Sky-high valuations across AI

It’s been a tough year for tech startups. In the midst of down rounds and deep layoffs, tech CEOs and VCs have been careful to emphasize profitability and strong financials above all else. Except, that is, for startups having anything to do with generative AI.

Last week, we reported that Tome, a startup that uses artificial intelligence to make it easier to create and design presentations, has talked with investors about raising new money at a valuation of up to $600 million. The new financing comes while the nearly three-year-old company has generated barely any revenue.

And just this afternoon, we reported that Databricks, an enterprise software firm that showed a $380 million operating loss in its most recent fiscal year, is in early discussions with investors for a new cash infusion. The fundraising would likely total hundreds of millions of dollars, and is aimed at capitalizing on the fervor over artificial intelligence. This comes after Databricks acquired a young artificial intelligence startup, MosaicML, in a $1.3 billion all-stock deal announced in June.

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