TLDR:
- AI start-ups in India have attracted $55 million in funding within the first two months of 2024.
- Investors are scrambling to invest in AI ventures due to fear of missing out (FOMO) on the next big winner.
Investors are showing increasing interest in AI start-ups in India, with funding reaching $55 million within the first two months of 2024. This surge in funding comes at a time when investors are tightening purse strings and increasing scrutiny on other start-ups in India. The fear of missing out (FOMO) on the next big winner in the AI space is believed to be driving this increased investment. Venture capitalists are eager to find the next OpenAI, which pushed generative AI technology to the forefront. However, there are concerns about valuations in the AI sector, as some companies may be receiving high valuations without creating significant value. Despite these concerns, experts predict that AI funding will continue to increase in the near future. However, they also expect that the funding momentum will eventually plateau as the market becomes saturated.
