{"id":21077,"date":"2025-01-29T09:03:17","date_gmt":"2025-01-29T10:03:17","guid":{"rendered":"http:\/\/medexperts.pro\/?p=21077"},"modified":"2025-01-29T10:30:27","modified_gmt":"2025-01-29T10:30:27","slug":"after-deepseek-venture-capital-investors-face-questions-about-their-a-i-bets","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=21077","title":{"rendered":"After DeepSeek, Venture Capital Investors Face Questions About Their A.I. Bets"},"content":{"rendered":"
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Venture capitalists plowed money into A.I. start-ups like OpenAI and Anthropic. But the rise of the Chinese A.I. start-up DeepSeek has called that funding frenzy into question.<\/p>\n

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Jordan Jacobs, an investor at the venture capital firm Radical Ventures, has spent the last few days fielding half a dozen calls from his firm\u2019s investors. All of them wanted to know about DeepSeek<\/a>, a Chinese artificial intelligence app<\/a> that topped the app stores over the weekend. <\/p>\n

DeepSeek had created a powerful A.I. model with far less money than most A.I. experts thought possible, upending many assumptions underlying the development of the fast-evolving technology. To calm the panic, Mr. Jacobs said he explained to his investors that Radical Ventures had long invested in more efficient A.I. models, similar to the one made by DeepSeek.<\/p>\n

\u201cLet\u2019s focus on the companies who are actually building real businesses, rather than the ones that are chasing science fiction,\u201d Mr. Jacobs said he told them.<\/p>\n

Nvidia<\/a>, Google, Meta and other giant tech companies have faced a barrage of questions about DeepSeek since last week as the Chinese start-up<\/a> toppled longstanding notions about A.I. But its repercussions are being felt beyond the largest firms, reaching into the venture capital industry that has bet big on the technology by plowing billions of dollars into A.I. start-ups.<\/p>\n<\/div>\n<\/div>\n

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For two years, venture capital firms have been engaged in a funding frenzy<\/a>, pouring more than $155 billion into A.I. start-ups between 2023 and 2024, according to PitchBook, which tracks start-ups. Two of those A.I. companies \u2014 OpenAI and Anthropic \u2014 have raised $24 billion and $16 billion with the goal of building A.I. that is as intelligent as humans. OpenAI\u2019s valuation has hit $157 billion \u2014 more than Pfizer or Citigroup \u2014 while Anthropic\u2019s valuation has reached $20 billion.<\/p>\n

What DeepSeek did has now called that funding fever into question. If a Chinese upstart can create an app as powerful as OpenAI\u2019s ChatGPT or Anthropic\u2019s Claude chatbot<\/a> with barely any money, why did those companies need to raise so much cash? <\/p>\n

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Venture capitalists plowed money into A.I. start-ups like OpenAI and Anthropic. But the rise of the Chinese A.I. start-up DeepSeek has called that funding frenzy into question.Jordan Jacobs, an investor at the venture capital firm Radical Ventures, has spent the last few days fielding half a dozen calls from his firm\u2019s investors. All of them wanted to know about DeepSeek, a Chinese artificial intelligence app that topped the app stores over the weekend. DeepSeek had created a powerful A.I. model with far less money than most A.I. experts thought possible, upending many assumptions underlying the development of the fast-evolving technology. To calm the panic, Mr. Jacobs said he explained to his investors that Radical Ventures had long invested in more efficient A.I. models, similar to the one made by DeepSeek.\u201cLet\u2019s focus on the companies who are actually building real businesses, rather than the ones that are chasing science fiction,\u201d Mr. Jacobs said he told them.Nvidia, Google, Meta and other giant tech companies have faced a barrage of questions about DeepSeek since last week as the Chinese start-up toppled longstanding notions about A.I. But its repercussions are being felt beyond the largest firms, reaching into the venture capital industry that has bet big on the technology by plowing billions of dollars into A.I. start-ups.For two years, venture capital firms have been engaged in a funding frenzy, pouring more than $155 billion into A.I. start-ups between 2023 and 2024, according to PitchBook, which tracks start-ups. Two of those A.I. companies \u2014 OpenAI and Anthropic \u2014 have raised $24 billion and $16 billion with the goal of building A.I. that is as intelligent as humans. OpenAI\u2019s valuation has hit $157 billion \u2014 more than Pfizer or Citigroup \u2014 while Anthropic\u2019s valuation has reached $20 billion.What DeepSeek did has now called that funding fever into question. If a Chinese upstart can create an app as powerful as OpenAI\u2019s ChatGPT or Anthropic\u2019s Claude chatbot with barely any money, why did those companies need to raise so much cash? We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and\u00a0log into\u00a0your Times account, or\u00a0subscribe\u00a0for all of The Times.Thank you for your patience while we verify access.Already a subscriber?\u00a0Log in.Want all of The Times?\u00a0Subscribe.<\/p>\n","protected":false},"author":1,"featured_media":21079,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-21077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/21077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21077"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/21077\/revisions"}],"predecessor-version":[{"id":21080,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/21077\/revisions\/21080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/21079"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}