GenAI claims lion’s share of global AI startup funding

India has produced seven AI unicorns as of 2023, with a total enterprise valuation of $25.4 billion, according to the latest edition of the State of AI Report published by Air Street Capital.

The United States continued to rank first with 315 unicorns, followed by 70 in China and 27 in the UK.

ET captures a snapshot of the report covering research, industry and regulation across the global AI landscape:

• Worldwide, AI startups clocked a funding of $498 billion in H12023, 40% of which went into GenAI startups
• AI companies absorbed 70% of global private capital in 2023, up 55% from 2022
• Many of the most high-profile blockbuster fundraises weren’t led by traditional VC firms in 2023. 24% of all corporate VC investments went into AI

• Chat-GPT continued to be one of the fastest-growing internet products ever
• However... it suffered from low retention rates and daily active user count when compared to the likes of YouTube, WhatsApp, TikTok and others
• Open AI’s GPT-4 supersedes the capabilities of all other LLMs and even humans. It scored 90% in the Bar Exam as compared to 10% by GPT-3.5
• Even small language models, trained with specialised and curated data, can rival models which are 50X larger, says Microsoft
• Nvidia continued to dominate the GPU segment
• Nvidia chips are used 19x more in AI research than all alternate chips combined