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AI predictions for 2024: What top VCs think

Dec 27, 2023 - venturebeat.com
As 2023 comes to an end, venture capitalists investing in artificial intelligence (AI) startups have shared their predictions for the industry in 2024. They expect the year to be a defining one for AI, with the potential for significant advances or setbacks. The predictions cover a range of topics, including the future of generative AI, the impact of GPU shortages, AI regulation, and the application of AI in addressing climate change. The experts also anticipate a rise and fall of generative AI startups, the convergence of data modalities in multimodal models, and the democratization of AI through open source.

The GPU shortage is seen as a persistent problem that could hinder the startup ecosystem. However, some experts believe the issue is not as severe as it seems, and the focus should be on improving the utilization of existing infrastructure. There are also predictions about big releases from tech giants like Apple and Google. The long-term shift in AI is expected to involve new architectural paradigms and the integration of both cloud and edge devices for improved performance, personalization, privacy, and security.

Key takeaways:

  • As 2023 ends, the AI industry reflects on the significant advancements and ethical debates that have occurred. The future of AI is uncertain, with predictions ranging from an "AI winter" to new breakthroughs accelerating adoption across industries.
  • Many venture capitalists predict the rise and fall of generative AI startups, with companies that didn't raise significant funds in 2023 facing an uncertain future. However, AI's potential in biotech, genome, climate, and industrial applications is exciting.
  • There are predictions of more open-source models being released in 2024, with large tech companies expected to be major contributors. However, there is a race-to-the-bottom in generative AI pricing, with companies incurring losses and hoping to make it up on volume.
  • The GPU shortage continues to be a significant problem for startups, with two potential solutions being new compute options or more efficient models/architectures. However, some believe the GPU shortage is not as acute as it seems, with the real issue being the underutilization of existing infrastructure.
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