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In the rapidly evolving AI landscape, the old playbook of startups disrupting incumbents may not hold as we might expect. I recently came across a thought-provoking article that dives deep into why AI is a different beast altogether in the technology revolution. 🚀🧠 Check out the article here https://lnkd.in/ez4ptnMd The piece argues compellingly that unlike previous shifts such as mobile and the Internet, AI introduces complexities that redefine competitive dynamics. Startups are at a huge disadvantage here...more than ever. Are you seeing these dynamics play out in your sector? How should startups navigate this new terrain where data is king but access is guarded? #AI #Startups #BigData #TechInnovation #BusinessStrategy

Global startup funding increased in the second quarter to $79 billion, up 16% from the previous quarter and 12% over the $71 billion invested in Q2 2023. Mega-rounds—$100 million or more funding—accounted for much of the quarter's rise, indicating a potential for future growth in the startup ecosystem. The AI financing sector experienced remarkable growth, doubling quarter-over-quarter to $24 billion. This accounted for 30% of all dollars invested, making it the highest quarter for AI funding in years. Importantly, this surge in AI funding also led to a significant increase in M&A transactions in Q2, providing a much-needed boost to the liquidity of venture capital markets. Crunchbase data indicates we are eight to nine quarters into the current financing slump, a period marked by decreased funding available for startups. While this quarter's funding was among the biggest since Q1 2023, it does not necessarily indicate a venture market recovery. Since 2023, financing has changed quarter by quarter, reflecting a rise in significant expansion rounds for pre-#IPO businesses and AI #startups. This past quarter has been no exception. According to Crunchbase data, #AI was the dominant industry for the first time since the launch of #OpenAI's #ChatGPT. Despite investor concerns about revenue and expensive valuations, Q2 raised the most money in the AI sector in recent years, totaling $24 billion. https://buff.ly/45UCoUb

Keys to Creating an AI Startup It has never been easier to create an AI startup. Today, we are at a turning point in the tech ecosystem. The availability of foundational large-scale AI models allows startups to launch innovative solutions in a matter of weeks. https://lnkd.in/dwywKwNN #ArtificialIntelligence, #AI

Open AI's Rival Startup - Anthropic raises $100M . . . Anthropic, the artificial intelligence startup co-founded by former OpenAI leaders, is set to receive a $100 million investment from South Korea's SK Telecom (SKT). This comes on the heels of a $450 million Series C funding round led by Spark Capital just three months ago. SKT's investment is more than just financial support. The two companies plan to co-develop a multilingual large language model (LLM) tailored for global telco firms. Anthropic's Chief Science Officer, Jared Kaplan, will spearhead the customization and product roadmap. Anthropic's CEO, Dario Amodei, expressed excitement about the partnership, stating, “SKT has incredible ambitions to use AI to transform the telco industry. We’re excited to combine our AI expertise with SKT’s industry knowledge to build an LLM that is customized for telcos.” The LLM will be offered to potential customers in need of AI capabilities, including global telco firms. It will support multiple languages, including English, Korean, German, Japanese, Arabic, and Spanish. Anthropic, founded in 2021, is known for its AI system, Claude, which enables corporations to manage tasks like searching, generating answers, automating workflows, coding, and processing text in natural conversations. The company recently released Claude Instant 1.2, an updated version that incorporates the strengths of Claude 2, its second-generation AI chatbot. SKT's CEO, Ryu Young-sang, sees great potential in the partnership, stating, “Combining our Korean language-based LLM with Anthropic’s strong AI capabilities, we expect to create synergy and gain leadership in the AI ecosystem with our global telco partners.” This collaboration marks a significant step in the advancement of AI in the telco industry. Stay tuned for more updates on this exciting venture! . . Subscribed to the VC Daily Digest to receive daily updates on startup funding, venture insights and AI Startups News. Link in the comment. . #ai #startups #venturecapital #funding #founder #news #startupnews

AI outpaces every industry with $17.9B raised in Q3 AI startups have significantly outstripped other tech industries in terms of funding during Q3, pulling in $17.9B during a time when overall startup deals are witnessing a downtrend globally. 🔑Key Points: AI companies registered a 27% increase in funding compared to the prior year, raising $17.9B during Q3—pretty noteworthy, given the 31% global drop in overall startup deals ($73B). Generative AI technology has been a particular point of attraction and has led investors to pour billions into leading businesses, whilst categories such as IT hardware, healthcare services, and consumer goods have all seen a sharp decline. Many venture capitalists have compared the current boom in AI to the introduction of the internet, labelling it the HTML moment for generative AI (I think we could come up with a better name). A recent Pew research report found that 56% of US adults had heard very little about ChatGPT—so, we’re still a while off mass adoption, and if you’re using AI daily, you’re still ahead of the curve. Why you should care: The rise of AI startups indicates a shift in technological investments and priorities, with many VCs and Angel investors optimizing for vectors with exponential growth curves. Financially, it seems like the smart move—If you’d invested in NVIDIA 5 years ago, you’d be up 678%. https://lnkd.in/ej3Ww8Y5

🌟 Despite the usual contempt of the EU contribution to #GenAI, there is more than you think. Here are a few highlights for #AI in Europe and Israel! While OpenAI grabs headlines, a new wave of AI startups is emerging, as revealed by Accel and Dealroom's report. Read more by Ingrid Lunden at - https://lnkd.in/eEWtVaKj - France leads the pack for Generative AI funding in Europe | TechCrunch 🚀 💰 Europe and Israel usually account for 45% of venture funding but lag in AI, meaning there’s huge growth potential. Investors are hunting for the next big thing at attractive valuations. 💡 Highlights: London leads with 27% of #GenAI startups. Tel Aviv at 13%, Berlin at 12%, and Amsterdam at 5%. Paris ranks mid-tier with 10%, but its startups are raking in the most cash, raising $2.29B to date. 🇫🇷 📈 Notable Parisian startups: Mistral AI: Raised $640M recently. H: Secured $220M in a seed round. Poolside: Moved from the U.S., raising big funds. Hugging Face: Raised $235M in 2023. Kyutai: Focused on open-source AI with hefty backing. ✨ Comparative funding: UK: $1.15B (e.g., Stability AI, Synthesia) Israel: $1.04B (e.g., AI21, Run) Germany: $636M (e.g., Aleph Alpha) 🏆 Key insights: Strong educational hubs and tech talent are crucial. 🏫 Big tech firms (MAAMA: Meta, Apple, Amazon, Microsoft, Alphabet) are major "founder factories," with 25% of GenAI startups founded by their alumni. 🌐 🌍 AI in Europe and Israel is on the rise, promising exciting growth and innovation ahead. 👋 Just as we are growing at knowdroids.ai, we can see the major new industry forming and exploding. Happy to be part of the rally. Please reach out at knowdroids.ai – Multiply the speed, efficiency and knowledge utilization of your organization with AI autonomous agents. or here to be part of the growing sector that is rapidly changing at least 30% of the jobs as we know them and leaving some individuals and companies behind. #AI #GenAI #Startups #Innovation #VentureCapital #TechTrends #Europe #Israel #Funding #BigTech

🚀 What Should You Build with AI? Insights from Y Combinator-Backed Startups AI is transforming industries, that is for sure. But where should you focus your efforts? Harshit Tyagi analyzed 400 AI startups backed by Y Combinator, here are some key takeaways: - Healthcare & Biotech: AI is revolutionizing diagnostics, drug discovery, and personalized medicine. Startups like PathAI and Atomwise are leading the charge. - Fintech: From fraud detection to personalized financial advice, AI is making finance smarter and more secure. Companies like Plaid and Brex are great examples. - Enterprise Solutions: AI-driven tools for business operations, customer service, and HR are in high demand. Look at startups like Scale AI and Gusto. - Consumer Applications: AI is enhancing user experiences in apps and services. Think of how Grammarly and Replika are changing the game. Focus on solving real-world problems with AI. The most successful startups are those that address specific pain points with innovative solutions. What AI-driven solution are you most excited about? Share your thoughts! 💬 #AI #Startups #Innovation #YCombinator #TechTrends #Healthcare #Fintech #Enterprise #ConsumerTech Source: https://lnkd.in/eseS4ejq

AI in 2024: New Chapter? 🤖 Interesting insights from Crunchbase 🧐 2023 was a banner year for AI startups, with a shocking $50 billion raised, led by big players like OpenAI and Anthropic. But as we step into 2024, momentum might be slowed down by a need to recalibrate and face regulatory challenges. 💡 Some insights: ⁕ The AI sector might follow the mobile revolution pattern, with established players dominating infrastructure and startups nurturing in the application layer. ⁕ Due to the resource-intensiveness of the sector, it remains to be seen whether Big Tech will leave room for AI startups. ⁕ Efficiency and open-source developments could lower barriers for new AI ventures while regulatory concerns may impede investments. Any VCs in the AI space out there? Share your thoughts! 💭 Will 2024 be the year Big Tech sidelines startups and regulation catches up? The full article here: #AI #AIinvestments #VentureCapital #TechTrends #PitchMeFirst

AI, AI, everything? Or, should it be a means to an end? The answer might be, "it depends." "But Scott Loong, partner at Panache Ventures, said this pivot is often unnecessary and unsuccessful. He spends much of his time figuring out if companies are AI-native or AI-enabled, and said it’s a distinction more founders need to consider. Building and running large language models are incredibly expensive endeavours, requiring specialized chips, large amounts of computing power, and highly skilled engineers. While creating a tailor-made AI solution from scratch might seem to offer a competitive advantage, Loong believes that for most startups, it’s simply not necessary. For most seed to Series A startups, off-the-shelf AI tools are sufficient to achieve their goals, and Loong said purchasing or licensing these solutions can be more practical and cost-effective than building them from the ground up." https://lnkd.in/dP4iHNMQ via BetaKit