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TechCheck

TechCheck+ The Valuation Reckoning: When AI Startup Darlings Hit Stratospheric Levels 10/6/23

TechCheck

CNBC

Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.566 Ratings

🗓️ 6 October 2023

⏱️ 10 minutes

🧾️ Download transcript

Summary

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Transcript

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0:00.0

It has been a wild year for AI companies.

0:05.0

AI is what everyone is talking about in boardrooms and in living rooms

0:10.0

in the public market where AI darlings like

0:12.0

invidia have soared 200%.

0:14.4

Shares of Invidia hitting new all-time highs and its market cap topping a trillion dollars

0:19.4

for the first time ever.

0:20.8

But even more so in the private markets where one and every four dollars invested in a

0:26.4

startup is going to an AI-related company.

0:29.3

Yeah, it's been this buzzword that pushes every company forward. It's sending valuations for

0:33.8

those startups skyrocketing, tripling, or even quintupling in just a matter of

0:38.5

months. I've lived through a few bubbles. We like to describe these moments as super cycles, right? The internet,

0:45.8

mobile, cloud computing, and now AI. They're the start of these things that are going to be profoundly impactful in our lives,

0:56.2

but at those moments you can also have over-hype and over-price.

1:01.6

This week on Tech Check, the AI flush out which startups might finally face the

1:07.1

music.

1:08.1

Open AI is the startup behind ChatT

1:13.0

that has taken the technology landscape by storm.

1:15.9

It's now reportedly looking to sell shares

1:18.3

at a $90 billion valuation.

1:20.9

Of all the buzzy AI startups,

1:22.4

that might actually be the most worthy of its attention.

1:25.4

It was first on the scene founded in 2015 and arguably kick-started this year of

...

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