TLDR:
- AI media generation startups saw a dramatic 90% increase in VC funding in the first quarter of this year.
- Big tech giants are making content generation a priority in their AI initiatives.
According to a report from financial data firm PitchBook, AI visual media startups are raising record sums to bring AI-generated visuals to enterprise clients. The deal value for AI visual media, a subsegment of generative AI, increased nearly 90% in the first quarter to $402.7 million. This spike in funding is the highest quarterly total in recent years, with a significant increase in deal value noted in mid-2023 as well.
The report highlights the threat that big tech companies entering the AI media generation space pose to consumer-facing startups. While some startups have faced legal concerns, such as lawsuits from artists claiming their work was used without permission, others see the competition as a positive development. Yair Adato, CEO of Bria, an image generation startup, believes that increased awareness of AI media generation potential from companies like Apple benefits startups like his.
Ultimately, the article discusses the importance of startups in keeping the AI ecosystem open and accessible, arguing against a monopoly on AI models and technology by big tech companies. It emphasizes the need for innovation and diversity in the AI industry, providing a platform for women professionals in the IT, Media, and Advertising sectors.
