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Recent research from Stanford’s Institute for Human-Centered Artificial Intelligence (HAI) reveals a slowdown in AI investment, signaling a shift in the industry. Despite overall decreases, certain segments like generative AI continue to attract substantial funding, showcasing targeted interest in specific AI applications.
The decline in AI investment can be attributed to factors such as market saturation and the high costs associated with building large AI models. Investors are now favoring established companies over newcomers, leading to a more selective investment landscape. However, the industry remains optimistic about the potential of AI to drive innovation and efficiency across various sectors.
While the market undergoes a period of adjustment, transitioning to a more sustainable funding approach, the future of AI remains promising. This shift is crucial for developing AI solutions that are effective and impactful in real-world scenarios, driving industry transformation.
Before we delve into other startup news of the week, don’t forget to submit your pitch deck for review in my Pitch Deck Teardown series.
Most interesting startup stories from the week
The Humane Ai Pin. Image Credits: Brian Heater / TechCrunch
One notable story this week is the launch of Airchat, a social media platform aiming to revolutionize online interactions through audio posts. With an invite-only model, Airchat provides a unique experience for users to engage with each other in an audio-centric environment.
- Noname Security: Noname Security’s valuation has been adjusted to $500 million following a deal with Akamai Technologies, marking a shift in the cybersecurity startup’s trajectory.
- Humane Ai Pin: Humane introduces a $699 wearable device, the Ai Pin, designed to offer innovative functionalities in the tech market.
- AI Agents by Betaworks: Betaworks introduces AI agents to automate mundane tasks, presenting a new approach to AI utilization.
Most interesting fundraises this week
Image Credits: Ramp / Ramp co-founders Karim Atiyeh, Eric Glyman and Gene Lee
Rippling secures $200 million in fresh funds, further solidifying its position in the HR tech market. The funding round also allows existing shareholders to benefit from a cash-out opportunity, reflecting Rippling’s impressive growth in recent years.
- Ramp: Ramp raises an additional $150 million to support its spend management solutions, increasing its valuation to $7.7 billion.
- Two Chairs: Two Chairs transitions to digital therapy services following a $72 million funding round, expanding its online presence in the mental health space.
- Rivos: Rivos secures $250 million in funding post-lawsuit settlement with Apple, demonstrating resilience and innovation in the chip market.
Other unmissable TechCrunch stories …
Here are some additional TechCrunch stories that caught our attention this week:
- Apple’s Security Alerts: Apple notifies users across 92 countries about potential security breaches, highlighting the importance of cybersecurity vigilance.
- Tesla Layoffs: Tesla announces workforce reductions amid ongoing market challenges and a shifting EV landscape, emphasizing the need for strategic restructuring.
- Boston Dynamics Update: Boston Dynamics discusses its humanoid robotics strategy, signaling a shift towards electric models for commercial applications.
- Twitter’s User Verification: Elon Musk introduces a paid user verification feature on Twitter to combat bots and enhance platform authenticity.
- Hugging Face’s AI in Healthcare: Hugging Face introduces the Open Medical LLM benchmark for AI in healthcare, aiming to enhance generative AI applications in medical settings.
