Generative AI startups’ value hits $48bn, up 6x from 2020

The generative AI 🤖 revolution is here 💥

Total value of generative AI startups hit $48bn, up 6x from 2020

Short 🧵 below on the Next Big Thing (1/23)

Cc:@Noahpinion @erikbryn @amcafee @balajis @Jason @DavidSacks @ylecun @Scobleizer @GerardAraud @gilliantett @bgurley @msuster

The generative AI revolution has been built on a foundation of academic and corporate research (2/23)

Large AI models like ChatGPT require an extraordinary amount of computing power to train on (3/23)

Given the extraordinary costs of training large language models and other generative AI systems, industry has surpassed academia as the developer and deployer of the largest AI systems (4/23)

Big Tech companies like @Google, @Microsoft, @Meta and @amazon are also among the leading publishers of academic research on AI (5/23)

The main semiconductor company benefiting from the AI boom is Nvidia.

✅ Nvidia makes 80% of all AI chips
✅ ChatGPT requires an estimated 10,000 Nvidia chips to run (6/23)

Cc: @djrosent @gilbert @crmiller1

OpenAI is the leader of the generative AI pack 🐺

By some measures it may also be the fastest growing startup of all time (7/23)

Generative AI systems like Copilot are already generating massive productivity gains for software engineers (8/23)

Generative AI has started to eat the law firm:

➡️ Allen & Overy introducing an AI chatbot to help its lawyers draft contracts

➡️ tool built using GPT tech created by OpenAI

➡️ start-up behind tool raised $5m led by the OpenAI Startup Fund (9/23)

Venture capital loves generative AI (10/23)

Investors are betting that AI will revolutionize drug discovery.

Funding for AI-led drug discovery has risen 3,800% in the past five years to $2bn (11/23)

AI was leveraged by biotechs and big pharma to develop and optimize vaccines and therapeutics during the COVID crisis (12/23)

More data on the generative AI mega boom 💥

✅ There are now at least 539 generative-AI startups

✅ Not counting OpenAI, they have so far collectively raised more than $11bn

✅ OpenAI has raised over $11bn (13/23)

The Economist published a graphic showing the types of generative AI companies that have received at least $22 billion in venture capital (14/23)

Corporate America can’t stop talking about AI 🤖 (15/23)

Corporate America is pouring tens of billions into AI (16/23)

In terms of the geography of AI innovation, it’s a two horse race between the US 🇺🇸 and China 🇨🇳

Europe 🇪🇺 barely features (17/23)

Academic publishing in AI is also dominated by China 🇨🇳 and the US 🇺🇸 (18/23)

Very interesting analysis by @chamath on investment dynamics of the generative AI boom (19/23)

For a deeper dive on the generative AI boom, see this fascinating discussion between Marc Andreessen (@pmarca), @sriramk, @stevesi and @aarthir (20/23)

Also check out OpenAI Founder Sam Altman (@sama) talking to @reidhoffman about:

🗣️ ChatGPT

🗣️ The future if generative AI and large language models

🗣️ Massive opportunities and existential risks related to AI (21/23)

To read more about the generative AI mega-boom, see this informative story in Nikkei Asia (22/23)

Originally tweeted by Science Is Strategic (@scienceisstrat1) on March 4, 2023.

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