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AI Investments: How Entrepreneurs Are Becoming Billionaires

by Lisa Park - Tech Editor

Here’s a summary of the key data ​from the text,‍ focusing on‌ the rise of AI billionaires and potential risks:

* ‌ Explosive growth & Billionaire Creation: The AI sector saw massive investment (over $200 billion) last year, leading to a surge in new billionaires.
* key Companies & Valuations:

* Safe Superintelligence (founded by Ilya Sutskever): ⁤ Valued at $32 billion ⁢after⁣ an April investment round,‌ despite being only a year old.Rejected a takeover offer from⁤ Meta.
* Anthropic (Claude model): All seven founders became billionaires after a $3.5 billion investment (valuation $61.5 billion), which later‍ climbed to $183 billion.
* New Billionaires: Individuals behind companies like Perplexity, Mercor, Figure AI, Harvey, and Liang wen-feng (DeepSeek) also ⁢joined the billionaire ranks.
* AI as an Enabler: The article notes‍ that while a few companies create the core large language models, many​ other startups are benefiting and growing rapidly because ​ of these models. ⁤Examples given are Perplexity (AI-powered search) ​and Harvey (AI for legal software).
* ⁣ Bubble Concerns & Past Parallels: Ther’s a growing concern about a potential⁤ “bubble ‌burst.” The article draws a parallel to the railroad boom of the 1890s, where‍ overbuilding and unsustainable pricing led to financial​ panics. The‌ concern is ⁤that the economics may not support the ⁢number of AI companies‍ currently being funded,⁤ especially if they engage in price wars.

In essence, the article ⁤highlights the astonishing financial boom in the AI space, but also cautions that⁣ the current situation may not be sustainable​ and could be followed ⁤by a correction.

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