It is perhaps an understatement to note that key suppliers and enablers of artificial intelligence technology are having a banner year. While large cloud infrastructure and software companies are driving the majority of capital investments in the AI sector, venture funding has long been focused on developing the underlying technology and applications that employ it. Over the last four years, more than USD 192 billion across 12,000 transactions have been invested into AI companies by the venture capital community, according to the CB Insights. Although AI-focused venture funding in 2Q23 fell 38% quarter over quarter, excluding a USD 10 billion funding round for one company, Open AI, in 1Q23, venture funding in the technology rose 81% in the same quarter. As is typical in venture capital, not all of those investments will deliver positive outcomes. However for public markets, consumers and enterprises, it will be exciting to see what the successful new AI-powered applications can profitably accomplish.
Source: CB Insights, August 2023