The case charts the creation and development of ObEN, a Los Angeles start-up that offers two kinds of personal artificial intelligence avatars - consumer avatars that can be created by individuals on their smartphones, and avatars that recreate a celebrity persona (requiring more data). It explores the challenges facing the company: building prototypes, recruiting staff, identifying markets, dealing with public acceptance issues, and attracting funding, while developing new technology and exploiting innovations such as blockchain (the commercial applications of which are still to be identified).

Preferred Networks, Inc. (PFN), a start-up specialized in deep learning technologies, a branch of artificial intelligence (AI) research, differentiated itself early on by aligning with Japan's manufacturing might and bringing deep learning to the internet of things (IoT). The case follows the start-up as it evolves into a highly valued company with over 200 employees and global partners across various industries. It offers an overview of the AI business landscape and an explanation of deep learning. PFN's trajectory shows how technology-heavy research firms spark innovation, attract business partners and collaborators, manage as they grow, and decide what business model best suits their needs. The case is intended for use in classes on artificial intelligence, technology and operations management, marketing of complex products and technologies, entrepreneurship and strategic partnerships for research-heavy startups.

Spreadsheet supplement for case 519021.