In a report by venture capital firm Accel, it is highlighted that Generative Artificial Intelligence (GenAI) companies have become the primary catalyst for the emergence of unicorn startups, constituting 60% of new unicorns.
The report also reveals that funding for GenAI startups in Europe and Israel reached nearly $1 billion in the past year, in contrast to the over $14 billion in the United States, although this figure is influenced significantly by a $10 billion investment in OpenAI.
“A significantly small group of companies have garnered a disproportionate share of the funding… the investment in the fundamental models is expected to decrease,” commented Philippe Botteri, a partner at Accel, during an interview.
AI foundational models, which are created by entities like Microsoft-backed OpenAI and Meta, possess the ability to generate text, images, or various media formats in response to specific requests.
The report indicates that Europe, where AI startups like Synthesia and Stability AI are thriving, is already generating 50% more AI-related publications than the United States while maintaining a comparable citation rate.