Investors Betting on AI and Machine Learning with Chips: A Market Map

Investors are placing their bets on the chips powering artificial intelligence (AI) and machine learning applications, according to a recent report by data provider PitchBook. The report reveals that in the fourth quarter of 2022, 1,405 AI and ML vc deals worth $14.6 billion were reported, with deal value increasing slightly over the previous quarter from $14.5 billion. Despite deal count declining 4.9% from the previous quarter, startups around the world are designing their own hardware that is optimised for AI and machine learning applications. The report also indicated exit activity declined in 2022, with a decline of almost 25% in deal count. However, notable deals included insurtech firm Bolttech, which raised $300 million series B, and AI chip startup Moore Threads, which raised $213.2 million in venture funding. Overall, the growth of the AI and ML industry suggests that specialized chips will be in high demand as more firms seek to boost their computing operations.