The Wall Street JournalThe Wall Street Journal

ChatGPT fever has investors pouring billions into AI startups, no business plan required

By Deepa Seetharaman and Berber Jin

08 May 2023 · 5 min read

Editor's Note

Investors are pouring funds into AI startups, hoping to cash in on the latest boom. However, it is still unclear how many of these companies will be able to make a profit, reports The WSJ.

Before their startup had customers, a business plan or even a formal name, former Google AI researchers Niki Parmar and Ashish Vaswani were fielding interest from investors eager to back the next big thing in artificial intelligence.

At Google, Ms. Parmar and Mr. Vaswani were among the co-authors of a seminal 2017 paper that helped pave the way for the boom in so-called generative AI. Earlier this year, only weeks after striking out on their own, they raised funds that valued their fledgling company—now called Essential AI—at around $50 million, people familiar with the company said.

Sign in to informed

  • Curated articles from premium publishers, ad-free
  • Concise Daily Briefs with quick-read summaries
  • Read, listen, save for later, or enjoy offline
  • Enjoy personalized content

By continuing, you agree to our Terms of Service and Privacy Policy.