The gold rush is on. Yet intermittent investment manias are par for the course. How long will this one last? Magnitude, duration, and impact remain key points of interest.
Recommended Reading
The article discusses the increasing involvement of corporations in AI investing, highlighting major investments made by companies like Amazon and Microsoft. It also analyzes trends in strategic investments, sector focus, and M&A activity in the AI space.
The latest group of Y Combinator companies will be in the Bay Area in person.
In 2023, the global AI industry consists of roughly 58,000 companies worldwide, with the United States housing approximately 14,700 of them, a figure that has more than doubled since 2017. Around 115 million companies globally are currently using AI, which accounts for 35% of all companies, while an additional 42% are exploring AI adoption. China leads in AI deployment with a 58% rate, followed by India at 57%, with the United States at a lower 25%. The US is recognized for its top AI capacity, excelling in talent, infrastructure, research, development, and commercial viability. AI funding has grown significantly, reaching $93.5 billion in 2021, and global AI revenue is estimated to double from $95.6 billion in 2021 to approximately $207.9 billion in 2023, with expectations of surpassing $1.8 trillion by 2030. Baidu is the leading patent owner with 13,993 patent families, showcasing a dynamic and expanding AI landscape.
The Biden administration released an executive order outlining safety and security requirements for the use of AI technology. The order could impact AI-focused startups, including the need for red-team testing, standards for biological synthesis screening, labeling AI-generated content, support for AI-enabled educational tools, and streamlining visa criteria for skilled immigrants.
OpenAI's recent update to ChatGPT, allowing it to interact with PDFs, has raised concerns for startups that have built their businesses around "wrapping" ChatGPT's API. These startups may struggle to offer unique services now that ChatGPT can handle PDFs directly, potentially impacting their viability and valuation.
Emad Mostaque, the CEO of open-source AI company Stability AI, says AI will be the "biggest bubble of all time."
As the AI market continues to balloon, experts are warning that its VC-driven rise is eerily similar to that of the dot com bubble.
In unrelated news, agency wants to teach folks how to spot a pyramid scheme
Artificial intelligence will shake up many professions, but many AI startups are likely to fail, as tech startups did during the dot-com bubble, a key VC investor says.
Jasper, a generative AI startup that raised $125 million in a Series A round at a valuation of $1.5 billion just nine months ago has cut staff, its co-founder and CEO Dave Rogenmoser announced in a LinkedIn post on Tuesday. Explaining the decision, he stated, "While we’ve served many different use-cases through all of this,
From fundraising more than $100 million to hemorrhaging top talent the firm that makes Stable Diffusion has had a heck of a year.