Artificial intelligence pioneers are backing a new $550 million fund dedicated to investing in AI startups.
Toronto-based Radical Ventures said it has received investments from several leaders in the AI space. This includes Fei-Fei Li, creator of the influential ImageNet project, Neural Networks pioneer Geoffrey Hinton, who is also a member of the Google Brain team, and the family office of former Google CEO Eric Schmidt. will be According to Radical, he has so far raised more than half of the $550 million goal.
Corporate investors such as Microsoft, SoftBank’s Vision Fund 2, IBM Ventures and Alphabet’s GV have been betting big on AI startups through their venture arm for several years.
But as an independent fund dedicated to AI and related innovations, Radical’s war chest will be the largest of its kind. The group launched a $350 million fund in 2019.
Radical’s fund was born amid a wave of interest from venture capitalists to startups after San Francisco-based OpenAI released ChatGPT, a question-and-answer tool, in November. Earlier this week, Microsoft invested his $10 billion in OpenAI at its $29 billion valuation.
Radical Ventures managing partner and co-founder Jordan Jacobs said: “A huge inbound flood occurred [interest in investing] From everyone you can imagine
Radical has already invested in OpenAI rival Cohere. Reka is a new startup founded by former engineers at DeepMind, owned by Alphabet. And You.com, an AI-powered search engine.
Dozens of generative AI startups raised early-stage funding in the final months of 2022, but investors backed off in the rest of the private tech market. PitchBook, which tracks VC activity, estimates he invested $1.4 billion in this category last year.
Other radical backers include Advance, the media group that owns Condé Nast and has made significant investments in Reddit and Warner Bros. Discovery. Singapore’s state-owned investment group Temasek. CPPIB, Canada’s largest pension fund.
Dominic Burton, former global managing partner of McKinsey and chairman of mining group Rio Tinto, joined Radical as both an advisor and an investor to help its portfolio companies build connections between large corporate customers. I am supporting.
Radical also hired DeepMind’s former head of strategy and operations, Aaron Rosenberg, to oversee a new London outpost to boost investment in Europe.
Radical will invest in companies building models that form the foundation of a wide range of AI applications, as well as more limited startups that may build on top of those models.
Jacobs said ChatGPT and image generation tools like Stable Diffusion and Midjourney are “the tip of the iceberg” when it comes to AI possibilities.
“In the next decade, AI will replace all software in the world,” Jacobs said. “Every business will end up using this [generative AI technology], either directly or through third-party software that incorporates it. ”