Startup funding may have plunged so far in 2023, but one sector seems to have missed the memo: generative A.I. So far in 2023, valuations for buzzy artificial intelligence startups continue to soar. And despite the prices, venture capital investors are not only willing, but excited, to keep fueling the fire.
A host of A.I. startups have raised cash recently, including OpenAI rival Anthropic, A.I.-powered presentation startup Tome, and Typeface, which uses A.I. to generate marketing content for companies. The sector is capturing the interest of venture capital investors, even in an otherwise chilly private market. That’s perhaps one reason why the rise of A.I. valuations looks so startling: generative A.I. “is where the outliers are happening right now—It's even more pronounced because that's juxtaposed not with a hot market, but a cooler market,” David Beisel, co-founder and partner at NextView Ventures, which has several A.I. portfolio companies, told Fortune.
