John,

Generative AI comprised less than 1% of total US venture capital (VC) funding of $238.3 billion in 2022, according to PitchBook and the National Venture Capital Association (NVCA).

But an estimated 450 startups and several new funds for generative AI indicate a hot market and high hopes for growth.

OpenAI is poised to drive generative AI growth in 2023. Microsoft, which partnered with OpenAI in 2019 in a blockbuster move, will reportedly invest another $10 billion, valuing OpenAI at $29 billion.