

is at their core versus those that use A.I. We think that this really reflects the magnitude of the potential opportunities for A.I.-native companies and new categories, specifically,” she says, referring to companies where A.I. is expensive, “it’s also getting cheaper, and it is getting more and more accessible. I recently wrote about how valuations are soaring, while startups like OpenAI are reportedly burning lots of cash training their models. In general, it’s pricey to invest in A.I. “We expect that over the next many years, you’re going to see totally new industries emerge and transform based on A.I.-and so there’s a whole lot of good reason for all the attention that it’s getting,” she later added. is and will affect virtually every sector the firm is investing in is exciting, and also cited things like model performance improvements and falling costs as reasons for Bessemer’s timing. The reasoning, and the message, is simple: “A.I. (Bessemer doesn’t have a target of how many startups they want to invest in, she says.) She added that their fund structure gives them the flexibility to invest “even beyond a billion dollars in this area,” adding that LPs are excited. The $1 billion is not a new fund, but a commitment from current capital, which they will invest across stages, Goldberg said.

As a result, the firm has decided to go big: Bessemer is directing $1 billion of its deployable capital to invest in A.I., the firm told me-a hefty sum that Goldberg says is Bessemer putting out a signal to founders that they’re serious about A.I., they have cash for it, and they’re ready to spend it.
