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September 8, 2023

Top 5 Game-Changing AI Startups of YC Summer 2023

217 Startups Unveil Breakthroughs, smaller than last 235-firm cohort as VC enthusiasm a slight slump

It's that exciting time of the year when Y Combinator's newest cohort of startups step into the spotlight to showcase their innovations. In the next two days, a lineup of approximately 217 companies will take center stage, slightly smaller than last winter's cohort of 235, reflecting a mild dip in VC enthusiasm.

The first half of 2023 witnessed VCs backing nearly 4,300 deals, amounting to a substantial $64.6 billion. On the surface, these numbers appear robust, but they conceal a 49% drop in deal value compared to H1 2022 and a 35% decrease in deal volume year-over-year.

However, amid these shifting tides, one sector stands out as a shining star: AI (Artificial Intelligence). This dynamic field has attracted substantial investment, with almost a fifth of global venture funding from August to July originating from AI-related ventures, as reported by CrunchBase. This surge in AI innovation is vividly apparent in Y Combinator's summer 2023 cohort, which boasts a remarkable 57 AI startups, more than double the count from the winter 2022 batch.

In this article, we'll delve into the captivating world of AI startups within the Y Combinator Summer 2023 cohort, highlighting those that exhibit the most promise and differentiation.

Several startups in Y Combinator's W2023 cohort aren't focused on what AI can achieve but rather on the essential tools and infrastructure required to build AI from the ground up. One notable example is Shadeform, founded by data engineers and distributed systems architects Ed Goode, Ronald Ding, and Zachary Warren. Shadeform offers a platform that allows customers to access and deploy AI training and inferencing workloads across various cloud providers. This innovative solution ensures that AI jobs run efficiently and cost-effectively.

Another promising AI infrastructure startup is Cerelyze, founded by former Peloton AI engineer Sarang Zambare. Cerelyze streamlines the process of translating AI research papers, often found on platforms like, into functional code. This addresses a common challenge in the AI community where valuable research papers lack the corresponding code for practical implementation. While Cerelyze currently focuses on a subset of papers, its potential for automating AI implementation is intriguing.

Sweep, although not an AI infrastructure startup per se, offers a valuable service for developers. Launched this year by William Zeng and Kevin Lu, both with experience at Roblox, Sweep autonomously handles small development tasks such as debugging and feature requests. By utilizing large language models, Sweep can analyze code errors and GitHub issues and even generate code to address them. However, it maintains a human-in-the-loop approach, allowing developers to review and edit the code before implementation.

Shifting focus to AI applications, we have Nowadays, co-founded by Anna Sun and Amy Yan. Nowadays positions itself as the "AI co-pilot for corporate event planning." It simplifies the often complex and labor-intensive process of organizing corporate events by leveraging AI. By providing event details, Nowadays automates interactions with venues and vendors, managing emails and phone calls on behalf of event planners. While the exact mechanics of Nowadays' operation remain somewhat mysterious, it represents a compelling solution for a potentially massive market.

Another noteworthy startup is FleetWorks, born from the minds of ex-Uber Freight product manager Paul Singer and Quang Tran, who previously worked on ambitious projects at Airbnb. FleetWorks targets freight brokers, streamlining their operations by automating routine calls and emails. This AI-powered platform can book and track loads, schedule appointments, and negotiate with carriers, significantly reducing the workload on brokers and improving efficiency.

The Y Combinator Summer 2023 cohort showcases a vibrant AI landscape, with startups addressing critical aspects of AI infrastructure, development tools, and practical applications. As AI continues to reshape industries and drive innovation, these startups hold the promise of pushing the boundaries of what AI can achieve and making it more accessible to businesses and developers. Keep an eye on these pioneers as they navigate the ever-evolving AI landscape, bringing forth the next wave of transformative technologies.

Neil Hodgson Coyle
Neil Hodgson-Coyle
Editorial chief at TechNews180
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