Visa bets big on generative AI with $100 million fund

Visa, the global payment giant, has announced the launch of a $100 million venture fund dedicated to supporting generative artificial intelligence (AI) startups. This move follows a growing trend of investors showing interest in the AI sector this year. 

The funding for these startups will be channeled through Visa Ventures, Visa's corporate investment arm with a 16-year track record.  

“While much of generative AI so far has been focused on tasks and content creation, this technology will soon not only reshape how we live and work, but it will also meaningfully change commerce in ways we need to understand,” said Jack Forestell, Chief Product and Strategy Officer, Visa.  

According to a report by TechCrunch Visa Ventures has considerable flexibility regarding the number of investments it will make from the new fund and the average investment size. Given the early stage of the industry, it is expected that Visa will make a range of smaller investments, typically in the range of a few million dollars. However, Visa is open to larger investments when a strong rationale exists. 

Visa's criteria for selecting companies to support through this fund are centered on the application of generative AI to solve real problems in commerce, payments, and fintech. This includes a focus on B2B processes related to payments and infrastructure that can significantly impact commerce. Visa is interested in companies operating at various levels of the technology stack, from data organization for generative AI to the end-user experiences in both professional and personal contexts. Furthermore, Visa emphasizes the importance of responsible AI usage in line with its policies when considering potential investments, as per the report. 

Notably, high-profile companies like Microsoft and Alphabet's Google have already ventured into the AI space, a buzzword in the tech world this year, largely fueled by the popularity of chatbot ChatGPT.