More than a quarter of venture dollars in 2023 went to artificial intelligence startups, according to data from Crunchbase.
“VCs created the problem,” Matt Higgins, Co-founder and CEO of RSE Ventures. “Now with AI — you have all these VCs that are chasing all these deals.”
Just last month, French startup Mistral AI raised $415 million dollars in a funding round valuing the company at $2 billion. Even more eye-popping is the disparity between this funding round and the $112 million seed round it raised only six months prior.
This is not to say that Mistral AI won’t be successful — it allows users to build their own AI chatbots — it just represents how the chase is on in a massive way.
“How is it possible to figure out in 2023 what’s gonna be commoditized or what’s gonna be absorbed by Microsoft as a feature or Meta,” Higgins said. “So I do think a lot of money is chasing and creating the same problem. Lots of people are gonna lose a ton of money. Will they ever learn? The answer is ‘no.'”
TAYLOR CRAIG MEDIA 