Generative AI Startups Attract Business Customers, Investor Funding

At first glance, generative AI might seem like more of a curiosity than an enterprise-technology tool, said Peter van der Putten, director of the AI Lab at software firm Pegasystems Inc. "Creating cute pictures of a corgi in a house made of sushi isn't exactly a profitable business case, at least not for large enterprises," Mr. van der Putten said. And yet, he said, "generative AI startups are popping up left and right, in areas such as marketing, support, service and other content creation." The Morning Download delivers daily insights and news on business technology from the CIO Journal team. Jasper, an Austin, Texas-based startup launched last year, has developed a generative AI platform designed to auto-generate promotional blog posts and other marketing materials. Amid a sharp decline in venture-capital investing deals, Jasper last week announced a $125 million Series A fundraising round, which set its private-market valuation above $1 billion, the company said.