""While funding rounds have gotten slightly harder to raise, the capital for each round has increased. So fewer bets, but more capital. AI startups are raising bigger rounds not because they have lots of employees - they don't - but because the cost of running AI models is high.""
""OpenAI and Anthropic accounted for a heavy chunk of the $189 billion in global venture capital raised last month, and, alongside xAI, have teased IPOs for later this year that have left investors foaming at the mouth.""
AI startups captured 41% of the $128 billion in venture capital raised last year, with major players like OpenAI and Anthropic leading the charge. These companies raised substantial amounts, including OpenAI's $110 billion round and Anthropic's $30 billion Series G. The venture market is now K-shaped, with capital concentrated in a few firms. Despite slightly harder funding rounds, the capital per round has increased due to high operational costs of AI models. Recent funds have shown the highest internal rate of return since 2022, signaling positive trends for investors.
Read at TechCrunch
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