Evening Brief – 03.09.23
Generative AI is the topic du jour in the tech investment world right now as it is revolutionizing how we experience the internet and the world around us, fueled by the rise of ChatGPT last November – which is about to receive $10 billion from Microsoft.
Generative AI refers to algorithms that can generate text, images and other media when prompted by users and has far-reaching applications in many sectors.
But beyond the headlines, a wave of startups has already entered the market and are rapidly expanding the use cases for generative AI. So far this week generative AI startups have raised hundreds of millions of dollars from venture capital firms.
Salesforce Ventures, the venture capital arm of Salesforce Inc., announced the launch of a new $250 million fund that seeks to invest in generative AI startups. In addition, conversational AI startup Amelia LLC raised $175 million via BuildGroup and Monroe Capital, while Humane Inc., a partner of OpenAI, raised $100 million.
Many similar startups have received little to no equity funding, signaling that there is still a massive opportunity for investors to get in early on this potentially transformative technology – if generative AI can be approached responsibly, as the ethical implications are not yet well-defined.