‘Mega-deals’ could be inflating overall AI funding figures

It’s safe to say that VCs struck while the iron was hot this year where it concerned generative AI.
While venture capital investments overall fell compared to last year thanks to macroeconomic challenges and other related factors, startups in the generative AI space — and AI more broadly — did quite well.
Funding for AI-related startups surpassed $68.7 billion in 2023, according to PitchBook, with generative AI vendors like OpenAI, Stability AI and Anthropic accounting for a substantial portion of that figure. And it appears that the sector will likely close the year with substantially higher investments than the past couple of years.