Runway and Cohere are the latest generative AI startups to join the billion-dollar valuation club. You can see what is happening in the market and where it is going.
The tech world is facing a funding drought, widespread layoffs, and investor demands for earnings above growth, but it doesn't affect generative AI.
The nascent market has already produced 13 unicorns. Five have joined the ranks this year, including Cohere and Runway last week.
These new companies take much less time to reach ratings over a billion dollars than most of their unicorn peers: among the 13 genAI unicorns, the average time to achieve unicorn status is 3,6 years, but for the unicorn club as a whole, the average is 7 years. Almost twice as long.
Meanwhile, the enthusiasm for generative AI has led to a wide chasm between the dizzying valuations of these companies and their modest revenues.
Below, we delve deeper into the generative cohort of AI unicorns using data on:
- Ratings
- Income and multiples of income
- Growth of the number of employees
- top unicorn investors
So far, 13 generative AI companies have reached a valuation of more than $XNUMX billion. The vast majority of these crossed the unicorn threshold in the last year or so when generative AI took off among users.
OpenAI, on the other hand, became a unicorn in 2019 and has seen its valuation grow 10 times since then. It leads the pack with a valuation of $29 billion. It is followed by Anthropic ($4.4B valuation), Cohere ($2B) and Hugging Face ($2B).
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