An anonymous reader shared the following report from The Washington Post.
A year ago, the atmosphere in Silicon Valley was bleak. Big tech stocks were tumbling, the crypto bubble was bursting, and a wave of job cuts was beginning to hit the industry.
Then came the artificial intelligence boom.
Venture capitalists have been pouring money into AI startups since then, investing more than $11 billion in May alone, an 86% increase from the same month last year, according to data firm Pitchbook. Companies from Moderna to Heinz have alluded to his AI efforts in recent earnings calls… AI is one of the only areas still hiring here, and companies We pay huge salaries for our expertise. Workers here are being retrained to specialize in this area…
Tech stocks surged across the board in a return to whiplash growth after analysts declared a decade-long bull market finally over. In 2022, the Nasdaq 100, the stock market index dominated by the biggest tech companies, will drop 33%, losing an entire third of its value after a massive loss of wealth accumulated over the past decade. bottom. So far in 2023, the Nasdaq 100 is already up 31%… The startup ecosystem is also returning to optimism, at least for companies focused on AI…
“Venture capital firms are racing for access to hot AI deals while avoiding unprofitable traditional software companies,” said Pitchbook analyst Brendan Burke. “AI startups are experiencing a founder-friendly landscape that is unmatched by other technology ecosystems.” So far this year, approximately $12.5 billion has been invested in generative AI startups, according to Burke. is taking place, but only $4.5 billion was invested in the sector in 2022 as a whole.
Calling NVIDIA an “AI chip maker,” the article notes that NVIDIA was valued at $971.4 billion in the stock market on Friday, “within the range of Amazon’s $1.26 trillion valuation.”
NVIDIA is now “one of the few companies in the world worth $1 trillion.”
