The Hindu | 7 August 2023
A month ago, generative AI startup Typeface raised $100 million at a valuation of $1 billion. Around the same time, French startup Mistral AI received $113 million funding without a working product in sight. Separately, media reports revealed open-source platform Hugging Face raised $200 million at a $4 billion valuation. Such multi-million dollar deals reveal a rare spot of joy for venture capitalists facing a dwindling startup market. While interest in startups building AI products has grown among VCs in the light of OpenAI’s ChatGPT, some see a bubble in the making.
“Generative AI is in a bubble. And this time the wrong assumption is that generative AI is either the product or the innovation,” said Vin Vashishta, founder of data consulting firm V Squared