- Despite skepticism and real-world dangers, artificial intelligence investments aren’t slowing down
- Artificial Intelligence is expected to become an integral part of most industries
- Tech giants are using nuclear power to manage electricity demand
Despite the wide range of potential applications of AI technology, concerns remain about its reliability, the legality of using models trained on copyrighted material without permission, and its environmental impact.
Faced with this situation, many investors believe that generating AI Will become an integral part of industries such as business analytics, creative services and automation.
Analysts predict that 60% of current skeptics will embrace generative artificial intelligence in the next few years, whether they know it or not, and investors will not slow down and continue to actively participate.
The rapid expansion of generative artificial intelligence
Investment in generative artificial intelligence startups remains strong, with venture capitalists investing $3.9 billion across 206 deals in the third quarter of 2024, according to new data from PitchBook hae. raised $2.9 billion, not including Open artificial intelligenceAn eye-catching $6.6 billion in financing.
Some standout funding rounds include Magic, a coding assistant startup, which raised $320 million in August, and Glean, an enterprise search firm, which raised $260 million in September.
Meanwhile, business analytics firm Hebbia raised $130 million in July. Additionally, investment extends beyond the U.S., with China’s Moonshot AI raising $300 million and Japan’s Sakana AI completing a $214 million round focused on scientific discovery.
Unfortunately, the rapid expansion of generative artificial intelligence also brings challenges, especially when it comes to energy consumption. according to Bain & CompanyCompanies deploying artificial intelligence at scale will require gigawatt-scale data centers that consume 20 times the power of today’s typical data centers. Such demand could put pressure on global power and labor markets.
Reliance on data centers has extended the life of coal-fired power plants, Morgan Stanley Warning if this trend continues, greenhouse gas emissions could triple by 2030.
In response, major data center operators like Microsoft, Amazonand Google yes Shift to nuclear energy to offset its impact on the environment. For example, Microsoft announced plans to source electricity from the controversial Three Mile Island nuclear facility, although such a project would likely take years to become operational.
Despite these environmental and technological barriers, investor interest in generative AI remains high. ElevenLabs, known for its viral voice cloning tool, is reportedly looking to raise funding at a $3 billion valuation. Black Forest Labs, the company behind the controversial image generator on the X platform, is also in talks for a $100 million funding round.
through TechCrunch