Easy Money? AI Startups Rake in the Cash (Even Before ChatGPT)

Need a reality check on all the artificial intelligence news we’re being bombarded with in the wake of ChatGPT’s launch? You won’t find it here. The incredible numbers in this chart about investments in AI and machine learning operations cover numbers from 2015 to 2021, before Dall-E, MidJourney, ChatGPT, and Bard were household names for the nerd-set.

The research was put together by writerbuddy.ai—yes, another AI tool—using public data from sources like CrunchBase, NetBase Quid, S&P Capital IQ, and NFX. It found that the amount of money handed over to AI firms between 2015 to 2021 increased from $12.75 billion to $93.5 billion—up 633.33%. There was a big spike between 2020 and 2021, so imagine what the two years after that will look like when all the data becomes available.

Writerbuddy.ai says it looked at investments across 10,000 AI companies, but of course, the bulk of the cash goes to a select few. It’ll surprise no one that OpenAI, developers of Dall-E and ChatGPT, got the bulk of the cash with $11 billion. (Microsoft sunk $1 billion into OpenAI in 2019 and made another multi-billion investment earlier this year.)

Other names on the list include Anthropic, founded by some OpenAI alums, and Scale AI, which laid off 20% of its workforce in January—despite $602 million in funding.

The full infographic courtesy of writerbuddy.ai is below.

About Our Expert

Eric Griffith

Senior Editor, Features

My Experience

I've been writing about computers, the internet, and technology professionally since 1992, more than half of that time with PCMag. I arrived at the end of the print era of PC Magazine as a senior writer. I served for a time as managing editor of business coverage before settling back into the features team for the last decade and a half. I write features on all tech topics, plus I handle several special projects, including the Readers' Choice and Business Choice surveys and yearly coverage of the Best ISPs and Best Gaming ISPs, Best Products of the Year, and Best Brands (plus the Best Brands for Tech Support, Longevity, and Reliability).

I started in tech publishing right out of college, writing and editing stories about hardware and development tools. I migrated to software and hardware coverage for families, and I spent several years exclusively writing about the then-burgeoning technology called Wi-Fi. I was on the founding staff of several magazines, including Windows Sources, FamilyPC, and Access Internet Magazine. All of which are now defunct, and it's not my fault. I have freelanced for publications as diverse as Sony Style, Playboy.com, and Flux. I got my degree at Ithaca College in, of all things, television/radio. But I minored in writing so I'd have a future.

In my long-lost free time, I wrote some novels, a couple of which are not just on my hard drive: BETA TEST ("an unusually lighthearted apocalyptic tale," according to Publishers' Weekly) and a YA book called KALI: THE GHOSTING OF SEPULCHER BAY. Go get them on Kindle.

I work from my home in Ithaca, NY, and did it long before pandemics made it cool.

The Technology I Use

My first computer was a Laser 128, an Apple II-compatible clone with an integrated keyboard, matched with an eye-straining monochrome green monitor. I used it to type papers in college for other people for money...until I discovered the Mac SE in the college computer room. That changed my life. My first cellphone was a Samsung Uproar—the silver one with the built-in MP3 player from the Napster days (the pre-iPod era).

I use an iPhone 15 Pro hourly and an iPad Air infrequently (but I'm always in the market for a cheap Android tablet). I have a PlayStation 5 just to play Spider-Man, and several Windows machines, including a work-issued Lenovo ThinkPad. I talk to Alexa and Siri all day long. I do the majority of my computing on a 15-inch LG Gram laptop attached to a Thunderbolt hub to run a multi-monitor setup—I overdid it on the power needed to simply work from home.

I'm most at home in Microsoft Word after decades of writing there. More and more, I turn to services like Google Docs, using tools like Grammarly. I use Google's Chrome browser due to an addiction to several extensions I think I can't live without, but probably could. I use Excel extensively on data-intensive stories, but for chart creation, we've switched over entirely to using Infogram for interactive features that are hard to find elsewhere. I do a lot of graphics work for my stories, but limit myself to the free and amazing Paint.NET software to edit images.

I'm a firm evangelist for using the cloud for backup and syncing of files; I'm primarily using Dropbox, which has never failed me, but I also have redundant setups on Microsoft OneDrive, plus extra picture backups on Amazon Photos and iCloud. Why take chances? For entertainment, mine is a streaming-only household—my kid has never seen network TV and barely been exposed to commercials, thanks to Roku and Amazon Music. The house is peppered with smart speakers from Amazon for instant gratification and control of smart home devices like multiple Wyze cameras and Nest Protect smoke detectors. I've got accounts on all the major social networks, to my horror. I have a robot vacuum for each floor of the house. I want a 3D printer, but not sure what I'd use it for.

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