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Is The AI Hype For Real? $20B In Investments Says Yes

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Source: CrunchBase

Reading Time: 3 minutes

Summary:

In the rush to participate in the AI investment frenzy, two startups – Builder.ai and Anthropic – secured $700 million early this week, with an additional $105 million being invested in AI marketing platform Insider. Despite the AI sector not being clearly defined, startups employing “AI” managed to raise $20 billion in 2023 alone. Established venture firm Bessemer Venture Partners earmarked $1 billion from its latest fund for AI investments. Bessemer partner Sameer Dholakia highlighted that “massive tectonic shifts” in AI could create “trillions of dollars of value”. However, this enthusiasm hasn’t fully transferred to the public markets, with AI-focused stocks not necessarily yielding high returns. Despite this, there remains an expectation that these AI startups will soon start to deliver significant returns, with Dholakia predicting a rapid adoption curve.

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