Link to original article: AI startups still snag huge valuations despite lack of revenue
AI startups are grabbing valuations in the hundreds of millions, despite having hardly any revenues to speak of. Investors say it is too early to expect meaningful revenues from generative AI startups, and they are willing to pay high prices for future potential.
Since 2022, 74 AI companies closed rounds with post-valuations of $100 million or more. Tomasz Tunguz, founder of Theory Ventures, estimates that 95% of these companies are making less than $5 million in annual recurring revenue.