According to a venture capital company Accel survey, generative artificial intelligence (GenAI) businesses are now the main force behind unicorns, or startups valued at $1 billion, accounting for 60% of all new startups.
According to the analysis, financing for GenAI businesses in Europe and Israel was close to $1 billion over the past 12 months, compared to nearly $14 billion for those in the United States. However, this comparison is distorted by a $10 billion investment in OpenAI alone.
Philippe Botteri, a partner at Accel, stated in an interview that “the investment going into the basic models – we will see it coming down.” “A relatively restricted group of firms who have received a disproportionate percentage of the cash…
With support from Microsoft, OpenAI, Meta, and other companies have built AI foundation models that can produce text, graphics, or other types of media in response to commands.
According to the survey, Europe, which is home to AI businesses like Synthesia and Stability AI and has a similar rate of citations, already produces 50% more AI articles than the United States.
“In the future, the money is going to be directed more towards a company like Synthesia for developing applications, then we are going to get to a more normalized balance where we expect a two-to-one (funding) ratio between U.S. and Europe,” Botteri stated.
According to the survey, by the end of the third quarter, IT heavyweights from Microsoft to Nvidia (NVDA.O) had increased their market valuation by $2.4 trillion over the previous 12 months thanks to the promise of AI.
Botteri anticipates that niche AI applications geared at cybersecurity, healthcare, construction, and law will become more popular.
