Lightspeed ventures founder8/30/2023 ![]() ![]() ![]() ![]() He doesn’t include Mistral AI in that group. ChatGPT a 'time-saver' for parents, teachers as Canadians share how they're using the AI tool.“We’ve some people that haven’t necessarily spent a lot of time in the industry and are adding - if you could say so - a bit of generative AI sparkle” to their pitches, Moyroud said, noting that it takes time to tease out the “substance” behind some founders’ claims. He has seen an increasing number of founders mention generative AI in their pitches for funding - but he takes some of those pitches with a pinch of salt. The release of ChatGPT to the public in November was the catalyst for the current buzz, according to Moyroud at Lightspeed. The bulk of this sum comes from Microsoft (MSFT)’s $10 billion investment, announced in January, in OpenAI, the developer of popular generative AI chatbot ChatGPT.īut even excluding Microsoft’s bumper deal, the value of VC investments in generative AI was up by almost 58 per cent compared with the same period in 2022. In the first six months of 2023, they plowed $15.2 billion into generative AI companies globally, according to Pitchbook data. The investment into Mistral AI is just one of many this year by venture capitalists jostling for a seat aboard the AI rocketship. “I call it the ‘dot-ai’ bubble, and it hasn’t even started yet,” Mostaque said recently, referring to the “dot-com” bubble of the late 1990s, when speculative bets on nascent internet companies ultimately resulted in big losses for many investors. The blowout deal is just one example of the feverish excitement surrounding the potential of “generative” artificial intelligence - which can create original text, images and other content in response to prompts from users - to generate whopping returns for investors.īut some investors and people in the industry are worried the funding frenzy is turning into a bubble, with money thrown at companies that have neither earnings nor an innovative product nor the right expertise.Įmad Mostaque, founder and chief executive of Stability AI, a generative AI firm that also counts California-based Lightspeed among its funders, expects the current wave of investment in AI companies to create “the biggest bubble of all time.” “It may seem like a very big number,” he told CNN, but the company has big, global ambitions and needs a lot of expensive computing power to see that through, he said. But Antoine Moyroud, a partner at Lightspeed Venture Partners, one of the biggest backers of the fledgling firm, wasn’t fazed. French startup Mistral AI didn’t have a working product when it raised €105 million (US$118 million) in one of Europe’s largest-ever seed rounds last month. ![]()
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