Generative AI Drives Productivity Gains and Infrastructure Growth, Spawning New Startups

Generative AI is increasing enterprise and industry productivity, with 8 companies now focused on general productivity compared to 4 last year.

Blurring lines between consumer and prosumer apps like ChatGPT, with creative software companies doubling from 3 to 6.

Emergence of new industrial AI category integrating software and hardware, with companies like Figure, Tractian and Waabi.

Strong year for infrastructure like vector databases and inference providers, with new entrants like Mistral, Pinecone and Databricks.

Future companies will be smaller but more numerous, enabled by code and software agent generation, with different needs around knowledge and content.