The enthusiasm for Generative AI across VC investors seems to have reached a state of exponential acceleration. The excitement rests in the vision of a new AI-driven economy, where AI systems outcompete humans across even the domains of creativity—from writing best-selling books to producing award-winning movies—because not only are they faster in their outputs but significantly cheaper. Prompted by the economic opportunity unleashed by this vision, VCs last year poured a record-breaking $1.37B into Generative AI startups.