Professional Documents
Culture Documents
08 Avoiding Hallucinations
08 Avoiding Hallucinations
April 9, 2024
1.1 Setup
Run the following setup cell to load your API key and establish the get_completion helper function.
# Retrieve the API_KEY & MODEL_NAME variables from the IPython store
%store -r API_KEY
%store -r MODEL_NAME
client = anthropic.Anthropic(api_key=API_KEY)
1
1.2 Lesson
Some bad news: Claude sometimes “hallucinates” and makes claims that are untrue or
unjustified. The good news: there are techniques you can use to minimize hallucinations.
Below, we’ll go over a few of these techniques, namely: - Giving Claude the option to say it doesn’t
know the answer to a question - Asking Claude to find evidence before answering
However, there are many methods to avoid hallucinations, including many of the techniques
you’ve already learned in this course. If Claude hallucinates, experiment with multiple techniques
to get Claude to increase its accuracy.
1.2.1 Examples
Here is a question about general factual knowledge in answer to which Claude hallucinates
several large hippos because it’s trying to be as helpful as possible.
[ ]: # Prompt
PROMPT = "Who is the heaviest hippo of all time?"
A solution we can try here is to “give Claude an out” — tell Claude that it’s OK for it to decline
to answer, or to only answer if it actually knows the answer with certainty.
[ ]: # Prompt
PROMPT = "Who is the heaviest hippo of all time? Only answer if you know the␣
↪answer with certainty."
In the prompt below, we give Claude a long document containing some “distractor information”
that is almost but not quite relevant to the user’s question. Without prompting help, Claude
falls for the distractor information and gives an incorrect “hallucinated” answer as to the size
of Matterport’s subscriber base as of May 31, 2020.
Note: As you’ll learn later in the next chapter, it’s best practice to have the question at the
bottom after any text or document, but we put it at the top here to make the prompt easier
to read. Feel free to double click on the prompt cell to get the full prompt text (it’s very long!).
[ ]: # Prompt
PROMPT = """<question>What was Matterport's subscriber base on the precise date␣
↪of May 31, 2020?</question>
Please read the below document. Then write a brief numerical answer inside␣
↪<answer> tags.
<document>
Matterport SEC filing 10-K 2023
2
Item 1. Business
Our Company
Matterport is leading the digitization and datafication of the built world. We␣
↪believe the digital transformation of the built world will fundamentally␣
↪change the way people interact with buildings and the physical spaces around␣
↪them.
Since its founding in 2011, Matterport’s pioneering technology has set the␣
↪standard for digitizing, accessing and managing buildings, spaces and places␣
↪science, and 3D capture technology have broken down the barriers that have␣
↪kept the largest asset class in the world, buildings and physical spaces,␣
↪offline and underutilized for many years. We believe the digitization and␣
The world is rapidly moving from offline to online. Digital transformation has␣
↪made a powerful and lasting impact across every business and industry today.␣
↪trillion in 2026 with a five-year compound annual growth rate (“CAGR”) of 16.
↪3%, and digital twin investments are expected to have a five-year CAGR of 35.
↪2%. With this secular shift, there is also growing demand for the built␣
↪majority of buildings and spaces remain offline and undigitized. The global␣
↪value as of 2021, remains largely offline today, and we estimate that less␣
Matterport was among the first to recognize the increasing need for␣
↪digitization of the built world and the power of spatial data, the unique␣
↪of buildings and spaces. In the past, technology advanced physical road maps␣
↪to the data-rich, digital maps and location services we all rely on today.␣
↪vastly increase our understanding and the full potential of each and every␣
↪the fastest route from one city to another or locate the nearest coffee␣
↪shops, Matterport’s spatial data for buildings unlocks a rich set of␣
↪just as the geo-spatial mapping platforms of today have opened their mapping␣
↪e-commerce, food delivery marketplaces, and even short-term rental and home␣
3
We believe the total addressable market opportunity for digitizing the built␣
↪world is over $240 billion, and could be as high as $1 trillion as the␣
↪20 billion spaces in the world today. With the help of artificial␣
Our spatial data platform and capture of digital twins deliver value across a␣
↪diverse set of industries and use cases. Large retailers can manage␣
↪virtual open houses for hundreds of properties and thousands of visitors at␣
↪the same time, property developers can monitor the entirety of the␣
↪construction process with greater detail and speed, and insurance companies␣
↪can more precisely document and evaluate claims and underwriting assessments␣
For nearly a decade, we have been growing our spatial data platform and␣
↪expanding our capabilities in order to create the most detailed, accurate,␣
↪precision to millions of buildings and spaces of any type, shape, and size␣
↪in the world. The universal applicability of our service provides Matterport␣
↪significant scale and reach across diverse verticals and any geography. As␣
↪of December 31, 2022, our subscriber base had grown approximately 39% to␣
↪with our digital twins reaching more than 170 countries. We have digitized␣
↪representing significant scale and growth over the rest of the market.
↪the de facto building and business intelligence engine for the built world.␣
↪We believe the demand for spatial data and resulting insights for␣
4
We believe digitization and datafication represent a tremendous greenfield␣
↪opportunity for growth across this massive category and asset class. From␣
↪insurance and building repair and maintenance, our platform’s software and␣
↪savings, increase revenues and optimally manage their buildings and spaces.␣
↪and operating efficiencies in the built world can be unlocked through the␣
↪power of our spatial data platform. Our platform and data solutions have␣
↪large market opportunity and increase the value of what we believe to be the␣
↪product hardware. As of December 31, 2022, our subscriber base included over␣
↪24% of Fortune 1000 companies, with less than 10% of our total revenue␣
↪generated from our top 10 subscribers. We expect more than 80% of our␣
↪revenue to come from our software subscription and data license solutions by␣
↪2025. Our innovative 3D capture products, the Pro2 and Pro3 Cameras, have␣
↪visualization ecosystem. The Pro2 and Pro3 Cameras have driven adoption of␣
↪our solutions and have generated the unique high-quality and scaled data set␣
↪that has enabled Cortex, our proprietary AI software engine, to become the␣
↪pioneering engine for digital twin creation. With this data advantage␣
↪agnostic platform that scales and can generate new building and property␣
↪revenue increased by approximately 22% to $136.1 million for the year ended␣
↪December 31, 2022, from approximately $111.2 million for the year ended␣
↪December 31, 2021. Our gross profit decreased by $8.1 million or 14%, to $51.
↪8 million for the year ended December 31, 2022, from $60.0 million for the␣
↪and incremental costs due to the global supply chain constraints in fiscal␣
↪year 2022. Our ability to retain and grow the subscription revenue generated␣
↪business and our future growth prospects. We track our performance in this␣
↪area by measuring our net dollar expansion rate from the same set of␣
↪customers across comparable periods. Our net dollar expansion rate of 103%␣
↪for the three months ended December 31, 2022 demonstrates the stickiness and␣
5
Today, the vast majority of buildings and spaces remain undigitized. We␣
↪estimate our current serviceable addressable market includes approximately 1.
↪3 billion spaces worldwide, primarily from the real estate and travel and␣
↪as of December 31, 2022, we are continuing to penetrate the global building␣
↪stock and expand our footprint across various end markets, including␣
↪insurance and repair, and travel and hospitality. We estimate our total␣
↪that as Matterport’s unique spatial data library and property data services␣
↪based on the size of the building stock and the untapped value creation␣
↪pandemic have only reinforced and accelerated the importance of our scaled␣
↪3D capture solution that we have developed for diverse industries and␣
↪insights.
As a first mover in this massive market for nearly a decade, we have developed␣
↪and scaled our industry-leading 3D reconstruction technology powered by␣
↪Cortex, our proprietary AI-driven software engine that uses machine learning␣
↪that can be explored, analyzed and customized from a web browser on any␣
6
•Bringing offline buildings online. Traditionally, our customers needed to␣
↪conduct in-person site visits to understand and assess their buildings and␣
↪spaces. While photographs and floor plans can be helpful, these forms of␣
↪be static and rigid, and thus lack the interactive element critical to a␣
↪visits can be eliminated. Cortex helps to move the buildings and spaces from␣
↪and on demand from anywhere. After subscribers scan their buildings, our␣
↪flat, 2D imagery captured through the scans and transform them into high-␣
↪fidelity and precise digital twin models. This creates a fully automated␣
↪data represents the unique and idiosyncratic details that underlie and␣
↪compose the buildings and spaces in the human- made environment. Cortex uses␣
↪the breadth of the billions of data points we have accumulated over the␣
↪insights that allow them to confidently make assessments and decisions about␣
↪their properties. For instance, property developers can assess the amount of␣
↪natural heat and daylight coming from specific windows, retailers can ensure␣
↪each store layout is up to the same level of code and brand requirements,␣
↪and factories can insure machinery layouts meet specifications and location␣
↪December 31, 2022, our spatial data library is the clearinghouse for␣
↪multiple viewing angles. AI and ML also make costly cameras unnecessary for␣
↪platform, helping us more rapidly scale and drive towards our mission of␣
7
Our value proposition to subscribers is designed to serve the entirety of the␣
↪digital building lifecycle, from design and build to maintenance and␣
Ubiquitous Capture
Matterport has become the standard for 3D space capture. Our technology␣
↪platform empowers subscribers worldwide to quickly, easily and accurately␣
•Matterport Pro3 is our newest 3D camera that scans properties faster than␣
↪earlier versions to help accelerate project completion. Pro3 provides the␣
↪highest accuracy scans of both indoor and outdoor spaces and is designed for␣
↪high-precision LiDAR sensor can run for hours and takes millions of␣
•Matterport Pro2 is our proprietary 3D camera that has been used to capture␣
↪millions of spaces around the world with a high degree of fidelity,␣
↪500,000 square feet in size, it has become the camera of choice for many␣
↪with high fidelity and are appropriate for capturing smaller homes, condos,␣
↪short-term rentals, apartments, and more. The spherical lens image capture␣
↪technology of these devices gives Cortex robust, detailed image data to␣
8
•Smartphone Capture. Our capture apps are commercially available for both iOS␣
↪and Android. Matterport’s smartphone capture solution has democratized 3D␣
↪capture, making it easy and accessible for anyone to digitize buildings and␣
↪spaces with a recent iPhone device since the initial introduction of␣
↪Matterport for iPhone in May 2020. In April 2021, we announced the official␣
↪release of the Android Capture app, giving Android users the ability to␣
↪quickly and easily capture buildings and spaces in immersive 3D. In February␣
↪and can be used with the Matterport Capture app to capture 3D digital twins␣
↪of any physical space with increased speed, precision, and consistency.
↪captured square feet of space, we use our advanced ML and DL technologies to␣
↪that includes a deep learning neural network that uses our spatial data␣
↪rooms, where the doorways and openings are located, and what types of rooms␣
↪are present, such that those forms are compiled and aligned with dimensional␣
↪our subscribers to tap into powerful, enhanced building data and insights at␣
↪Developed using our proprietary spatial data captured with our Pro2 and Pro3␣
↪than just raw training data, Matterport’s datasets allow us to develop new␣
↪neural network architectures and evaluate them against user behavior and␣
9
•Deep learning: Connecting and optimizing the detailed neural network data␣
↪architecture of each space is key to creating robust, highly accurate 3D␣
↪spaces and the human annotations of those data provided by tens of thousands␣
↪data from multiple viewpoints and millions of spaces that train and optimize␣
↪software and technology manage the remaining steps, including white balance␣
↪addition to the Matterport digital twin itself, our spatial data consists of␣
↪convey important details about each space, its structure and its contents␣
↪with precision and fidelity. We have created a robust spatial data standard␣
10
In addition to creating a highly interactive digital experience for subscribers␣
↪through the construction of digital twins, we ask ourselves two questions␣
↪for every subscriber: (1) what is important about their building or physical␣
↪space and (2) what learnings and insights can we deliver for this space? Our␣
↪AI-powered Cortex engine helps us answer these questions using our spatial␣
↪to expand, our subscribers, partners and other third-party developers can␣
↪bring their own tools to further the breadth and depth of insights they can␣
↪us to develop a robust global ecosystem of channels and partners that extend␣
↪to continue to deploy a broad set of workflow integrations with our partners␣
↪subscription and services revenue from each add-on that is deployed to␣
11
•Add-ons: Encircle (easy-to-use field documentation tools for faster claims␣
↪processing); WP Matterport Shortcode (free Wordpress plugin that allows␣
↪System that extends value to Matterport digital twins); Private Model Emded␣
↪workflows to manage different tasks with different teams); and Guided Tours␣
↪Amazon Web Services (AWS) IoT TwinMaker to enable enterprise customers to␣
↪creates, publishes, and manages digital twins of buildings and spaces of any␣
•Breadth and depth of the Matterport platform. Our core strength is our␣
↪all-in-one spatial data platform with broad reach across diverse verticals␣
↪lifecycle for diverse end markets, including real estate, AEC, travel and␣
↪December 31, 2022, our global reach extended to subscribers in more than 170␣
↪become the global leader in the category. As of December 31, 2022, we had␣
↪spaces under management. Our leadership is primarily driven by the fact that␣
↪we were the first mover in digital twin creation. As a result of our first␣
↪mover advantage, we have amassed a deep and rich library of spatial data␣
12
•Significant network effect. With each new capture and piece of data added to␣
↪our platform, the richness of our dataset and the depth of insights from our␣
↪spaces under management grow. In addition, the combination of our ability to␣
↪turn data into insights with incremental data from new data captures by our␣
↪platform. We were a first mover in building a spatial data library for the␣
↪built world, and our leadership in gathering and deriving insights from data␣
↪continues to compound and the relevance of those insights attracts more new␣
↪subscribers.
•Massive spatial data library as the raw material for valuable property␣
↪insights. The scale of our spatial data library is a significant advantage␣
↪in deriving insights for our subscribers. Our spatial data library serves as␣
↪vital ground truth for Cortex, enabling Matterport to create powerful 3D␣
↪digital and smartphone cameras. As of December 31, 2022, our data came from␣
↪cost of site surveying and as-built modeling. AEC subscribers use the␣
↪with ease.
•Global reach and scale. We are focused on continuing to expand our AI-powered␣
↪spatial data platform worldwide. We have a significant presence in North␣
↪Singapore and several across the United States, and we are accelerating our␣
13
This includes support for LiDAR cameras, 360 cameras, smartphones, Matterport␣
↪Axis and the Matterport Pro2 and Pro3 cameras. The Pro2 camera was␣
↪In August 2022, we launched and began shipment of our Pro3 Camera along with␣
↪faster boot time, swappable batteries, and a lighter design. The Pro3 camera␣
↪can perform both indoors and outdoors and is designed for speed, fidelity,␣
↪versatility and accuracy. Along with our Pro2 Camera, we expect that future␣
↪sales of our Pro3 Camera will continue to drive increased adoption of our␣
↪building type and any subscriber need in the property life cycle. While␣
↪there are other 3D capture solution providers, very few can produce true,␣
↪capture technology offering would not be possible without our rich spatial␣
</document>"""
How do we fix this? Well, a great way to reduce hallucinations on long documents is to make
Claude gather evidence first.
In this case, we tell Claude to first extract relevant quotes, then base its answer on those
quotes. Telling Claude to do so here makes it correctly notice that the quote does not answer the
question.
[ ]: # Prompt
PROMPT = """<question>What was Matterport's subscriber base on the precise date␣
↪of May 31, 2020?</question>
Please read the below document. Then, in <scratchpad> tags, pull the most␣
↪relevant quote from the document and consider whether it answers the user's␣
<document>
Matterport SEC filing 10-K 2023
Item 1. Business
Our Company
14
Matterport is leading the digitization and datafication of the built world. We␣
↪believe the digital transformation of the built world will fundamentally␣
↪change the way people interact with buildings and the physical spaces around␣
↪them.
Since its founding in 2011, Matterport’s pioneering technology has set the␣
↪standard for digitizing, accessing and managing buildings, spaces and places␣
↪science, and 3D capture technology have broken down the barriers that have␣
↪kept the largest asset class in the world, buildings and physical spaces,␣
↪offline and underutilized for many years. We believe the digitization and␣
The world is rapidly moving from offline to online. Digital transformation has␣
↪made a powerful and lasting impact across every business and industry today.␣
↪trillion in 2026 with a five-year compound annual growth rate (“CAGR”) of 16.
↪3%, and digital twin investments are expected to have a five-year CAGR of 35.
↪2%. With this secular shift, there is also growing demand for the built␣
↪majority of buildings and spaces remain offline and undigitized. The global␣
↪value as of 2021, remains largely offline today, and we estimate that less␣
Matterport was among the first to recognize the increasing need for␣
↪digitization of the built world and the power of spatial data, the unique␣
↪of buildings and spaces. In the past, technology advanced physical road maps␣
↪to the data-rich, digital maps and location services we all rely on today.␣
↪vastly increase our understanding and the full potential of each and every␣
↪the fastest route from one city to another or locate the nearest coffee␣
↪shops, Matterport’s spatial data for buildings unlocks a rich set of␣
↪just as the geo-spatial mapping platforms of today have opened their mapping␣
↪e-commerce, food delivery marketplaces, and even short-term rental and home␣
15
We believe the total addressable market opportunity for digitizing the built␣
↪world is over $240 billion, and could be as high as $1 trillion as the␣
↪20 billion spaces in the world today. With the help of artificial␣
Our spatial data platform and capture of digital twins deliver value across a␣
↪diverse set of industries and use cases. Large retailers can manage␣
↪virtual open houses for hundreds of properties and thousands of visitors at␣
↪the same time, property developers can monitor the entirety of the␣
↪construction process with greater detail and speed, and insurance companies␣
↪can more precisely document and evaluate claims and underwriting assessments␣
For nearly a decade, we have been growing our spatial data platform and␣
↪expanding our capabilities in order to create the most detailed, accurate,␣
↪precision to millions of buildings and spaces of any type, shape, and size␣
↪in the world. The universal applicability of our service provides Matterport␣
↪significant scale and reach across diverse verticals and any geography. As␣
↪of December 31, 2022, our subscriber base had grown approximately 39% to␣
↪with our digital twins reaching more than 170 countries. We have digitized␣
↪representing significant scale and growth over the rest of the market.
↪the de facto building and business intelligence engine for the built world.␣
↪We believe the demand for spatial data and resulting insights for␣
16
We believe digitization and datafication represent a tremendous greenfield␣
↪opportunity for growth across this massive category and asset class. From␣
↪insurance and building repair and maintenance, our platform’s software and␣
↪savings, increase revenues and optimally manage their buildings and spaces.␣
↪and operating efficiencies in the built world can be unlocked through the␣
↪power of our spatial data platform. Our platform and data solutions have␣
↪large market opportunity and increase the value of what we believe to be the␣
↪product hardware. As of December 31, 2022, our subscriber base included over␣
↪24% of Fortune 1000 companies, with less than 10% of our total revenue␣
↪generated from our top 10 subscribers. We expect more than 80% of our␣
↪revenue to come from our software subscription and data license solutions by␣
↪2025. Our innovative 3D capture products, the Pro2 and Pro3 Cameras, have␣
↪visualization ecosystem. The Pro2 and Pro3 Cameras have driven adoption of␣
↪our solutions and have generated the unique high-quality and scaled data set␣
↪that has enabled Cortex, our proprietary AI software engine, to become the␣
↪pioneering engine for digital twin creation. With this data advantage␣
↪agnostic platform that scales and can generate new building and property␣
↪revenue increased by approximately 22% to $136.1 million for the year ended␣
↪December 31, 2022, from approximately $111.2 million for the year ended␣
↪December 31, 2021. Our gross profit decreased by $8.1 million or 14%, to $51.
↪8 million for the year ended December 31, 2022, from $60.0 million for the␣
↪and incremental costs due to the global supply chain constraints in fiscal␣
↪year 2022. Our ability to retain and grow the subscription revenue generated␣
↪business and our future growth prospects. We track our performance in this␣
↪area by measuring our net dollar expansion rate from the same set of␣
↪customers across comparable periods. Our net dollar expansion rate of 103%␣
↪for the three months ended December 31, 2022 demonstrates the stickiness and␣
17
Today, the vast majority of buildings and spaces remain undigitized. We␣
↪estimate our current serviceable addressable market includes approximately 1.
↪3 billion spaces worldwide, primarily from the real estate and travel and␣
↪as of December 31, 2022, we are continuing to penetrate the global building␣
↪stock and expand our footprint across various end markets, including␣
↪insurance and repair, and travel and hospitality. We estimate our total␣
↪that as Matterport’s unique spatial data library and property data services␣
↪based on the size of the building stock and the untapped value creation␣
↪pandemic have only reinforced and accelerated the importance of our scaled␣
↪3D capture solution that we have developed for diverse industries and␣
↪insights.
As a first mover in this massive market for nearly a decade, we have developed␣
↪and scaled our industry-leading 3D reconstruction technology powered by␣
↪Cortex, our proprietary AI-driven software engine that uses machine learning␣
↪that can be explored, analyzed and customized from a web browser on any␣
18
•Bringing offline buildings online. Traditionally, our customers needed to␣
↪conduct in-person site visits to understand and assess their buildings and␣
↪spaces. While photographs and floor plans can be helpful, these forms of␣
↪be static and rigid, and thus lack the interactive element critical to a␣
↪visits can be eliminated. Cortex helps to move the buildings and spaces from␣
↪and on demand from anywhere. After subscribers scan their buildings, our␣
↪flat, 2D imagery captured through the scans and transform them into high-␣
↪fidelity and precise digital twin models. This creates a fully automated␣
↪data represents the unique and idiosyncratic details that underlie and␣
↪compose the buildings and spaces in the human- made environment. Cortex uses␣
↪the breadth of the billions of data points we have accumulated over the␣
↪insights that allow them to confidently make assessments and decisions about␣
↪their properties. For instance, property developers can assess the amount of␣
↪natural heat and daylight coming from specific windows, retailers can ensure␣
↪each store layout is up to the same level of code and brand requirements,␣
↪and factories can insure machinery layouts meet specifications and location␣
↪December 31, 2022, our spatial data library is the clearinghouse for␣
↪multiple viewing angles. AI and ML also make costly cameras unnecessary for␣
↪platform, helping us more rapidly scale and drive towards our mission of␣
19
Our value proposition to subscribers is designed to serve the entirety of the␣
↪digital building lifecycle, from design and build to maintenance and␣
Ubiquitous Capture
Matterport has become the standard for 3D space capture. Our technology␣
↪platform empowers subscribers worldwide to quickly, easily and accurately␣
•Matterport Pro3 is our newest 3D camera that scans properties faster than␣
↪earlier versions to help accelerate project completion. Pro3 provides the␣
↪highest accuracy scans of both indoor and outdoor spaces and is designed for␣
↪high-precision LiDAR sensor can run for hours and takes millions of␣
•Matterport Pro2 is our proprietary 3D camera that has been used to capture␣
↪millions of spaces around the world with a high degree of fidelity,␣
↪500,000 square feet in size, it has become the camera of choice for many␣
↪with high fidelity and are appropriate for capturing smaller homes, condos,␣
↪short-term rentals, apartments, and more. The spherical lens image capture␣
↪technology of these devices gives Cortex robust, detailed image data to␣
20
•Smartphone Capture. Our capture apps are commercially available for both iOS␣
↪and Android. Matterport’s smartphone capture solution has democratized 3D␣
↪capture, making it easy and accessible for anyone to digitize buildings and␣
↪spaces with a recent iPhone device since the initial introduction of␣
↪Matterport for iPhone in May 2020. In April 2021, we announced the official␣
↪release of the Android Capture app, giving Android users the ability to␣
↪quickly and easily capture buildings and spaces in immersive 3D. In February␣
↪and can be used with the Matterport Capture app to capture 3D digital twins␣
↪of any physical space with increased speed, precision, and consistency.
↪captured square feet of space, we use our advanced ML and DL technologies to␣
↪that includes a deep learning neural network that uses our spatial data␣
↪rooms, where the doorways and openings are located, and what types of rooms␣
↪are present, such that those forms are compiled and aligned with dimensional␣
↪our subscribers to tap into powerful, enhanced building data and insights at␣
↪Developed using our proprietary spatial data captured with our Pro2 and Pro3␣
↪than just raw training data, Matterport’s datasets allow us to develop new␣
↪neural network architectures and evaluate them against user behavior and␣
21
•Deep learning: Connecting and optimizing the detailed neural network data␣
↪architecture of each space is key to creating robust, highly accurate 3D␣
↪spaces and the human annotations of those data provided by tens of thousands␣
↪data from multiple viewpoints and millions of spaces that train and optimize␣
↪software and technology manage the remaining steps, including white balance␣
↪addition to the Matterport digital twin itself, our spatial data consists of␣
↪convey important details about each space, its structure and its contents␣
↪with precision and fidelity. We have created a robust spatial data standard␣
22
In addition to creating a highly interactive digital experience for subscribers␣
↪through the construction of digital twins, we ask ourselves two questions␣
↪for every subscriber: (1) what is important about their building or physical␣
↪space and (2) what learnings and insights can we deliver for this space? Our␣
↪AI-powered Cortex engine helps us answer these questions using our spatial␣
↪to expand, our subscribers, partners and other third-party developers can␣
↪bring their own tools to further the breadth and depth of insights they can␣
↪us to develop a robust global ecosystem of channels and partners that extend␣
↪to continue to deploy a broad set of workflow integrations with our partners␣
↪subscription and services revenue from each add-on that is deployed to␣
23
•Add-ons: Encircle (easy-to-use field documentation tools for faster claims␣
↪processing); WP Matterport Shortcode (free Wordpress plugin that allows␣
↪System that extends value to Matterport digital twins); Private Model Emded␣
↪workflows to manage different tasks with different teams); and Guided Tours␣
↪Amazon Web Services (AWS) IoT TwinMaker to enable enterprise customers to␣
↪creates, publishes, and manages digital twins of buildings and spaces of any␣
•Breadth and depth of the Matterport platform. Our core strength is our␣
↪all-in-one spatial data platform with broad reach across diverse verticals␣
↪lifecycle for diverse end markets, including real estate, AEC, travel and␣
↪December 31, 2022, our global reach extended to subscribers in more than 170␣
↪become the global leader in the category. As of December 31, 2022, we had␣
↪spaces under management. Our leadership is primarily driven by the fact that␣
↪we were the first mover in digital twin creation. As a result of our first␣
↪mover advantage, we have amassed a deep and rich library of spatial data␣
24
•Significant network effect. With each new capture and piece of data added to␣
↪our platform, the richness of our dataset and the depth of insights from our␣
↪spaces under management grow. In addition, the combination of our ability to␣
↪turn data into insights with incremental data from new data captures by our␣
↪platform. We were a first mover in building a spatial data library for the␣
↪built world, and our leadership in gathering and deriving insights from data␣
↪continues to compound and the relevance of those insights attracts more new␣
↪subscribers.
•Massive spatial data library as the raw material for valuable property␣
↪insights. The scale of our spatial data library is a significant advantage␣
↪in deriving insights for our subscribers. Our spatial data library serves as␣
↪vital ground truth for Cortex, enabling Matterport to create powerful 3D␣
↪digital and smartphone cameras. As of December 31, 2022, our data came from␣
↪cost of site surveying and as-built modeling. AEC subscribers use the␣
↪with ease.
•Global reach and scale. We are focused on continuing to expand our AI-powered␣
↪spatial data platform worldwide. We have a significant presence in North␣
↪Singapore and several across the United States, and we are accelerating our␣
25
This includes support for LiDAR cameras, 360 cameras, smartphones, Matterport␣
↪Axis and the Matterport Pro2 and Pro3 cameras. The Pro2 camera was␣
↪In August 2022, we launched and began shipment of our Pro3 Camera along with␣
↪faster boot time, swappable batteries, and a lighter design. The Pro3 camera␣
↪can perform both indoors and outdoors and is designed for speed, fidelity,␣
↪versatility and accuracy. Along with our Pro2 Camera, we expect that future␣
↪sales of our Pro3 Camera will continue to drive increased adoption of our␣
↪building type and any subscriber need in the property life cycle. While␣
↪there are other 3D capture solution providers, very few can produce true,␣
↪capture technology offering would not be possible without our rich spatial␣
</document>"""
Bonus lesson Sometimes, Claude’s hallucinations can be solved by lowering the temperature
of Claude’s responses. Temperature is a measurement of answer creativity between 0 and 1, with
1 being more unpredictable and less standardized, and 0 being the most consistent.
Asking Claude something at temperature 0 will generally yield an almost-deterministic answer set
across repeated trials (although complete determinism is not guaranteed). Asking Claude something
at temperature 1 (or gradations in between) will yield more variable answers. Learn more about
temperature and other parameters here.
If you would like to experiment with the lesson prompts without changing any content above, scroll
all the way to the bottom of the lesson notebook to visit the Example Playground.
1.3 Exercises
• Exercise 8.1 - Beyoncé Hallucination
• Exercise 8.2 - Prospectus Hallucination
26
We suggest you run the cell first to see what Claude hallucinates before trying to fix it.
[ ]: # Prompt
PROMPT = "In what year did star performer Beyoncé release her eighth studio␣
↪album?"
<document>
Matterport SEC filing 10-K 2023
Item 1. Business
Our Company
Matterport is leading the digitization and datafication of the built world. We␣
↪believe the digital transformation of the built world will fundamentally␣
↪change the way people interact with buildings and the physical spaces around␣
↪them.
27
Since its founding in 2011, Matterport’s pioneering technology has set the␣
↪standard for digitizing, accessing and managing buildings, spaces and places␣
↪science, and 3D capture technology have broken down the barriers that have␣
↪kept the largest asset class in the world, buildings and physical spaces,␣
↪offline and underutilized for many years. We believe the digitization and␣
The world is rapidly moving from offline to online. Digital transformation has␣
↪made a powerful and lasting impact across every business and industry today.␣
↪trillion in 2026 with a five-year compound annual growth rate (“CAGR”) of 16.
↪3%, and digital twin investments are expected to have a five-year CAGR of 35.
↪2%. With this secular shift, there is also growing demand for the built␣
↪majority of buildings and spaces remain offline and undigitized. The global␣
↪value as of 2021, remains largely offline today, and we estimate that less␣
Matterport was among the first to recognize the increasing need for␣
↪digitization of the built world and the power of spatial data, the unique␣
↪of buildings and spaces. In the past, technology advanced physical road maps␣
↪to the data-rich, digital maps and location services we all rely on today.␣
↪vastly increase our understanding and the full potential of each and every␣
↪the fastest route from one city to another or locate the nearest coffee␣
↪shops, Matterport’s spatial data for buildings unlocks a rich set of␣
↪just as the geo-spatial mapping platforms of today have opened their mapping␣
↪e-commerce, food delivery marketplaces, and even short-term rental and home␣
28
We believe the total addressable market opportunity for digitizing the built␣
↪world is over $240 billion, and could be as high as $1 trillion as the␣
↪20 billion spaces in the world today. With the help of artificial␣
Our spatial data platform and capture of digital twins deliver value across a␣
↪diverse set of industries and use cases. Large retailers can manage␣
↪virtual open houses for hundreds of properties and thousands of visitors at␣
↪the same time, property developers can monitor the entirety of the␣
↪construction process with greater detail and speed, and insurance companies␣
↪can more precisely document and evaluate claims and underwriting assessments␣
For nearly a decade, we have been growing our spatial data platform and␣
↪expanding our capabilities in order to create the most detailed, accurate,␣
↪precision to millions of buildings and spaces of any type, shape, and size␣
↪in the world. The universal applicability of our service provides Matterport␣
↪significant scale and reach across diverse verticals and any geography. As␣
↪of December 31, 2022, our subscriber base had grown approximately 39% to␣
↪with our digital twins reaching more than 170 countries. We have digitized␣
↪representing significant scale and growth over the rest of the market.
↪the de facto building and business intelligence engine for the built world.␣
↪We believe the demand for spatial data and resulting insights for␣
29
We believe digitization and datafication represent a tremendous greenfield␣
↪opportunity for growth across this massive category and asset class. From␣
↪insurance and building repair and maintenance, our platform’s software and␣
↪savings, increase revenues and optimally manage their buildings and spaces.␣
↪and operating efficiencies in the built world can be unlocked through the␣
↪power of our spatial data platform. Our platform and data solutions have␣
↪large market opportunity and increase the value of what we believe to be the␣
↪product hardware. As of December 31, 2022, our subscriber base included over␣
↪24% of Fortune 1000 companies, with less than 10% of our total revenue␣
↪generated from our top 10 subscribers. We expect more than 80% of our␣
↪revenue to come from our software subscription and data license solutions by␣
↪2025. Our innovative 3D capture products, the Pro2 and Pro3 Cameras, have␣
↪visualization ecosystem. The Pro2 and Pro3 Cameras have driven adoption of␣
↪our solutions and have generated the unique high-quality and scaled data set␣
↪that has enabled Cortex, our proprietary AI software engine, to become the␣
↪pioneering engine for digital twin creation. With this data advantage␣
↪agnostic platform that scales and can generate new building and property␣
↪revenue increased by approximately 22% to $136.1 million for the year ended␣
↪December 31, 2022, from approximately $111.2 million for the year ended␣
↪December 31, 2021. Our gross profit decreased by $8.1 million or 14%, to $51.
↪8 million for the year ended December 31, 2022, from $60.0 million for the␣
↪and incremental costs due to the global supply chain constraints in fiscal␣
↪year 2022. Our ability to retain and grow the subscription revenue generated␣
↪business and our future growth prospects. We track our performance in this␣
↪area by measuring our net dollar expansion rate from the same set of␣
↪customers across comparable periods. Our net dollar expansion rate of 103%␣
↪for the three months ended December 31, 2022 demonstrates the stickiness and␣
30
Today, the vast majority of buildings and spaces remain undigitized. We␣
↪estimate our current serviceable addressable market includes approximately 1.
↪3 billion spaces worldwide, primarily from the real estate and travel and␣
↪as of December 31, 2022, we are continuing to penetrate the global building␣
↪stock and expand our footprint across various end markets, including␣
↪insurance and repair, and travel and hospitality. We estimate our total␣
↪that as Matterport’s unique spatial data library and property data services␣
↪based on the size of the building stock and the untapped value creation␣
↪pandemic have only reinforced and accelerated the importance of our scaled␣
↪3D capture solution that we have developed for diverse industries and␣
↪insights.
As a first mover in this massive market for nearly a decade, we have developed␣
↪and scaled our industry-leading 3D reconstruction technology powered by␣
↪Cortex, our proprietary AI-driven software engine that uses machine learning␣
↪that can be explored, analyzed and customized from a web browser on any␣
31
•Bringing offline buildings online. Traditionally, our customers needed to␣
↪conduct in-person site visits to understand and assess their buildings and␣
↪spaces. While photographs and floor plans can be helpful, these forms of␣
↪be static and rigid, and thus lack the interactive element critical to a␣
↪visits can be eliminated. Cortex helps to move the buildings and spaces from␣
↪and on demand from anywhere. After subscribers scan their buildings, our␣
↪flat, 2D imagery captured through the scans and transform them into high-␣
↪fidelity and precise digital twin models. This creates a fully automated␣
↪data represents the unique and idiosyncratic details that underlie and␣
↪compose the buildings and spaces in the human- made environment. Cortex uses␣
↪the breadth of the billions of data points we have accumulated over the␣
↪insights that allow them to confidently make assessments and decisions about␣
↪their properties. For instance, property developers can assess the amount of␣
↪natural heat and daylight coming from specific windows, retailers can ensure␣
↪each store layout is up to the same level of code and brand requirements,␣
↪and factories can insure machinery layouts meet specifications and location␣
↪December 31, 2022, our spatial data library is the clearinghouse for␣
↪multiple viewing angles. AI and ML also make costly cameras unnecessary for␣
↪platform, helping us more rapidly scale and drive towards our mission of␣
32
Our value proposition to subscribers is designed to serve the entirety of the␣
↪digital building lifecycle, from design and build to maintenance and␣
Ubiquitous Capture
Matterport has become the standard for 3D space capture. Our technology␣
↪platform empowers subscribers worldwide to quickly, easily and accurately␣
•Matterport Pro3 is our newest 3D camera that scans properties faster than␣
↪earlier versions to help accelerate project completion. Pro3 provides the␣
↪highest accuracy scans of both indoor and outdoor spaces and is designed for␣
↪high-precision LiDAR sensor can run for hours and takes millions of␣
•Matterport Pro2 is our proprietary 3D camera that has been used to capture␣
↪millions of spaces around the world with a high degree of fidelity,␣
↪500,000 square feet in size, it has become the camera of choice for many␣
↪with high fidelity and are appropriate for capturing smaller homes, condos,␣
↪short-term rentals, apartments, and more. The spherical lens image capture␣
↪technology of these devices gives Cortex robust, detailed image data to␣
33
•Smartphone Capture. Our capture apps are commercially available for both iOS␣
↪and Android. Matterport’s smartphone capture solution has democratized 3D␣
↪capture, making it easy and accessible for anyone to digitize buildings and␣
↪spaces with a recent iPhone device since the initial introduction of␣
↪Matterport for iPhone in May 2020. In April 2021, we announced the official␣
↪release of the Android Capture app, giving Android users the ability to␣
↪quickly and easily capture buildings and spaces in immersive 3D. In February␣
↪and can be used with the Matterport Capture app to capture 3D digital twins␣
↪of any physical space with increased speed, precision, and consistency.
↪captured square feet of space, we use our advanced ML and DL technologies to␣
↪that includes a deep learning neural network that uses our spatial data␣
↪rooms, where the doorways and openings are located, and what types of rooms␣
↪are present, such that those forms are compiled and aligned with dimensional␣
↪our subscribers to tap into powerful, enhanced building data and insights at␣
↪Developed using our proprietary spatial data captured with our Pro2 and Pro3␣
↪than just raw training data, Matterport’s datasets allow us to develop new␣
↪neural network architectures and evaluate them against user behavior and␣
34
•Deep learning: Connecting and optimizing the detailed neural network data␣
↪architecture of each space is key to creating robust, highly accurate 3D␣
↪spaces and the human annotations of those data provided by tens of thousands␣
↪data from multiple viewpoints and millions of spaces that train and optimize␣
↪software and technology manage the remaining steps, including white balance␣
↪addition to the Matterport digital twin itself, our spatial data consists of␣
↪convey important details about each space, its structure and its contents␣
↪with precision and fidelity. We have created a robust spatial data standard␣
35
In addition to creating a highly interactive digital experience for subscribers␣
↪through the construction of digital twins, we ask ourselves two questions␣
↪for every subscriber: (1) what is important about their building or physical␣
↪space and (2) what learnings and insights can we deliver for this space? Our␣
↪AI-powered Cortex engine helps us answer these questions using our spatial␣
↪to expand, our subscribers, partners and other third-party developers can␣
↪bring their own tools to further the breadth and depth of insights they can␣
↪us to develop a robust global ecosystem of channels and partners that extend␣
↪to continue to deploy a broad set of workflow integrations with our partners␣
↪subscription and services revenue from each add-on that is deployed to␣
36
•Add-ons: Encircle (easy-to-use field documentation tools for faster claims␣
↪processing); WP Matterport Shortcode (free Wordpress plugin that allows␣
↪System that extends value to Matterport digital twins); Private Model Emded␣
↪workflows to manage different tasks with different teams); and Guided Tours␣
↪Amazon Web Services (AWS) IoT TwinMaker to enable enterprise customers to␣
↪creates, publishes, and manages digital twins of buildings and spaces of any␣
•Breadth and depth of the Matterport platform. Our core strength is our␣
↪all-in-one spatial data platform with broad reach across diverse verticals␣
↪lifecycle for diverse end markets, including real estate, AEC, travel and␣
↪December 31, 2022, our global reach extended to subscribers in more than 170␣
↪become the global leader in the category. As of December 31, 2022, we had␣
↪spaces under management. Our leadership is primarily driven by the fact that␣
↪we were the first mover in digital twin creation. As a result of our first␣
↪mover advantage, we have amassed a deep and rich library of spatial data␣
37
•Significant network effect. With each new capture and piece of data added to␣
↪our platform, the richness of our dataset and the depth of insights from our␣
↪spaces under management grow. In addition, the combination of our ability to␣
↪turn data into insights with incremental data from new data captures by our␣
↪platform. We were a first mover in building a spatial data library for the␣
↪built world, and our leadership in gathering and deriving insights from data␣
↪continues to compound and the relevance of those insights attracts more new␣
↪subscribers.
•Massive spatial data library as the raw material for valuable property␣
↪insights. The scale of our spatial data library is a significant advantage␣
↪in deriving insights for our subscribers. Our spatial data library serves as␣
↪vital ground truth for Cortex, enabling Matterport to create powerful 3D␣
↪digital and smartphone cameras. As of December 31, 2022, our data came from␣
↪cost of site surveying and as-built modeling. AEC subscribers use the␣
↪with ease.
•Global reach and scale. We are focused on continuing to expand our AI-powered␣
↪spatial data platform worldwide. We have a significant presence in North␣
↪Singapore and several across the United States, and we are accelerating our␣
38
This includes support for LiDAR cameras, 360 cameras, smartphones, Matterport␣
↪Axis and the Matterport Pro2 and Pro3 cameras. The Pro2 camera was␣
↪In August 2022, we launched and began shipment of our Pro3 Camera along with␣
↪faster boot time, swappable batteries, and a lighter design. The Pro3 camera␣
↪can perform both indoors and outdoors and is designed for speed, fidelity,␣
↪versatility and accuracy. Along with our Pro2 Camera, we expect that future␣
↪sales of our Pro3 Camera will continue to drive increased adoption of our␣
↪building type and any subscriber need in the property life cycle. While␣
↪there are other 3D capture solution providers, very few can produce true,␣
↪capture technology offering would not be possible without our rich spatial␣
</document>"""
1.3.3 Congrats!
If you’ve solved all exercises up until this point, you’re ready to move to the next chapter. Happy
prompting!
39
1.4 Example Playground
This is an area for you to experiment freely with the prompt examples shown in this lesson and
tweak prompts to see how it may affect Claude’s responses.
[ ]: # Prompt
PROMPT = "Who is the heaviest hippo of all time?"
[ ]: # Prompt
PROMPT = "Who is the heaviest hippo of all time? Only answer if you know the␣
↪answer with certainty."
[ ]: # Prompt
PROMPT = """<question>What was Matterport's subscriber base on the precise date␣
↪of May 31, 2020?</question>
Please read the below document. Then write a brief numerical answer inside␣
↪<answer> tags.
<document>
Matterport SEC filing 10-K 2023
Item 1. Business
Our Company
Matterport is leading the digitization and datafication of the built world. We␣
↪believe the digital transformation of the built world will fundamentally␣
↪change the way people interact with buildings and the physical spaces around␣
↪them.
Since its founding in 2011, Matterport’s pioneering technology has set the␣
↪standard for digitizing, accessing and managing buildings, spaces and places␣
↪science, and 3D capture technology have broken down the barriers that have␣
↪kept the largest asset class in the world, buildings and physical spaces,␣
↪offline and underutilized for many years. We believe the digitization and␣
40
The world is rapidly moving from offline to online. Digital transformation has␣
↪made a powerful and lasting impact across every business and industry today.␣
↪trillion in 2026 with a five-year compound annual growth rate (“CAGR”) of 16.
↪3%, and digital twin investments are expected to have a five-year CAGR of 35.
↪2%. With this secular shift, there is also growing demand for the built␣
↪majority of buildings and spaces remain offline and undigitized. The global␣
↪value as of 2021, remains largely offline today, and we estimate that less␣
Matterport was among the first to recognize the increasing need for␣
↪digitization of the built world and the power of spatial data, the unique␣
↪of buildings and spaces. In the past, technology advanced physical road maps␣
↪to the data-rich, digital maps and location services we all rely on today.␣
↪vastly increase our understanding and the full potential of each and every␣
↪the fastest route from one city to another or locate the nearest coffee␣
↪shops, Matterport’s spatial data for buildings unlocks a rich set of␣
↪just as the geo-spatial mapping platforms of today have opened their mapping␣
↪e-commerce, food delivery marketplaces, and even short-term rental and home␣
We believe the total addressable market opportunity for digitizing the built␣
↪world is over $240 billion, and could be as high as $1 trillion as the␣
↪20 billion spaces in the world today. With the help of artificial␣
41
Our spatial data platform and capture of digital twins deliver value across a␣
↪diverse set of industries and use cases. Large retailers can manage␣
↪virtual open houses for hundreds of properties and thousands of visitors at␣
↪the same time, property developers can monitor the entirety of the␣
↪construction process with greater detail and speed, and insurance companies␣
↪can more precisely document and evaluate claims and underwriting assessments␣
For nearly a decade, we have been growing our spatial data platform and␣
↪expanding our capabilities in order to create the most detailed, accurate,␣
↪precision to millions of buildings and spaces of any type, shape, and size␣
↪in the world. The universal applicability of our service provides Matterport␣
↪significant scale and reach across diverse verticals and any geography. As␣
↪of December 31, 2022, our subscriber base had grown approximately 39% to␣
↪with our digital twins reaching more than 170 countries. We have digitized␣
↪representing significant scale and growth over the rest of the market.
↪the de facto building and business intelligence engine for the built world.␣
↪We believe the demand for spatial data and resulting insights for␣
↪insurance and building repair and maintenance, our platform’s software and␣
↪savings, increase revenues and optimally manage their buildings and spaces.␣
↪and operating efficiencies in the built world can be unlocked through the␣
↪power of our spatial data platform. Our platform and data solutions have␣
↪large market opportunity and increase the value of what we believe to be the␣
42
With a demonstrated track record of delivering value to our subscribers, our␣
↪offerings include software subscription, data licensing, services and␣
↪product hardware. As of December 31, 2022, our subscriber base included over␣
↪24% of Fortune 1000 companies, with less than 10% of our total revenue␣
↪generated from our top 10 subscribers. We expect more than 80% of our␣
↪revenue to come from our software subscription and data license solutions by␣
↪2025. Our innovative 3D capture products, the Pro2 and Pro3 Cameras, have␣
↪visualization ecosystem. The Pro2 and Pro3 Cameras have driven adoption of␣
↪our solutions and have generated the unique high-quality and scaled data set␣
↪that has enabled Cortex, our proprietary AI software engine, to become the␣
↪pioneering engine for digital twin creation. With this data advantage␣
↪agnostic platform that scales and can generate new building and property␣
↪revenue increased by approximately 22% to $136.1 million for the year ended␣
↪December 31, 2022, from approximately $111.2 million for the year ended␣
↪December 31, 2021. Our gross profit decreased by $8.1 million or 14%, to $51.
↪8 million for the year ended December 31, 2022, from $60.0 million for the␣
↪and incremental costs due to the global supply chain constraints in fiscal␣
↪year 2022. Our ability to retain and grow the subscription revenue generated␣
↪business and our future growth prospects. We track our performance in this␣
↪area by measuring our net dollar expansion rate from the same set of␣
↪customers across comparable periods. Our net dollar expansion rate of 103%␣
↪for the three months ended December 31, 2022 demonstrates the stickiness and␣
43
Today, the vast majority of buildings and spaces remain undigitized. We␣
↪estimate our current serviceable addressable market includes approximately 1.
↪3 billion spaces worldwide, primarily from the real estate and travel and␣
↪as of December 31, 2022, we are continuing to penetrate the global building␣
↪stock and expand our footprint across various end markets, including␣
↪insurance and repair, and travel and hospitality. We estimate our total␣
↪that as Matterport’s unique spatial data library and property data services␣
↪based on the size of the building stock and the untapped value creation␣
↪pandemic have only reinforced and accelerated the importance of our scaled␣
↪3D capture solution that we have developed for diverse industries and␣
↪insights.
As a first mover in this massive market for nearly a decade, we have developed␣
↪and scaled our industry-leading 3D reconstruction technology powered by␣
↪Cortex, our proprietary AI-driven software engine that uses machine learning␣
↪that can be explored, analyzed and customized from a web browser on any␣
44
•Bringing offline buildings online. Traditionally, our customers needed to␣
↪conduct in-person site visits to understand and assess their buildings and␣
↪spaces. While photographs and floor plans can be helpful, these forms of␣
↪be static and rigid, and thus lack the interactive element critical to a␣
↪visits can be eliminated. Cortex helps to move the buildings and spaces from␣
↪and on demand from anywhere. After subscribers scan their buildings, our␣
↪flat, 2D imagery captured through the scans and transform them into high-␣
↪fidelity and precise digital twin models. This creates a fully automated␣
↪data represents the unique and idiosyncratic details that underlie and␣
↪compose the buildings and spaces in the human- made environment. Cortex uses␣
↪the breadth of the billions of data points we have accumulated over the␣
↪insights that allow them to confidently make assessments and decisions about␣
↪their properties. For instance, property developers can assess the amount of␣
↪natural heat and daylight coming from specific windows, retailers can ensure␣
↪each store layout is up to the same level of code and brand requirements,␣
↪and factories can insure machinery layouts meet specifications and location␣
↪December 31, 2022, our spatial data library is the clearinghouse for␣
↪multiple viewing angles. AI and ML also make costly cameras unnecessary for␣
↪platform, helping us more rapidly scale and drive towards our mission of␣
45
Our value proposition to subscribers is designed to serve the entirety of the␣
↪digital building lifecycle, from design and build to maintenance and␣
Ubiquitous Capture
Matterport has become the standard for 3D space capture. Our technology␣
↪platform empowers subscribers worldwide to quickly, easily and accurately␣
•Matterport Pro3 is our newest 3D camera that scans properties faster than␣
↪earlier versions to help accelerate project completion. Pro3 provides the␣
↪highest accuracy scans of both indoor and outdoor spaces and is designed for␣
↪high-precision LiDAR sensor can run for hours and takes millions of␣
•Matterport Pro2 is our proprietary 3D camera that has been used to capture␣
↪millions of spaces around the world with a high degree of fidelity,␣
↪500,000 square feet in size, it has become the camera of choice for many␣
↪with high fidelity and are appropriate for capturing smaller homes, condos,␣
↪short-term rentals, apartments, and more. The spherical lens image capture␣
↪technology of these devices gives Cortex robust, detailed image data to␣
46
•Smartphone Capture. Our capture apps are commercially available for both iOS␣
↪and Android. Matterport’s smartphone capture solution has democratized 3D␣
↪capture, making it easy and accessible for anyone to digitize buildings and␣
↪spaces with a recent iPhone device since the initial introduction of␣
↪Matterport for iPhone in May 2020. In April 2021, we announced the official␣
↪release of the Android Capture app, giving Android users the ability to␣
↪quickly and easily capture buildings and spaces in immersive 3D. In February␣
↪and can be used with the Matterport Capture app to capture 3D digital twins␣
↪of any physical space with increased speed, precision, and consistency.
↪captured square feet of space, we use our advanced ML and DL technologies to␣
↪that includes a deep learning neural network that uses our spatial data␣
↪rooms, where the doorways and openings are located, and what types of rooms␣
↪are present, such that those forms are compiled and aligned with dimensional␣
↪our subscribers to tap into powerful, enhanced building data and insights at␣
↪Developed using our proprietary spatial data captured with our Pro2 and Pro3␣
↪than just raw training data, Matterport’s datasets allow us to develop new␣
↪neural network architectures and evaluate them against user behavior and␣
47
•Deep learning: Connecting and optimizing the detailed neural network data␣
↪architecture of each space is key to creating robust, highly accurate 3D␣
↪spaces and the human annotations of those data provided by tens of thousands␣
↪data from multiple viewpoints and millions of spaces that train and optimize␣
↪software and technology manage the remaining steps, including white balance␣
↪addition to the Matterport digital twin itself, our spatial data consists of␣
↪convey important details about each space, its structure and its contents␣
↪with precision and fidelity. We have created a robust spatial data standard␣
48
In addition to creating a highly interactive digital experience for subscribers␣
↪through the construction of digital twins, we ask ourselves two questions␣
↪for every subscriber: (1) what is important about their building or physical␣
↪space and (2) what learnings and insights can we deliver for this space? Our␣
↪AI-powered Cortex engine helps us answer these questions using our spatial␣
↪to expand, our subscribers, partners and other third-party developers can␣
↪bring their own tools to further the breadth and depth of insights they can␣
↪us to develop a robust global ecosystem of channels and partners that extend␣
↪to continue to deploy a broad set of workflow integrations with our partners␣
↪subscription and services revenue from each add-on that is deployed to␣
49
•Add-ons: Encircle (easy-to-use field documentation tools for faster claims␣
↪processing); WP Matterport Shortcode (free Wordpress plugin that allows␣
↪System that extends value to Matterport digital twins); Private Model Emded␣
↪workflows to manage different tasks with different teams); and Guided Tours␣
↪Amazon Web Services (AWS) IoT TwinMaker to enable enterprise customers to␣
↪creates, publishes, and manages digital twins of buildings and spaces of any␣
•Breadth and depth of the Matterport platform. Our core strength is our␣
↪all-in-one spatial data platform with broad reach across diverse verticals␣
↪lifecycle for diverse end markets, including real estate, AEC, travel and␣
↪December 31, 2022, our global reach extended to subscribers in more than 170␣
↪become the global leader in the category. As of December 31, 2022, we had␣
↪spaces under management. Our leadership is primarily driven by the fact that␣
↪we were the first mover in digital twin creation. As a result of our first␣
↪mover advantage, we have amassed a deep and rich library of spatial data␣
50
•Significant network effect. With each new capture and piece of data added to␣
↪our platform, the richness of our dataset and the depth of insights from our␣
↪spaces under management grow. In addition, the combination of our ability to␣
↪turn data into insights with incremental data from new data captures by our␣
↪platform. We were a first mover in building a spatial data library for the␣
↪built world, and our leadership in gathering and deriving insights from data␣
↪continues to compound and the relevance of those insights attracts more new␣
↪subscribers.
•Massive spatial data library as the raw material for valuable property␣
↪insights. The scale of our spatial data library is a significant advantage␣
↪in deriving insights for our subscribers. Our spatial data library serves as␣
↪vital ground truth for Cortex, enabling Matterport to create powerful 3D␣
↪digital and smartphone cameras. As of December 31, 2022, our data came from␣
↪cost of site surveying and as-built modeling. AEC subscribers use the␣
↪with ease.
•Global reach and scale. We are focused on continuing to expand our AI-powered␣
↪spatial data platform worldwide. We have a significant presence in North␣
↪Singapore and several across the United States, and we are accelerating our␣
51
This includes support for LiDAR cameras, 360 cameras, smartphones, Matterport␣
↪Axis and the Matterport Pro2 and Pro3 cameras. The Pro2 camera was␣
↪In August 2022, we launched and began shipment of our Pro3 Camera along with␣
↪faster boot time, swappable batteries, and a lighter design. The Pro3 camera␣
↪can perform both indoors and outdoors and is designed for speed, fidelity,␣
↪versatility and accuracy. Along with our Pro2 Camera, we expect that future␣
↪sales of our Pro3 Camera will continue to drive increased adoption of our␣
↪building type and any subscriber need in the property life cycle. While␣
↪there are other 3D capture solution providers, very few can produce true,␣
↪capture technology offering would not be possible without our rich spatial␣
</document>"""
[ ]: # Prompt
PROMPT = """<question>What was Matterport's subscriber base on the precise date␣
↪of May 31, 2020?</question>
Please read the below document. Then, in <scratchpad> tags, pull the most␣
↪relevant quote from the document and consider whether it answers the user's␣
<document>
Matterport SEC filing 10-K 2023
Item 1. Business
Our Company
Matterport is leading the digitization and datafication of the built world. We␣
↪believe the digital transformation of the built world will fundamentally␣
↪change the way people interact with buildings and the physical spaces around␣
↪them.
52
Since its founding in 2011, Matterport’s pioneering technology has set the␣
↪standard for digitizing, accessing and managing buildings, spaces and places␣
↪science, and 3D capture technology have broken down the barriers that have␣
↪kept the largest asset class in the world, buildings and physical spaces,␣
↪offline and underutilized for many years. We believe the digitization and␣
The world is rapidly moving from offline to online. Digital transformation has␣
↪made a powerful and lasting impact across every business and industry today.␣
↪trillion in 2026 with a five-year compound annual growth rate (“CAGR”) of 16.
↪3%, and digital twin investments are expected to have a five-year CAGR of 35.
↪2%. With this secular shift, there is also growing demand for the built␣
↪majority of buildings and spaces remain offline and undigitized. The global␣
↪value as of 2021, remains largely offline today, and we estimate that less␣
Matterport was among the first to recognize the increasing need for␣
↪digitization of the built world and the power of spatial data, the unique␣
↪of buildings and spaces. In the past, technology advanced physical road maps␣
↪to the data-rich, digital maps and location services we all rely on today.␣
↪vastly increase our understanding and the full potential of each and every␣
↪the fastest route from one city to another or locate the nearest coffee␣
↪shops, Matterport’s spatial data for buildings unlocks a rich set of␣
↪just as the geo-spatial mapping platforms of today have opened their mapping␣
↪e-commerce, food delivery marketplaces, and even short-term rental and home␣
53
We believe the total addressable market opportunity for digitizing the built␣
↪world is over $240 billion, and could be as high as $1 trillion as the␣
↪20 billion spaces in the world today. With the help of artificial␣
Our spatial data platform and capture of digital twins deliver value across a␣
↪diverse set of industries and use cases. Large retailers can manage␣
↪virtual open houses for hundreds of properties and thousands of visitors at␣
↪the same time, property developers can monitor the entirety of the␣
↪construction process with greater detail and speed, and insurance companies␣
↪can more precisely document and evaluate claims and underwriting assessments␣
For nearly a decade, we have been growing our spatial data platform and␣
↪expanding our capabilities in order to create the most detailed, accurate,␣
↪precision to millions of buildings and spaces of any type, shape, and size␣
↪in the world. The universal applicability of our service provides Matterport␣
↪significant scale and reach across diverse verticals and any geography. As␣
↪of December 31, 2022, our subscriber base had grown approximately 39% to␣
↪with our digital twins reaching more than 170 countries. We have digitized␣
↪representing significant scale and growth over the rest of the market.
↪the de facto building and business intelligence engine for the built world.␣
↪We believe the demand for spatial data and resulting insights for␣
54
We believe digitization and datafication represent a tremendous greenfield␣
↪opportunity for growth across this massive category and asset class. From␣
↪insurance and building repair and maintenance, our platform’s software and␣
↪savings, increase revenues and optimally manage their buildings and spaces.␣
↪and operating efficiencies in the built world can be unlocked through the␣
↪power of our spatial data platform. Our platform and data solutions have␣
↪large market opportunity and increase the value of what we believe to be the␣
↪product hardware. As of December 31, 2022, our subscriber base included over␣
↪24% of Fortune 1000 companies, with less than 10% of our total revenue␣
↪generated from our top 10 subscribers. We expect more than 80% of our␣
↪revenue to come from our software subscription and data license solutions by␣
↪2025. Our innovative 3D capture products, the Pro2 and Pro3 Cameras, have␣
↪visualization ecosystem. The Pro2 and Pro3 Cameras have driven adoption of␣
↪our solutions and have generated the unique high-quality and scaled data set␣
↪that has enabled Cortex, our proprietary AI software engine, to become the␣
↪pioneering engine for digital twin creation. With this data advantage␣
↪agnostic platform that scales and can generate new building and property␣
↪revenue increased by approximately 22% to $136.1 million for the year ended␣
↪December 31, 2022, from approximately $111.2 million for the year ended␣
↪December 31, 2021. Our gross profit decreased by $8.1 million or 14%, to $51.
↪8 million for the year ended December 31, 2022, from $60.0 million for the␣
↪and incremental costs due to the global supply chain constraints in fiscal␣
↪year 2022. Our ability to retain and grow the subscription revenue generated␣
↪business and our future growth prospects. We track our performance in this␣
↪area by measuring our net dollar expansion rate from the same set of␣
↪customers across comparable periods. Our net dollar expansion rate of 103%␣
↪for the three months ended December 31, 2022 demonstrates the stickiness and␣
55
Today, the vast majority of buildings and spaces remain undigitized. We␣
↪estimate our current serviceable addressable market includes approximately 1.
↪3 billion spaces worldwide, primarily from the real estate and travel and␣
↪as of December 31, 2022, we are continuing to penetrate the global building␣
↪stock and expand our footprint across various end markets, including␣
↪insurance and repair, and travel and hospitality. We estimate our total␣
↪that as Matterport’s unique spatial data library and property data services␣
↪based on the size of the building stock and the untapped value creation␣
↪pandemic have only reinforced and accelerated the importance of our scaled␣
↪3D capture solution that we have developed for diverse industries and␣
↪insights.
As a first mover in this massive market for nearly a decade, we have developed␣
↪and scaled our industry-leading 3D reconstruction technology powered by␣
↪Cortex, our proprietary AI-driven software engine that uses machine learning␣
↪that can be explored, analyzed and customized from a web browser on any␣
56
•Bringing offline buildings online. Traditionally, our customers needed to␣
↪conduct in-person site visits to understand and assess their buildings and␣
↪spaces. While photographs and floor plans can be helpful, these forms of␣
↪be static and rigid, and thus lack the interactive element critical to a␣
↪visits can be eliminated. Cortex helps to move the buildings and spaces from␣
↪and on demand from anywhere. After subscribers scan their buildings, our␣
↪flat, 2D imagery captured through the scans and transform them into high-␣
↪fidelity and precise digital twin models. This creates a fully automated␣
↪data represents the unique and idiosyncratic details that underlie and␣
↪compose the buildings and spaces in the human- made environment. Cortex uses␣
↪the breadth of the billions of data points we have accumulated over the␣
↪insights that allow them to confidently make assessments and decisions about␣
↪their properties. For instance, property developers can assess the amount of␣
↪natural heat and daylight coming from specific windows, retailers can ensure␣
↪each store layout is up to the same level of code and brand requirements,␣
↪and factories can insure machinery layouts meet specifications and location␣
↪December 31, 2022, our spatial data library is the clearinghouse for␣
↪multiple viewing angles. AI and ML also make costly cameras unnecessary for␣
↪platform, helping us more rapidly scale and drive towards our mission of␣
57
Our value proposition to subscribers is designed to serve the entirety of the␣
↪digital building lifecycle, from design and build to maintenance and␣
Ubiquitous Capture
Matterport has become the standard for 3D space capture. Our technology␣
↪platform empowers subscribers worldwide to quickly, easily and accurately␣
•Matterport Pro3 is our newest 3D camera that scans properties faster than␣
↪earlier versions to help accelerate project completion. Pro3 provides the␣
↪highest accuracy scans of both indoor and outdoor spaces and is designed for␣
↪high-precision LiDAR sensor can run for hours and takes millions of␣
•Matterport Pro2 is our proprietary 3D camera that has been used to capture␣
↪millions of spaces around the world with a high degree of fidelity,␣
↪500,000 square feet in size, it has become the camera of choice for many␣
↪with high fidelity and are appropriate for capturing smaller homes, condos,␣
↪short-term rentals, apartments, and more. The spherical lens image capture␣
↪technology of these devices gives Cortex robust, detailed image data to␣
58
•Smartphone Capture. Our capture apps are commercially available for both iOS␣
↪and Android. Matterport’s smartphone capture solution has democratized 3D␣
↪capture, making it easy and accessible for anyone to digitize buildings and␣
↪spaces with a recent iPhone device since the initial introduction of␣
↪Matterport for iPhone in May 2020. In April 2021, we announced the official␣
↪release of the Android Capture app, giving Android users the ability to␣
↪quickly and easily capture buildings and spaces in immersive 3D. In February␣
↪and can be used with the Matterport Capture app to capture 3D digital twins␣
↪of any physical space with increased speed, precision, and consistency.
↪captured square feet of space, we use our advanced ML and DL technologies to␣
↪that includes a deep learning neural network that uses our spatial data␣
↪rooms, where the doorways and openings are located, and what types of rooms␣
↪are present, such that those forms are compiled and aligned with dimensional␣
↪our subscribers to tap into powerful, enhanced building data and insights at␣
↪Developed using our proprietary spatial data captured with our Pro2 and Pro3␣
↪than just raw training data, Matterport’s datasets allow us to develop new␣
↪neural network architectures and evaluate them against user behavior and␣
59
•Deep learning: Connecting and optimizing the detailed neural network data␣
↪architecture of each space is key to creating robust, highly accurate 3D␣
↪spaces and the human annotations of those data provided by tens of thousands␣
↪data from multiple viewpoints and millions of spaces that train and optimize␣
↪software and technology manage the remaining steps, including white balance␣
↪addition to the Matterport digital twin itself, our spatial data consists of␣
↪convey important details about each space, its structure and its contents␣
↪with precision and fidelity. We have created a robust spatial data standard␣
60
In addition to creating a highly interactive digital experience for subscribers␣
↪through the construction of digital twins, we ask ourselves two questions␣
↪for every subscriber: (1) what is important about their building or physical␣
↪space and (2) what learnings and insights can we deliver for this space? Our␣
↪AI-powered Cortex engine helps us answer these questions using our spatial␣
↪to expand, our subscribers, partners and other third-party developers can␣
↪bring their own tools to further the breadth and depth of insights they can␣
↪us to develop a robust global ecosystem of channels and partners that extend␣
↪to continue to deploy a broad set of workflow integrations with our partners␣
↪subscription and services revenue from each add-on that is deployed to␣
61
•Add-ons: Encircle (easy-to-use field documentation tools for faster claims␣
↪processing); WP Matterport Shortcode (free Wordpress plugin that allows␣
↪System that extends value to Matterport digital twins); Private Model Emded␣
↪workflows to manage different tasks with different teams); and Guided Tours␣
↪Amazon Web Services (AWS) IoT TwinMaker to enable enterprise customers to␣
↪creates, publishes, and manages digital twins of buildings and spaces of any␣
•Breadth and depth of the Matterport platform. Our core strength is our␣
↪all-in-one spatial data platform with broad reach across diverse verticals␣
↪lifecycle for diverse end markets, including real estate, AEC, travel and␣
↪December 31, 2022, our global reach extended to subscribers in more than 170␣
↪become the global leader in the category. As of December 31, 2022, we had␣
↪spaces under management. Our leadership is primarily driven by the fact that␣
↪we were the first mover in digital twin creation. As a result of our first␣
↪mover advantage, we have amassed a deep and rich library of spatial data␣
62
•Significant network effect. With each new capture and piece of data added to␣
↪our platform, the richness of our dataset and the depth of insights from our␣
↪spaces under management grow. In addition, the combination of our ability to␣
↪turn data into insights with incremental data from new data captures by our␣
↪platform. We were a first mover in building a spatial data library for the␣
↪built world, and our leadership in gathering and deriving insights from data␣
↪continues to compound and the relevance of those insights attracts more new␣
↪subscribers.
•Massive spatial data library as the raw material for valuable property␣
↪insights. The scale of our spatial data library is a significant advantage␣
↪in deriving insights for our subscribers. Our spatial data library serves as␣
↪vital ground truth for Cortex, enabling Matterport to create powerful 3D␣
↪digital and smartphone cameras. As of December 31, 2022, our data came from␣
↪cost of site surveying and as-built modeling. AEC subscribers use the␣
↪with ease.
•Global reach and scale. We are focused on continuing to expand our AI-powered␣
↪spatial data platform worldwide. We have a significant presence in North␣
↪Singapore and several across the United States, and we are accelerating our␣
63
This includes support for LiDAR cameras, 360 cameras, smartphones, Matterport␣
↪Axis and the Matterport Pro2 and Pro3 cameras. The Pro2 camera was␣
↪In August 2022, we launched and began shipment of our Pro3 Camera along with␣
↪faster boot time, swappable batteries, and a lighter design. The Pro3 camera␣
↪can perform both indoors and outdoors and is designed for speed, fidelity,␣
↪versatility and accuracy. Along with our Pro2 Camera, we expect that future␣
↪sales of our Pro3 Camera will continue to drive increased adoption of our␣
↪building type and any subscriber need in the property life cycle. While␣
↪there are other 3D capture solution providers, very few can produce true,␣
↪capture technology offering would not be possible without our rich spatial␣
</document>"""
64