Investors predict a second wave of AI startups in 2024, focusing on specific sectors and moving away from building on technologies from companies like OpenAI and Google. Lisa Wu, a partner at Norwest Venture Partners, sees potential in verticalized AI, as these startups are less likely to be replicated by legacy companies. These AI applications, with deep knowledge of end-user workflows and access to industry-specific training data, could make teams more productive and services more efficient and cost-effective.
Key takeaways:
- AI startups had a turbulent year in 2023, with high-profile shutdowns and drama surrounding OpenAI and Sam Altman.
- Investors predict that the swell of funding for AI startups will continue in 2024, with the industry moving towards more sustainable businesses.
- 2024 could see a second wave of AI startups that are more verticalized and focused on specific sectors, moving away from building on top of technologies from companies like OpenAI and Google.
- Lisa Wu from Norwest Venture Partners believes that investing in verticalized AI startups could be less risky as they are less likely to be replicated by legacy companies like Microsoft and Google.