AI Fund II: Andrew Ng’s Next Big Move in the AI Community
Andrew Ng, renowned AI expert and founder of the Google Brain deep learning project, is making waves once again in the AI community. His startup incubator, the AI Fund, is planning to raise over $120 million for its second fund, AI Venture Fund II. This news comes after the success of the AI Fund’s first fund, which raised $175 million in 2018.
The filing with the SEC reveals that AI Venture Fund II has already secured $69.75 million from 13 partners, leaving around $50 million to be invested. Ng, who serves as the incubator’s GP and leads its direction, declined to comment on the matter. However, this significant funding indicates a strong interest in Ng’s vision for solving key problems using AI.
The AI Fund was established in 2018 with the goal of providing funding to small teams of experts at the seed and Series A stages of their companies. This approach allows the teams to work in stealth mode until they are ready to reveal their innovations. Additionally, the AI Fund connects these teams with Ng’s extensive professional network, enhancing their chances of success.
Initial backers of the AI Fund included prominent venture capital firms like Greylock Partners, New Enterprise Associates, Sequoia Capital, and SoftBank Group. Their support helped the AI Fund build an impressive portfolio of 38 companies, including Ng’s own Landing AI and other notable ventures like WhyLabs and Baseten, which focus on AI observability and app-building tools.
While AI Venture Fund II may be smaller than its predecessor at $120 million, it exceeded Ng’s original fundraising goal of $50 million. This achievement is all the more noteworthy considering recent data indicating a decline in generative AI dealmaking. PitchBook reported that generative AI deal value for pre-seed and seed-stage deals fell to $122.9 million in Q1 2024, down from its peak of $517.7 million in Q3 2023.
This decline in generative AI dealmaking could be attributed to enterprise reluctance. Recent surveys conducted by Boston Consulting Group revealed that C-suite executives are skeptical about the potential productivity gains of generative AI and express concerns about mistakes and data compromises. Implementing generative AI at scale has proven more challenging than initially assumed, leading executives to exercise caution.
In conclusion, Andrew Ng’s AI Fund is making waves in the AI community with the launch of AI Venture Fund II. Despite the decline in generative AI dealmaking, Ng’s expertise and network continue to attract significant funding. The success of the AI Fund’s first fund and the support from prominent venture capital firms demonstrate the confidence in Ng’s ability to solve key problems using AI. As the AI community eagerly awaits the outcome of AI Venture Fund II, it is clear that Ng’s influence and impact on the field will only continue to grow.