AI Startups are raising big funds
AI startups are raising funds: "OpenAI’s expected $29 billion valuation is only the latest signal of the artificial intelligence craze even as the tech industry faces layoffs and tough economic conditions. Investors funneled more money into generative AI companies in 2022 than in the previous five years combined, reaching a total of $1.37 billion, according to Pitchbook. The excitement saw companies like AI text startup Jasper valued at $1.5 billion in October, around a year after it was founded, and image generator Stability AI reached a $1 billion valuation at the same time."
Hype around text-to-image AI models in Q3 2022 drew rapid VC investment in the generative AI space. But this did not stop deal activity from falling for the overall AI & ML vertical, where deal value fell 46.7% quarter-over-quarter.
In our latest Artificial Intelligence & Machine Learning Report, PitchBook tracks 68 product categories, and only 20 are on pace to grow in VC funding in 2022, led by intelligent robotics, supply-chain optimization, and conversational AI.
The report maps out the market and notes the emerging opportunities and startups to watch. Generative AI, neural search, and inference semiconductors are finding traction and scooping up deals in the current market. Company spotlights on AI unicorns Databricks and DataRobot show their evolving M&A and partnership priorities.