Generative AI Startups Are Burning White Hot
Plus: Two Coatue-backed AI startups feud over intellectual property.
Goodbye Web3. Hello, generative AI.
I touched on the frenzy in artificial intelligence last week with my scoop on artificial intelligence company Fireworks raising a Series A from Benchmark and Sequoia.
But things have only gotten zanier and more dramatic since then, so I’m returning to the topic.
This week, Sequoia Capital published a market map of some of the hottest startups in the generative AI space and Coatue dropped a white paper. The Information wrote about investors’ “FOMO” over artificial intelligence startups.
Investor Elad Gil published an essay Thursday arguing, “There is reason to believe while incumbents should capture a good amount of the value in this wave, startups will take a bigger share of AI generated value this time around.”
That new attention has woken up any investor who was still in their summer slumber.
Zavain Dar, the former Lux partner1 who is co-founding Dimension Capital, messaged with me about the sudden stampede into generative AI companies.