Startups’ AI Revenue Is Booming. Some Investors Doubt It Will Last

Investor frenzy for artificial intelligence startups, which made up a third of global venture spending last year, shows no signs of slowing down—particularly when young startups have rapid revenue growth.

One of the latest to nail a big jump in valuation after fast revenue gains is Together AI. The two-year-old startup, which rents out servers to AI developers and provides software to train and run open-source models, recently raised at least $200 million at a valuation of more than $3 billion including the investment, according to two people familiar with the funding discussions.