The Wall Street JournalThe Wall Street Journal

AI startups have tons of cash, but not enough data. That’s a problem

By Isabelle Bousquette

15 Jun 2023 · 3 min read

informed Summary

  1. Generative-AI startups have attracted large amounts of funding, but they need access to the right data to build powerful applications and maintain a competitive edge.

Generative-AI startups are rolling in billions of dollars of funding, but they could already be headed for failure if they can’t get the right data—and that won’t be an easy feat.

“We’ve seen lots of pitches from companies who may well be pursuing a brilliant application of AI, but they don’t have access to data that will give them the ability to build a powerful application, let alone proprietary data that will help them have competitive moats in their business,” said Brad Svrluga, co-founder and general partner of venture-capital firm Primary Venture Partners.

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