One investor said that because of the huge amount of capital and computing resources required, recent leaps in generative AI were comparable to landing on the moon: a massively impressive technical achievement, only replicable by those with nation-state level wealth.
Enthusiasm for AI comes after many top investors, such as Sequoia Capital, have also been burnt after pouring cash into nascentThe value of deals struck by United States-based venture funds halved between the first and fourth quarters of last year, to US$41 billion from US$81 billion, according to PitchBook. Cryptocurrency deals plunged further, down more than 80 per cent over the same period.
That has led some to bide their time until they sense the arrival of a “killer app” with clear commercial potential.