Artificial Intelligence became mainstream in recent years.
Startups are disrupting industries that traditionally deem to be human-lead. For example, Jasper.ai creates hundreds of words of text given a short phrase as input. RunwayMl can take any text and generate new videos from scratch.
Traditional industries are not an exemption. Mainers are using AI to find natural resources, giants like Genentech are making big investments in AI drug discovery.
As AI models become bigger and more complex, a new category is emerging – foundation models, or companies that provide the core AI infrastructure that other companies can leverage. This implies that we may be on the cusp of «AI FAANG» genesis, the group of companies that control big models and license them out to businesses without AI expertise.
Broder AI adoption and seamless access to the technology promise exponential market growth. The size of the global AI market is USD 93.5B and is projected to expand at 38.1% CAGR from 2022 to 2030.
The biggest winners from this trend are AI hardware producers. It is estimated, that the compute required to train leading models is increasing by 275x every two years. NVIDIA has become a central hardware company in the AI category, with nearly all of the big AI models being trained and run on their GPUs. But the number of new entrants aim to take market share.
|Company||Notable investors||Raised to Date|
|SambaNova Systems||Softbank Investment Advisers, BlackRock, Intel Capital, Micron Ventures, Samsung Catalyst Fund, GV, Redline Capital Management||USD 1.14B|
|Cerebras Systems||Abu Dhabi Growth Fund, Scale-Up Venture Capital, Benchmark, 10X Capital, In-Q-Tel||USD 723.0M|
|Graphcore||Frontline One Capital, Fidelity International, Schroders, BMW i Ventures, Microsoft, Sequoia Capital, Dell Technologies Capital, Pitango Venture Capital, Samsung Catalyst Fund||USD 712.7M|
|Groq||Tiger Global Management, D1 Capital Partners, Firebolt Ventures, Alumni Ventures||USD362.6M|
|Tenstorrent||Epic CG, Fidelity Management, Real Ventures||USD 233.7M|
|Blaize||Franklin Templeton, GGV Capital, Mercedes-Benz Group, Samsung Catalyst Fund||USD 174.0M|
The growing adoption of AI applications and capital invested in model developers could ultimately end up benefiting AI hardware producers.