Link: Stripe data: AI startups took a median 11 months to hit $1M in annualized revenue after their first sales, vs. 15 months for the previous gen of SaaS startups (Madhumita Murgia/Financial Times)

Artificial intelligence (AI) start-ups are generating revenue at an unprecedented rate, surpassing earlier software company benchmarks. According to Stripe's analysis, these companies reach millions in sales within the first year, much faster than non-AI tech firms.

Investments in AI have raised expectations about its economic impact, especially with Big Tech's heavy spending on related infrastructure.

However, newer AI firms are progressing more rapidly than past tech start-ups, often launching revenue-generating products swiftly.

Stripe, valued at $65 billion, examined revenues for top AI companies on their platform, like OpenAI and Anthropic.

These AI start-ups achieved $1 million in annualized revenue within 11 months, quicker than peers from previous generations.

Despite concerns from Goldman Sachs about AI sector profitability due to high operating costs, AI products like ChatGPT have shown immense consumer interest.

ChatGPT reached 100 million users in just two months, demonstrating potent market appeal.

The global demand for generative AI is robust, with significant revenues coming from international markets.

This demand boosts AI ventures across various applications, indicating a strong worldwide market presence.

Start-ups are leveraging AI to create innovative products that increase efficiency and meet rapidly evolving market needs.

They benefit from advanced algorithms to build solutions like automated translation and voice generation tools, pushing them ahead in the tech evolution. #

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