According to venture capital firm Accel, 60% of the new startups that have reached this milestone in recent times are driven by GenAI
Generative artificial intelligence (GenAI) companies are playing a crucial role in the emergence of unicorns (startups valued at $1 billion or more). According to a report by venture capital firm Accel, 60% of the new startups that have reached this mark in recent times are driven by GenAI.
Funding for GenAI startups in Europe and Israel has reached around US$ 1 billion in the last 12 months, compared to more than US$ 14 billion invested in the United States. It’s worth noting that the latter figure is somewhat skewed due to the $10 billion earmarked exclusively for OpenAI, which owns ChatGPT.
“A very limited number of companies that have attracted a disproportionate amount of capital… the investment going into fundamental models – we will see that diminish,” said Philippe Botteri, a partner at Accel, in an interview with Reuters.
Europe in the research spotlight
The report also revealed that Europe is excelling in the area of generative artificial intelligence research, producing 50% more publications compared to the United States, with a similar citation rate.
In the future, the money will be directed more towards the development of applications, then we will reach a more normalized balance, where we expect a ratio (of funding) of two to one between the US and Europe.
Philippe Botteri, partner at Accel
Finally, the report also noted that tech giants such as Microsoft and Nvidia have added $2.4 trillion to their market capitalization in the last 12 months, driven by the potential of artificial intelligence.