In a remarkably short time, generative AI (GenAI) has taken centre stage in a flourishing AI ecosystem. ChatGPT, a groundbreaking AI-powered language model, has played a pivotal role in catapulting GenAI into the spotlight, amassing 100 million users in a mere two months.
The uptake has driven a significant increase in generative AI investment.
This momentum was fueled by Microsoft’s $10 billion investment in OpenAI, leading to an exponential surge in startup funding for GenAI.
A closer examination of startup funding distribution reveals that 81% is allocated to model makers—companies responsible for creating the base models, such as OpenAI and DeepMind.
Within this competitive landscape, OpenAI boasts the highest valuation, closely followed by DeepMind, Anthropic, and StabilityAI. The two stand-out research labs are OpenAI (the makers of ChatGPT) and Google DeepMind, which has built some outstanding models such as AlphaGo and AlphaFold (listen to Azeem’s conversations with Sam Altman of OpenAI, and Demis Hassabis of DeepMind).
Outside these two, StabilityAI and Anthropic will have an important say in how base models are developed.