Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Startups Weekly: Is the wind going out of the AI sails? | TechCrunch

Apr 19, 2024 - techcrunch.com
The AI industry is experiencing a slowdown in investment, with a 20% decrease in 2023 compared to the previous year, according to a report from Stanford’s Institute for Human-Centered Artificial Intelligence. Despite this, certain segments like generative AI continue to attract significant funding. The slowdown is attributed to a crowded market and high costs of building AI models, with funding now flowing more towards established companies. However, there is still a strong belief in the future of AI, especially in its potential to boost efficiency and spark innovation across different sectors.

In startup news, Airchat, a high-tech walkie-talkie app, is gaining popularity on the App Store. Noname Security, a cybersecurity startup, is being acquired by Akamai Technologies for $500 million. Humane is pitching a $699 wearable, the Ai Pin, and Betaworks is developing AI agents designed to automate mundane tasks. In fundraising news, HR tech company Rippling raised $200 million in fresh capital, spend management startup Ramp secured another $150 million, and therapy startup Two Chairs received a $72 million cash infusion.

Key takeaways:

  • The AI industry is experiencing a significant slowdown in investment, with overall investments dropping by 20% in 2023 compared to the previous year, according to a report from Stanford’s Institute for Human-Centered Artificial Intelligence (HAI).
  • Despite the general downturn, certain segments like generative AI continue to attract significant funding, indicating a selective yet substantial interest in specific AI applications.
  • Investors are becoming more selective and are now more interested in seeing real, solid returns rather than just investing in hopeful growth.
  • Despite the slowdown in investment, there is still a strong belief in the future of AI, especially in ways it can boost efficiency and spark innovation across different sectors.
View Full Article

Comments (0)

Be the first to comment!