One quick thing: Fireside Ventures booked 4,500% profit on Mamaearth investment 

In today’s newsletter: 

• This is a war, we will win, says Byju Raveendran
• Azure boosts ChatGPT adoption
• Need SEBI-like regulator: Dream11's Harsh Jain

Was this newsletter forwarded to you? You can sign up for Tech3 here

It is a critical time for the edtech company Byju's as it navigates through rapidly depleting funds while a series of troubles continue to haunt it.

To pull through, founder Byju Raveendran is now seeking the support of his top brass.

Raveendran, today, convened a meeting with the firm's senior management to inform them of the current business and liquidity situation.

Addressing the 50 top leaders, Raveendran declared that the company was engaged in a multi-front war that they would ultimately emerge victorious from.

"A true entrepreneur is a war leader. What Byju’s is going through can only be seen as a war on multiple fronts against all odds,” Raveendran told his top brass.

CEO Arjun Mohan outlined Byju's 3.0, emphasising a strategic shift from aggressive sales tactics to personalised, deep tech-driven education solutions. 

• This approach, he stated, would focus on delivering the right products to the right people without merely maximising sales—a departure from previous models

Raveendran also provided updates on the litigation regarding term loan B, the ED notice on FEMA violation, the completion of the FY23 audit, and the resolution of the Davidson Kempner loan.

• Meanwhile, Byju's chief urged the team to play their part in mitigating the impact of the cost cuts.

This comes as the embattled edtech company strives to raise funds through various channels to maintain operations.

• Byju's faces a pressing need for Rs 500-600 crore by March to settle pending dues

It's not only Byju's. Even its rival Unacademy offered a glimpse into how its business is performing.

The Bengaluru-based startup, India's second-most-valued edtech company, achieved cash flow positivity in the April-June quarter, founder Gaurav Munjal informed his employees via a Slack message.

• This comes months after the company undertook cost-cutting measures, including mass layoffs

ChatGPT took the enterprise route in August to begin generating revenue, and it turned out that Microsoft became the catalyst for its rapid adoption.

In less than four months, ChatGPT Enterprise, the AI chatbot's business tier, has managed to acquire 22,000-25,000 customers globally, according to estimates shared with us by UnearthInsight.

• However, nearly 70-79% of this traction stems from Azure and OpenAI's partnership
  
  
• While customers acquired through GPT-4's direct channel only account for around 16%  at the moment

In India, approximately 55-75 listed companies and over 300 startups are utilising ChatGPT.

These numbers underscore OpenAI and ChatGPT's initial reliance on the Microsoft partnership to secure customers.

Analysts declined to provide an immediate assessment of the adoption rate, noting that nearly 80% of these customers are still using ChatGPT for proof-of-concept purposes.

• The success of ChatGPT Enterprise will become apparent once the numbers of yearly subscription renewals are released
  
  
• Another analyst expressed no surprise if Microsoft accounts for 90% of its customers in the long run

Microsoft's backing and product integration as a major stakeholder in OpenAI are driving adoption. 

However, enterprise customers, according to analysts, have significant concerns about data privacy, protection of intellectual property, and other issues.

• As concerns about OpenAI grow, non-startup alternatives like IBM, Google, and Amazon could gain market share with their in-house generative AI offerings

Go deeper

Will a SEBI-like regulator be the solution to regulate India's real-money gaming sector? Dream11 cofounder Harsh Jain believes so.

Jain said that such a body would provide clarity to companies on what they are allowed and not allowed to do, thereby expediting innovation in the sector and driving its growth.

In April, the Ministry of Electronics and Information Technology (MeitY) issued online gaming regulations that would allow self-regulatory organisation (SROs) to decide whether real-money games should be allowed to operate in India. 

• However, the ministry has yet to designate any SROs for the sector

The government has reportedly formed a group of ministers, comprising home minister Amit Shah, finance minister Nirmala Sitharaman, IT minister Ashwini Vaishnaw and I&B minister Anurag Thakur, to formulate a comprehensive regulatory framework for the sector.

This move comes amid a turbulent period for the real-money sector, which is grappling with dual challenges of higher tax rates and retrospective tax notices that have impacted several companies in recent months. 

• As per the government's latest count, about 71 companies have received show-cause notices worth Rs 1.12 lakh crore
  
  
• Companies such as Dream11 parent Dream Sports have challenged these notices in court

Also read: Death knell, fight for survival: Retrospective tax haunts India’s real-money gaming sector

Jain, who chairs the industry body Internet and Mobile Association of India (IAMAI), believes that fantasy sports shares more similarities with the stock market than gambling or betting.

"You can put in money, pick a portfolio of stocks like a team of players and then based on the relative performance of that portfolio or that team, one can win or lose money. Betting and gambling are usually based on the outcome of an event," he said.

Despite facing mounting regulatory challenges, Gameskraft, a bootstrapped skill gaming company, has maintained consistent growth in India.

The firm witnessed a 14.1% year-on-year (YoY) increase in profits, reaching Rs 1,061.86 crore in FY23, while operational revenue surged 24.8% YoY to Rs 2,662.51 crore. Read the full story 

• IIT Bombay is joining an industry alliance with Meta Platforms and IBM to promote open-source artificial intelligence development.

• Britain has proposed new age-check guidance to protect children from accessing pornography online, including using AI to verify a user's age.

Grand Theft Auto fans, rejoice! 

The long-awaited trailer for Grand Theft Auto 6 has finally dropped (all thanks to yet another leak!), and it's everything we've been hoping for and more.

Set in the neon-drenched streets of Vice City, the trailer introduces us to Lucia, our new female protagonist, as she embarks on a crime spree with her partner.

• With its stunning visuals and pulsating soundtrack, the trailer is sure to get fans hyped for the game's release in 2025

Be sure to check out the trailer! 

Event alert: CNBC-TV18 & Moneycontrol will be hosting the most definitive summit on Artificial Intelligence with top global and Indian voices on December 16th in Bengaluru. Click here to register and get access to the 'Palo Alto Networks presents CNBC-TV18 & Moneycontrol Global AI Conclave'.