AI's New Creative Streak Sparks a Silicon Valley Gold Rush

Sarah Guo, founder of venture capital firm Conviction, organized a buzzy salon at a posh bar in San Francisco last week that drew an animated crowd of engineers, entrepreneurs, and financiers. Guo's event was just one of several held last week in San Francisco by investors and technologists excited by the commercial potential of what has been dubbed "generative AI." Her guests included AI engineers from large tech companies, fellow investors, and entrepreneurs building businesses powered by recent advances in algorithms that generate text or images. One of the guests of honor was Clement Delangue, CEO of Hugging Face, a company that hosts a number of open source generative AI projects, including one that recently sparked a frenzy of AI memes. He answered questions from engineers thinking about jumping onto the bandwagon with generative AI startups of their own. "It's just the hottest area from a fundraising perspective right now," Guo says.