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WSJ: Corporate Investors Cut Bigger Checks for AI Startups


Corporate venture-capital investors are writing bigger checks to fast-track the growth of artificial-intelligence startups, prompted by demand from businesses for ChatGPT-like generative AI tools, investors and analysts said.

The median amount of capital corporate VCs contributed to funding deals for AI startups globally over the first quarter was $23.3 million, up roughly 37% from the median amount of $17 million in full-year 2022, according to market research firm CB Insights. Corporate investors contributed to about 19% of total funding deals for AI startups in the first quarter, roughly the same share as previous quarters, the firm said.

David Blumberg, founder and managing partner of business-software investor Blumberg Capital, said most companies outside of the tech sector aren’t equipped to develop their own AI technology. Instead of funding internal tools, he said, many of these companies focus on building long-term relationships with AI startups through early-stage funding deals. In some cases, that can lead to an acquisition down the road to fill a technology gap.  

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