Building foundation models from scratch requires enormous resources in terms of computing power and human talent.
VC investments in foundational models are reaching a saturation point, and LLMs are considered 'good enough' for building applications.
Application companies that build on top of existing models attracted more funding in Q1 2024 compared to Q1 2023.
Instead of investing in foundational models, VC investors should focus on areas like neurosymbolic AI, efficient AI models, context-aware AI, and ethical and explainable AI.