AI Pioneer Andrew Ng Seeks $120M for New Venture Fund
AI expert Andrew Ng plans to raise $120 million for his second AI Fund, a startup incubator supporting teams that solve key problems using AI. The AI Venture Fund II has already secured $69.75 million from 13 partners, aiming for an additional $50 million. Ng’s first AI Fund, launched in 2018 with $175 million, backed companies like WhyLabs and Landing AI. Despite the current cooling in the generative AI market, as evidenced by a 76% drop in early-stage investments since Q3 2023, Ng’s new fund demonstrates continued confidence in AI’s potential.
Elaboration: Andrew Ng, a prominent figure in the AI community and a co-founder of Coursera, is raising $120 million for his AI Fund’s second tranche, named AI Venture Fund II. According to a recent SEC filing, the fund has already raised $69.75 million from 13 partners, with approximately $50 million remaining to reach the target. Ng, known for his work with Google Brain and Baidu, launched the AI Fund in 2018 with $175 million to support early-stage AI startups through seed and series A funding. The fund’s notable backers include Greylock Partners, New Enterprise Associates, Sequoia Capital, and SoftBank Group.
AI Venture Fund II will be smaller than the initial AI Fund but still substantial, especially given the recent downturn in generative AI investments. Pitchbook data reveals a significant decline in early-stage generative AI dealmaking, which peaked in Q3 2023 and has since dropped 76%. This decrease reflects broader market sentiments, with surveys indicating that many C-suite executives remain cautious about the productivity gains and potential risks of generative AI technologies.
Ng’s ability to raise substantial funds in this challenging environment underscores his reputation and the ongoing belief in AI’s transformative potential. Despite the current market challenges, the AI Fund aims to continue supporting innovative AI solutions, connecting them with Ng’s extensive network, and guiding them from stealth development to market readiness.
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