Hello Sifted reader,

The tech Twitterati were rubbing their hands together last week when OpenAI dropped GPT-4 — the latest iteration of its large language model, which brought us chatbot ChatGPT and text-to-image generator DALL-E.

But all the hype around generative AI is also birthing a slew of generic "AI startups" that are struggling to find an actual problem to solve. And that ain't good.

People who've built long careers in the sector now worry that VCs throwing indiscriminate money at their new obsession could be setting us up for a "bloodbath" of failures.

Today, Tim Smith looks into whether we're in the middle of a bubble.

Also from the Sifted newsroom:

A MESSAGE FROM OUR SPONSOR AND RISING ACADEMY

Transform your marketing capability and accelerate growth

And Rising Academy upskills marketing from within — working on live projects across strategy, brand, marketing tech, media, creative, AI and more.

Learn more about the academy

🔎 Where are all the startup operators-turned-VCs? In the ranks of European VCs, there are plenty of former bankers, consultants and, these days, founders. There aren’t so many operators-turned-VCs — but things are changing, as we learnt on Friday. Our list of European startup operators-turned-VCs is now about 50-strong, thanks to lots of emails from Sifted readers. If we’ve still missed you off the list — let us know here.

➡️ The overlooked exodus in European tech. Europe's most promising early-stage deeptech founders are increasingly looking to the US and Asia because they don't feel they can build big on the continent. That's according to CEO and cofounder of Halitus, Sven Jungmann. How does he know? Because he's thought the same thing himself.

🎓 10 university spinouts to watch, according to VCs.

Sifted turned to VCs to find out which European university spinouts should be on your radar. They include:

💦 Watercycle Technologies is developing a filtration process that can extract lithium from sub-surface waters, "which could be massive for the EV space".
🌪 Mitiga Solutions offers AI-powered risk insurance coverage, which takes natural hazards like climate change into account.
🚗 Cheetah AI is creating software to make it easier to develop and implement AI models for the testing of drones, autonomous vehicles and smart buildings.

Find the full list here.

Sifted Talks | Online | March 29

From ambition to climate action: Saving the world one step at a time
Struggling to scale while keeping the carbon footprint down? Worried about greenwashing? Join SOJO, Brompton Bicycle, South Pole and Revent on March 29 as they reveal how to embark on your climate journey and share tips for remaining sustainable as you grow. Register and attend for free.

Sifted Sessions | Berlin | May 25

Sifted's back on the road in May — bringing together the best the DACH region has to offer. Join the likes of Earlybird, Climeworks and Ecosia to discuss fundraising challenges, the end of B2C and whether upping sticks and chasing the American dream is actually worth it. Get your ticket now.

City Week 2023 | London | April 24-26
City Week’s three-day event will assemble top names from the global financial services industry, politics and the international regulatory community. Use code CITY14SIF for a 20% discount!