by BrainStream Chief Marketing Officer Ya-Hui (Laura) Kao
Forget building large language models (LLMs) from scratch—Silicon Valley investors are now focusing on AI-powered applications like BrainStream. Startups that once faced skepticism for simply “wrapping” OpenAI’s technology are now at the forefront of AI’s next big wave.
Take Harvey, for example. The legal AI software company, which leverages OpenAI’s models to assist lawyers, was once dismissed as just another “GPT wrapper.” Today, it’s a venture capital darling, with a $3 billion valuation after raising $300 million in funding. Similarly, Anysphere, the creator of the AI coding assistant Cursor, has hit $100 million in annual recurring revenue, reportedly faster than any software startup before it.
This surge in AI app funding mirrors the early smartphone app boom. As AI models improve and become more accessible, startups are finding innovative ways to build consumer-ready products. Investors are eager to back these companies, betting that AI applications will drive the most immediate revenue.
With venture capital shifting toward AI-powered services, the focus has moved beyond expensive model development. Instead, AI apps are proving to be the most lucrative space, drawing in both users and investors at an unprecedented pace.
Source: Bloomberg.com