The markets are experiencing an artificial intelligence (AI) gold rush. There are at least 50 AI companies being incubated at Y Combinator. And new AI startups keep cropping up with bigger and bigger valuations. AI company Cohere is reportedly looking to raise money at a $6 billion-plus valuation. Stability AI is reportedly seeking a $4 billion valuation. Mobius AI — founded by four AI researchers from Google — reached a roughly $100 million valuation just one week after launching.
Venture capitalists (VCs) can’t get enough. According to PitchBook, investors plowed $4.8 billion across 262 generative AI deals globally in 2021. In 2022, investors poured $4.5 billion into the sector across 269 deals. And VC firms have already sunk $3.6 billion into AI companies in the U.S. so far this year.
In this episode of Startup Insider, Allison Brickell and Vin Narayanan discuss how history seems to be repeating itself — and how investors should evaluate AI investments.
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