(Reuters) – Sapphire Ventures, a leading venture capital firm, has announced plans to invest over $1 billion in AI enterprise startups. The company is doubling down on the technology’s adoption by companies around the world, according to its president Jai Das. Das made the announcement at the Reuters MOMENTUM conference in Austin on Tuesday, highlighting the significant opportunities AI presents.
The $1 billion investment will be drawn from Sapphire’s existing funds, which currently manage $10 billion. Additionally, the firm has approximately $3 billion waiting to be deployed. The majority of this capital will be directly invested in AI startups, with a portion going towards early-stage AI-focused venture funds through its limited partner fund.
In discussing the investment, Jai Das emphasized the game-changing nature of AI, stating, “AI is really game-changing because it’s impacting the way new software is going to be built.” He further emphasized that this investment is more than just financial, as Sapphire Ventures aims to build the necessary infrastructure to support the success of AI companies.
The surge in AI investment comes in the wake of OpenAI’s ChatGPT, a generative AI technology that has captured the attention of venture capitalists and major tech companies. According to PitchBook data, over $40 billion has been invested in AI startups over the past six months, making up nearly a quarter of overall startup funding.
Amidst this investment frenzy, global enterprises are actively seeking ways to adopt AI technology to enhance internal efficiency and improve products. However, concerns about data privacy and safety remain top of mind for these companies.
Sapphire Ventures, headquartered in Austin, Texas, has already invested in several AI-powered enterprise startups, including Clari and DataRobot. The firm focuses on backing companies that make AI easily accessible by leveraging available data to predict outcomes more accurately.
“I think people who get the data first are probably going to be the winners of this generative AI wave,” stated Jai Das during the conference. He believes that access to proprietary data could give a company a competitive edge in the rapidly evolving AI landscape.
As the demand for AI continues to grow, Sapphire Ventures’ substantial investment underscores its commitment to driving innovation and supporting the AI ecosystem. With its significant financial resources and strategic approach, Sapphire Ventures is poised to play a crucial role in shaping the future of AI enterprise startups.
(Reporting by Krystal Hu in Austin; editing by David Evans and Deepa Babington)
Credit: The Star : Tech Feed
