Vector databases were an obscure technology until Pinecone and other startups turned it into a billion-dollar market amid the AI boom. Businesses are leveraging vector databases to integrate private data with generative AI like GPT-4, enhancing data analysis and reducing AI errors.
Vector databases have been around for decades, but are now emerging as something of an industry standard for AI businesses to use alongside a technique called retrieval-augmented generation, or RAG. When combined, businesses can link their private data with large-language models like OpenAI’s GPT-4, allowing the AI to perform data analysis, summarization and other tasks on their data. Without them, AI models are limited to what they have learned from their initial training on public data online, up to a certain point in time, and are more prone to factual errors called “hallucinations.” NEWSLETTER SIGN-UP WSJ | CIO Journal The Morning Download delivers daily insights and news on business technology from the CIO Journal team. Preview Subscribe New York-based startup Pinecone was an early entrant in the vector database AI space. Valued at $750 million