It’s safe to say that VCs struck while the iron was hot this year where it concerned generative AI.

While venture capital investments overall fell compared to last year thanks to macroeconomic challenges and other related factors, startups in the generative AI space — and AI more broadly — did quite well.

Funding for AI-related startups surpassed $68.7 billion in 2023, according to PitchBook, with generative AI vendors like OpenAI, Stability AI and Anthropic accounting for a portion that is substantial of figure. And it also seems that the industry will probably shut the entire year with significantly greater opportunities as compared to couple that is past of.

But could the numbers that are top-level inaccurate?

A report on AI financial investment in Q3 by PitchBook, introduced today, discovered that “mega-deals” (for example., multi-hundred-million-dollar opportunities from big-name backers) vastly inflated offer totals this present year.

For instance, just a couple of months ago, Amazon pledged to spend as much as $4 billion in Anthropic, the organization establishing the chatbot that is AI-powered. OpenAI secured a $10 billion investment from Microsoft (albeit not all at once and partly in the form of cloud compute credits). Inflection AI, a firm creating what it describes as more “personal” AI assistants, raised $1.3 billion in a funding round led by Microsoft. The list goes on.

In Q3, VC funding inclusive of mega-deals totaled around $22.1 billion. But after subtracting the tranches that are tech-giant-led by generative AI startups, the full total is nearer to $15.1 billion when it comes to industry.