Standard knowledge round AI funding suggests synthetic intelligence must be crimson scorching proper now with {dollars} flying at startups constructing with AI, akin to what was occurring final yr with web3 and metaverse firms. Properly, guess what? In keeping with a brand new report from CB Insights, standard knowledge is mistaken — lifeless mistaken.

AI has been round for many years, however solely not too long ago have we seen a resurgence of curiosity within the sector with the discharge of OpenAI’s ChatGPT on the finish of final yr. Microsoft and Google quickly adopted with their very own clever, pure language chatbots.

Since then, cloud infrastructure firms have been making varied bulletins associated to offering the assets that firms want to be able to construct their very own massive language fashions. Enterprise firms like Salesforce, Field, ServiceNow, Zoho and plenty of others, in the meantime, have introduced generative AI merchandise.

With all these large firms concerned, it appears inevitable that startups associated to AI must be launching out of the woodwork with funding {dollars} not far behind. It seems to be the know-how everybody desires, one which’s smack dab in the course of a significant hype part for the time being.

So the place’s the funding?

In keeping with CB Insights Q1 2023 funding knowledge, the funding’s not there but. In reality it’s downright listless: AI startups altogether raised $5.4 billion within the first quarter, 66% lower than that they had a yr earlier. The variety of offers additionally fell 37% to 554. That’s not imagined to occur in a frothy market.