talk of the tech world this year, the platform has already shown its ability to make millions of service jobs redundant by being outsourced to generative AI. In doing so, businesses do not need to deal with staff reliability – instead utilising the AI to work around the clock and service multiple customers at the same time where a human can only perform one task at a time, and is only available to work 9am to 5pm.
While ChatGPT has been impressive in its ability to date, it is still a text-only platform which is something UNITH could potentially change.
Generating digital humans that can talk in more than 60 languages, UNITH has already confirmed a successful test of their ChatGPT integration with their Talking Head platform. Upon commercialisation, the integration would lead to digital humans conversing in real time by providing both audio and visual features while content is generated by ChatGPT.
With the potential game-changer in conversational AI, institutional investors were quick to acquire a substantial stake in UNITH earlier in the month when the Company raised $4.5 million via an oversubscribed Placement.
Those funds will be added to the $1.9 million cash on hand UNITH held on 31 December 2022 for the Company to be well funded beyond 2023 as they upscale their sales and marketing initiatives to build momentum after their Big 5 Tech engagement.
“We are focused on building scale in our business model to win new large enterprise clients, while also building out self-service capabilities,” added Schmorak.
Trading Desk Assistant at Emerald Financial
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