Five trends driving the adoption of Cloud AI technologies, showing reality outpaces hype

In 2023, 60% of total AI investment, amounting to $23 billion, was invested in foundational model companies such as OpenAI, Anthropic, Mistral, and Cohere. These companies collectively held a market cap of $124 billion.

Bessemer Venture Partners believes that AI has supplanted legacy cloud and that companies not leveraging AI in their cloud software are likely to be left behind4. They observe that AI-native firms have emerged, and the adoption of AI technology is critical for cloud software companies to stay competitive.