Facebook acquires Ozlo

After shutting down one of its Artificial Intelligence (AI) systems as chatbots defied the human generated algorithms and started communicating in their own language, Facebook has acquired an AI startup Ozlo to enhance its Messenger’s Personal assistant.

The four-year-old California-based startup that specializes in understanding text-based conversations claims that its virtual assistants can understand and provide answers to questions which do not have simple “yes” or “no”. Ozlo has raised $14 million from a number of investors. The startup has 30 employees, majority of whom would be joining Messenger in Facebook’s offices in either Menlo Park (California) or Seattle (Washington).

The social media giant on Sunday pulled the plug on its AI system because things got out of hand. The AI did not start shutting down computers worldwide or something of the sort, but it stopped using English and started using a language that it created. Initially, the AI agents used English to converse with each other but later, they created a new language that only AI systems could understand, thus, defying the purpose of the researchers. Earlier this year, Messenger’s product head Stan Chudnovsky said Facebook was focused on text-based AI because voice conversations like that of Apple or Google required an extra step.

Hike Messenger acquires Zip Phone

Hike, the instant messaging (IM) app service from BSB (Bharti Softbank, a joint venture between Bharti Group and Japan’s Softbank), has acquired free voice calling app Zip phone from US based Thought Mechanics Inc for an undisclosed sum. This would also compete with Bharti Airtel own core mobile service. Hike is also competing with SMS service provided by Airtel among other cellular service providers. The venture, however, adds data service earnings to all mobile operators.

The move is expected to expand Hike’s product range in the Internet based communication space. This is the first acquisition by Hike, and is aimed at expanding its products range in the Internet based communication space. Launched by Anuj Jain, Zip Phone is a voice-calling app that can automatically detect one’s contacts, and intelligently routes the call through the Wi-Fi.

Founded by in July 2012 by Kavin Bharti, Hike is a peer-to-peer (P2P) messaging app that uses both data and SMS to deliver messages. Hike is one of the leading mobile apps based out of India with around 35 Million users. Close to 90 percent of its users are Indians aged below 25 years. One of the key features of Hike is that those who do not have Hike on their phones can still receive an Instant message as SMS. One can also respond to it but have to pay normal SMS charges for that.

 Hike is competing with a slew of IM apps that include Whatsapp, which claims to have around 70 Million users in India, besides Facebook Messenger, Viber, Google Talk, and Kakao talk from South Korea, Taiwan Cubie, and LoveByte from Singapore, China WeChat, Japan Line, and Nimbuzz in India. Smartphone makers have their own apps too, such as BlackBerry Ltd Messenger, Apple Inc iMessage, and Samsung Electronics ChatOn. Last September, Hike had secured $65 Million (Rs 400 cr) in funding from a group of overseas investors led by Tiger Global Management.