RESEARCH TRIANGLE PARK – The hype surrounding generative artificial intelligence is cooling with venture investors realizing “AL applications may not be ready for prime time,” reports venture news site PitchBook.
In a new report, PitchBook says deals in the third quarter fell by 29% (101) from the second quarter.
However, overall funding climbed thanks to $6.1 billion with $4 billion coming through Amazon’s huge infusion into Anthropic.
“Momentum is definitely waning as the market comes back to earth,” Bryan Offutt, a partner at Index Ventures, told PitchBook.
“We are living in the messy middle of AI,” Offutt said.