Generative AI startups are receiving 40% of all venture capital investments in the cloud sector. According to Accel’s Euroscape report, venture funding for cloud startups in the US, Europe, and Israel is projected to rise to $79.2 billion. Ryan Browne reports for CNBC that funding for the cloud industry increased by 27% year-over-year – the first year of growth in three years. This surge is largely driven by excitement around artificial intelligence. Accel partner Philippe Botteri explains that AI is “sucking the air out of the room” in the cloud space, which is visible in both public and private markets.