The AI hype bubble is beginning to reshape the landscape of venture capitalism, with about 13% of funding going to AI companies. Overall, however, VC funding in May was down 44% year-on-year. Her Yahoo Finance tech reporter Allie Garfinkle has more details.
video transcript
Sheena Smith: While the AI hype has increased investor interest in the technology, it hasn’t been enough to change the lull in global venture funding. Yahoo Finance’s girlfriend Allie Garfinkle explains these details. Ally, what are we looking at?
Ally Garfinkel: Hello Sheena. AI is getting a lot of attention, and that’s true in the public market as well. And that is true to some extent in the civilian market as well. Now what does that mean? Let’s take a look at May. In May, we saw several AI startups actually raise significant funding. Among them are startups such as Lightmatter and Anthropic, and he also has two new AI unicorns. One is a ChatGPT competitor called Cohere and the other is a generative AI video platform called Runway.
But those hyped AI investments actually accounted for only 13% of the funding. Well, the broader data it showed was actually pretty bleak. The global VC funding situation turned out to be $22 billion in May, which sounds like a lot, but is actually down 44% year-over-year. The key for Sheena, Akiko and me is that the macro funding environment remains very challenging. And to me, this speaks to the fact that no matter how much we talk about AI, no matter how much we hype it, it’s still pretty anomalous, not only in the realm of technology, but in the broader realm. increase.
Sheena Smith: Thank you Ally Garfinkle for explaining everything in context.
