August 1, 2024

License to skill

Hi there, 

Here is this week's Hot or Not.

Hot: AI agents

The idea of autonomous AI agents — LLM-powered bots that can independently reason and execute tasks — caught on like wildfire in 2023.

Now, the space is seeing a proliferation of startups.

More than 50 companies have emerged since 2022 focusing on agents, agentic workflows, and agent infrastructure.

Investment has followed, with deals to companies in the space on track to nearly double last year’s total. 

We dive into what agents are, their limitations, key companies, and implications for the future of work in this free report.

Not: AI payoff

As big tech companies spend billions on servers, data centers, and other infrastructure, investors are getting antsy looking for ROI. 

Microsoft stock dropped this week after narrowly missing cloud revenue expectations. 

Alphabet, despite meeting earnings expectations, saw its stock dip 5% on Wednesday last week on high capex spend in Q2 — $13B, up over 90% compared to 2023. 

In response to questions from analysts, CEO Sundar Pichai said:

“When you go through a curve like this, the risk of underinvesting is dramatically greater than the risk of overinvesting..."

Big tech is full steam ahead on AI. 

For more on enterprise AI development and the ROI question, check out this report.  

Hot: In-Q-Tel in biotech

In-Q-Tel invests in tech relevant to national security and defense — and one of its key priorities is biotech.

Within this space, it’s focusing on some pretty trippy tools. 

For example, it has invested multiple times in Colossal — a startup that aims to bring to life versions of extinct species, like the woolly mammoth.

Now, why would an investor like IQT be interested in these long-lost creatures?

Well, we can’t say for certain, but it’s likely less focused on woolly mammoths and more interested in the broader implications of de-extinction tech for areas like healthcare, conservation, and food security.

Download the full IQT investment map here. CBI customers can dive deeper into each area by logging in here.

Not: CVC activity in China

Corporate venture capital (CVC) activity is evaporating in China.

China-based startups drew just 59 deals backed by CVCs in Q2’24, marking a 24% drop QoQ and the lowest level since 2015.

The decline comes as China’s tech market faces a myriad of challenges, including:

• Macroeconomic concerns
• Escalating geopolitical tensions
• Strict regulatory environment

Dive into CVC activity in China and beyond in our State of CVC Q2’24 Report.

I love you.

Anand 

@asanwal 

P.S. The AI development landscape is evolving quickly — and we’re ready to help you keep up. Explore the future of the space with our analyst here.

Get started with CB Insights

CB Insights' emerging technology insights platform provides all the

analysis and data from this newsletter. Our data is the easiest way to discover and respond to emerging tech. 

Was this email forwarded to you? Sign up here