Sep 9, 2023 - Economy

Silicon Valley startups lean into AI boom

Illustration: Shoshana Gordon/Axios

Among the 229 in Y Combinator's latest batch of startups, 138 of them describe themselves as working in artificial intelligence, machine learning or some related category.

Why it matters: AI is the hottest technology right now, but the current boom has become equal parts innovation and marketing.

Zooming in: Among YC's AI startups, most seem to be focused on providing tools for developing, integrating and managing machine learning and other AI tech.

  • Also, a number of companies offer tools for specific industries or professions, like construction, health care and finance.
  • A few of them are also consumer-facing applications, such as video generation, and personal assistants.

Between the lines: Much like the rest of the current AI startup boom, a number of YC's startups are using existing tech and fashioning it for niche applications and tools.

  • While experts are predicting that much of these types of applications are experimental and eventually won't find find success as full-fledged businesses, some will — making this is a necessary part of the current market.
  • And selling picks and shovels has historically been good business.

1 fun thing: One startup, named Anneal, bills itself as a "TikTok killer with generative AI tools to create/share video content."

  • The collision of AI-generated content and social media is all but inevitable.
Go deeper