The growing interest in artificial intelligence (AI) startups is leading to a surge in investment, particularly in generative AI (GAI) technology. Dust, a two-person startup aiming to build AI tools for improving white-collar workers' productivity, recently received a sizable seed fundraising round of $5m led by Sequoia Capital. Investment in GAI startups has ballooned from $1.5bn in 2020 to $5.9bn since the beginning of 2022, according to PitchBook data. The closure of Silicon Valley Bank may hamper debt financing, but venture capitalists have stated that interest in funding AI startups remains high, particularly for top early-stage founders. Competing with big tech companies' incumbency advantages and seeking any technical advantage to make a startup stand out are also factors fueling the investment craze. The enthusiasm for GAI has led to some investors investing in lacklustre companies that may fail, potentially tarnishing the sector.