and private equity investors, who had long eschewed the sector, have also changed their view of the technology’s commercial prospects of late and begun to put money into generative AI.
In 2022 alone, 3,198 AI startups received $52.1 billion in funding in 3,396 separate deals, according to the GlobalData Financial Deals Database. 110 deals involved startups specifically working on generative AI applications, raising $2.6 billion, according to CB Insights. That was an increase over the $1.5 billion raised in 105 deals in 2021. calculated the collective value of gen AI startups at $21 billion, roughly half of which fell into the unicorn category of being worth $1 billion-plus.
The money and resources now being directed toward generative AI, and the technology’s rapidly expanding capabilities, are quickly raising the stakes for the industries most directly affected.