Generative AI startups get 40% of all VC investment in cloud amid ChatGPT buzz [MSNBC.com]
MongoDB, Inc. - Class A (MDB)
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Source: MSNBC.com
Style-photography | Istock | Getty ImagesGenerative artificial intelligence startups are getting 40% of all the venture capital funding that flows into cloud companies, according to venture investors Accel.In its latest annualEuroscape reportVenture funding into the cloud industry climbed 27% annually — marking the first year of growth in three years. Cloud startups raised $62.5 billion in Europe, Israel and the U.S. in 2023, the report found.Funding is up 65% from the $47.9 billion cloud firms raised four years ago, according to Accel.It comes after OpenAI, the Microsoft-backed company behind the buzzy generative AI chatbot ChatGPT, earlier this monthraised $6.6 billion in a mammoth funding roundMuch of the growth of funding in cloud is being driven by excitement around AI."AI is sucking the air out of the room" when it comes to cloud, Philippe Botteri, partner at Accel, told CNBC in an interview this week. "This is both visible on the public market and and the private market."As of
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