By spring of 2023, the massive popularity of apps like ChatGPT had prompted a mass scramble among businesses trying to implement the latest advances in generative artificial intelligence. One year later, the craze continues. In turn, a new tech economy has emerged to help businesses develop and deploy AI-powered apps.
The use cases are wide-ranging and far-reaching. Model maker OpenAI, a $86 billion company, counts customers from Morgan Stanley to the government of Iceland, while its rival Anthropic ($18.4 billion) is used by Bridgewater and the Boston Consulting Group. Databricks, $43 billion, sells its data analytics and AI deployment software to Shell and the United States Postal Service. For the startups, the technology has evolved from capturing customers’ imaginations to capturing billions of dollars in collective revenue.
They have also captured the attention of Silicon Valley investors at a time when the fundraising market continues to pose difficulty for other once-hot sectors. This year, companies have raised a total of $34.7 billion in funding. Nearly one-third of that total comes from OpenAI, thanks to some $10 billion from Microsoft. Much more comes from other ascendant AI research firms like Anthropic ($7.7 billion raised), Cohere ($445 million) and Mistral AI ($528 million). Underlying them are a slew of infrastructure tools that are helping companies to implement the technology.
Other forms of AI development are seeing traction too. Take Anduril, which has raised $2.8 billion for defense tech; Insitro, which stockpiled a $643 million cash pile for drug discovery; or Figure AI, which raised $754 million to create humanoid robots. Then, there are companies that are seamlessly layering the latest advances in AI into their own apps. Abridge uses voice recognition and language summarization to deliver automated documentation of your visit to the doctor’s office. Notion is making inroads into uprooting Google Workspace or Microsoft Office, while Perplexity wants to reinvent the search engine.
The artificial intelligence sector has never been more competitive.
Michel Ouellette JMD, ll.l., ll.m.
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