CB Insights

How can we win in the era of generative AI? It's the question looming larger than any other for countless companies around the globe. Big tech is scrambling to harness its potential. Corporate attention to the tech has skyrocketed. And many fear that failing to adapt will mean being outcompeted by the companies that do. So here's your ultimate guide to genAI disruption. 120+ page of data and analysis on where genAI is headed, big tech activity, the players to watch, and more: https://cbi.team/3LRoKIi

The idea of autonomous AI agents — LLM-powered bots that can independently reason and execute tasks — caught on like wildfire in 2023. Now, the space is seeing a proliferation of startups. More than 50 companies have emerged since 2022 focusing on agents, agentic workflows, and agent infrastructure. Investment has followed, with deals to companies in the space on track to nearly double last year’s total. We dive into what agents are, their limitations, key companies, and implications for the future of work in this free report: https://cbi.team/4dn4Pwg

#AI funding jumped 59% QoQ to the highest quarterly level on record in Q2'24. AI startups drew $23.2B in Q2’24, surpassing their previous quarterly record of $23B (Q2’21). For comparison, broader venture funding in Q2’24 was down 59% from its level in Q2’21. AI’s exceptional quarter was fueled by massive rounds to a handful of startups, including a $6B Series B to Elon Musk’s xAI. Discover the other deals fueling the AI boom in our State of AI Q2’24 Report: https://cbi.team/3LNAcV7

Green ammonia, or ammonia produced using renewable energy, could play a key role in industrial decarbonization efforts. Two emerging technologies in the space are grabbing investor attention: ▪️ Ammonia cracking — converts ammonia into hydrogen, making it usable as fuel in engines or fuel cells ▪️ Advanced alkaline electrolyzers — used in the production of green ammonia Corporate venture arms like Shell Ventures, Chevron Technology Ventures, and ENGIE New Ventures have all backed companies in the space. Big tech is also getting involved. Amazon’s The Climate Pledge fund invested in Sunfire’s Series E round to expand its electrolyzer production, as highlighted by CBI’s instant insights. We look at what’s driving momentum and the companies to watch in this brief: https://cbi.team/3LOXZ76

Large acquisitions have historically been key for big tech to bring in new revenue sources as well as launch new product lines. WhatsApp, acquired by Facebook in 2014, now has more than 2B users globally and is among Meta’s fastest-growing services in the US. But regulatory pressure has put a damper on this activity. Microsoft’s $69B acquisition of Activision, which finalized in October 2023, is a recent notable exception. It will bring $7.5B of revenue to Microsoft’s top line. Download big tech's investment & acquisition activity since 2015 here: https://cbi.team/4cSeqvb

Over the last 2 years, OpenAI has backed 20+ AI startups through its OpenAI Startup Fund, with support from Microsoft and other investors. As the company aims to justify its $80B valuation, its latest investments highlight key growth areas and strategic moves in the competitive generative AI market. We dig into where OpenAI has placed its bets so far across investments and acquisitions — and areas it could target next: https://cbi.team/3WIp3eD

With an increasing number of AI solutions to choose from, across every use case under the sun, it can be difficult to figure out what will actually work for your company. So we dug into the key signals and data you should look for when evaluating AI companies. Discover how to cut through the noise right here: https://cbi.team/4f1ynl4

There is markedly less early-stage activity in digital health in 2024. YTD, we’re at 51%. Historically, early-stage deals have been ~65% of deals. This trend has played out across all major geographies globally. Fewer seeds planted in a sector is not good over the medium- to long-term as well. Explore investment activity in our State of Digital Health Q2'24 Report: https://cbi.team/3zOSHWu

Massive rounds to AI companies were a key driver of funding growth in corporate venture capital in Q2'24. And while funding ticked up to $15.6B, the quarter saw a 12% drop in deal activity. Dig into 120+ pages of charts and data detailing the latest trends in CVC: https://cbi.team/4d1vor7

OpenAI just took aim at Google with its new SearchGPT. The feature, currently in preview, combines a web-browsing search interface with the AI models underpinning ChatGPT. It’s a long-anticipated move to capture more of consumers’ digital lives by becoming an AI-powered search engine. At the same time, OpenAI continues to woo enterprises — a massive potential revenue source — primarily via API integrations and robust developer tools. OpenAI is one of a handful of AI model developers — including competitor Anthropic, as well as big tech players like Google and Microsoft — targeting both the enterprise and the consumer. But focusing too much on one could alienate the other. Dig into where OpenAI is concentrating its efforts — and where it could be making itself vulnerable — here: https://cbi.team/4c8IaD8