The AI hype train goes full-steam ahead

As attention shifts away from the absolutely ancient fad of crypto, AI startups are now taking centre stage.  

What happened: OpenAI, the company behind viral generative AI products like DALL-E 2 and ChatGPT, is reportedly in talks to raise funds at a US$29 billion evaluation, a move that  would make it the sixth-most valuable unicorn in the US after names like SpaceX and Stripe.  

Why it matters: Whether AI tech is ready for the limelight or not (critics note AI tech still has a long way to go) OpenAI's ascent to the uppermost tiers of Start-Up America would be the most definitive signal yet that investors and the market have crowned it the “next big thing.” 

What’s next: If the deal happens, it might be thanks to the press AI has garnered recently, with claims that it can revolutionize work and redefine search engines (just ask Microsoft).

Bottom line: For a company without a clear and quick path to profitability, $29 billion is a lofty valuation. CEO Sam Altman claims it could soon generate US$1 billion in annual revenue, but he also has said ChatGPT is still too limited to be used for important functions.