The AI and Machine Learning (ML) craze is taking technology by storm, creating a gold rush. And like a traditional gold rush, pickaxes and shovels abound.
For large language models and other state-of-the-art AI models, tools come in the form of dedicated chips for more efficient computing. Chip maker Nvidia briefly hit a $1 trillion market cap due to interest in AI-focused graphics cards. Startups around the world are designing their own hardware optimized for AI and ML applications.
The market map below outlines the global AI and ML VC ecosystem and where the capital is going. Explore the AI and ML Semiconductors segment by clicking the blue tiles below.
If you want to know more, read on. Q4 2022 Artificial Intelligence and Machine Learning Report. PitchBook subscribers can also explore the full market map with details of over 7,000 companies.
Spotlight: AI and Machine Learning Semiconductors
PitchBook divides its AI and ML semiconductor segment into three sub-segments.
- Processor design: Large-scale language models used to train AI and chips specifically designed to process the output of these applications.
- Intelligent sensors and devices: They range from devices that collect data for AI processing, such as Internet of Things hardware and connected vehicles, to devices optimized for AI and ML to run and process data.
- Edge AI software: Applications that compress and deploy AI and ML algorithms across a wide variety of domains and environments.
Trends in trades and exits
According to PitchBook data, there were 1,405 AI and ML VC deals in Q4 2022, totaling $14.6 billion, up slightly from $14.5 billion in the previous quarter. The number of deals decreased by 4.9% quarter-on-quarter.
Notable deals include AI chip startup Moore Threads, which raised $213.2 million in venture funding, and Bolttech, an insurtech startup that uses AI to automate processes, raised $300 million in Series B funding. There is
In 2022, withdrawal activity has decreased. In 2021, there were 575 withdrawals worth $215.2 billion, compared to 432 withdrawals worth $42.4 billion. This equates to an annual drop in exit volumes of over 80% and an approximate 25% drop in the number of deals.
Self-driving system startup Almotive was acquired in December for an undisclosed amount by the automotive conglomerate that includes Fiat and Chrysler Sterantis. ECARX, an AI-centric chip startup, acquired COVA Acquisition for $300 million and went public in December.
Other market maps:
Featured image by IM Imagery/Shutterstock
