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AI investors need focus—but their exuberance isn't entirely unjustified [Yahoo! Finance]
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AI (GenAI). The investment landscape has also reflected this fervor, with GenAI attracting over $25 billion in funding in 2023 , mostly driven by mega-rounds for core infrastructure companies building the foundation models behind the apps that have captivated the public. While enthusiasm for the space still abounds, as evidenced by the continued growth in AI funding through early 2024 and the run-up in GenAI chip-maker NVIDIA's stock price , many are starting to wonder: Is this investment environment sustainable or will we see sequential declines in venture financing over the next few years? And if the VC financing environment slows down, will GenAI have a second act? Expectations are beginning to temper While big funding rounds for GenAI startups are still happening, we anticipate that as a whole, funding will decline in the next couple of years. Despite last year's great expectations, scaling GenAI in real-world business applications has proved challenging, and venture firms a
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