Billionaire exodus? California drew 10x more venture capital than anyother state (www.latimes.com)

California has continued to dominate the venture capital landscape in 2023, attracting over $335 billion—ten times the amount raised by New York—despite an ongoing narrative of billionaire departures due to high costs. This unprecedented influx of capital is largely driven by an AI boom, with around 90% of investments funneled into major AI players like Anthropic and OpenAI. Southern California is emerging as a key hub for investment, drawing nearly $8 billion across 207 deals, primarily in AI, space, and defense sectors, including significant contributions from Anduril Industries. The implications of this funding spike are profound for the AI/ML community, indicating a fierce competition for capital that favors established companies while posing challenges for non-AI startups and smaller investment funds. As large firms like Anthropic raise billions, the concentration of resources could marginalize mid-tier ventures that do not fit the AI mold. Industry experts warn that the current IPO landscape remains thin, putting pressure on the performance of upcoming offerings from AI giants to sustain the momentum. California’s deep talent pool and tech infrastructure continue to attract investment, underscoring the state's pivotal role in global innovation.