AI Startups Are Facing a Reckoning — The Information – The Information
Anthropic in Talks to Raise $2 Billion From Google and Others Just Days After Amazon InvestmentRead more
A reckoning may be coming for once-hot artificial intelligence startups. Among the most vulnerable: consumer apps (think Character.AI) and “thin wrapper” startups like CopyAI that merely provide a nice user interface on top of a third-party model from model developers like OpenAI.
We got a sense of the slowdown last week, when Natasha and I reported that Jasper, an early generative AI winner whose $125 million Series A round last October kicked off the AI funding frenzy, has cut its internal valuation by 20% and its 2023 annual recurring revenue projections by at least 30%. Our scoop came just two months after the AI copywriting startup slashed its headcount and pivoted from selling to consumers and businesses to just businesses.
