With artificial intelligence (AI) being a significant part of our lives, AI start-ups are also in high demand. Data from Crunchbase shows that from April to June, investment in AI start-ups grew to $24 billion. This is as per a report by Reuters.
After the success of OpenAI’s chatbot and personal assistant ChatGPT, the competition to adopt AI has been increasing rapidly. In the most recent quarter, total start-up funding increased 16 per cent sequentially to reach $79 billion, according to the report.
This is mostly due to investments in artificial intelligence (AI), which for the first time surpassed all other sectors in terms of size, followed by biotech and healthcare.
To add to it, several start-up funds solely focusing on AI have also come up. One such example is the OpenAI start-up fund; it’s a venture fund. It invests in early-stage, usually AI-related businesses in the fields of education, law, and research. The tagline of the company says, “Investing in start-ups with big ideas about AI.”
One of the recent fundings for an AI start-up is that of Hebbia, which raised $130 million at a valuation of $700 million. As per TechCrunch, the Series B round of the start-up was led by Andreessen Horowitz, a venture capital firm. It also saw participation from Index Ventures, Google Ventures, and Peter Thiel.