Top Generative AI Startups to Watch in 2023

Top Generative AI Startups to Watch in 2023

Many startups are harnessing the power of generative AI to push the boundaries of creativity and problem-solving. 

Artificial intelligence (AI) is constantly evolving and among its latest breakthroughs is the promising technology of generative AI. This innovative technology refers to a category of AI algorithms that create new outputs based on their training data. Unlike traditional AI systems, generative AI generates content like images, text and audio instead of focusing on pattern recognition and predictions. The technology has inspired many startups to leverage its power and create groundbreaking products and services that will revolutionize industries.

In this article, we will explore how startups are harnessing the potential of generative AI to create personalized chatbots, immersive virtual try-on experiences and more. These innovative companies are poised to revolutionize industries and change lives in the second half of 2023.

Picture this: you’re sitting at your computer, wondering what it would be like to converse with Elon Musk or Mario from Nintendo. Well, wonder no more!, a California-based startup, specializes in generative AI chatbots that can emulate the style and personality of various characters. With the help of large language models, similar to the technology used in ChatGPT, you can interact with AI companions that are just as entertaining as the real thing. The growing community of creators at has developed millions of pre-existing AI characters for you to connect with and enjoy. These pre-existing characters provide unique and engaging experiences without the need for customization. 

Users can also find an AI companion tailored to their needs. The process is simple: users provide descriptions of the characters they wish to interact with, and the AI technology takes care of the rest. These characters can be completely unique or inspired by popular media, as users have the freedom to define the desired personality and make adjustments over time. The chatbot intelligently reacts to user descriptions and fine-tunes itself to cater to individual interests and needs. The platform offers a range of options, including companions that provide emotional support or analytical problem-solving.

According to the company, the platform has amassed 100 million monthly site visits within six months of its launch. This remarkable growth trajectory is similar to that of ChatGPT, which achieved a record for the fastest-growing user base by reaching 100 million monthly users in just two months. The rapid expansion of’s user base is a testament to generative AI technology’s significant potential and impact. 

Veesual AI

Veesual AI, a French startup founded by Maxime Patte and Damien Meurisse in early 2020, leverages deep learning and generative AI to provide an innovative solution for fashion e-commerce businesses through its virtual try-on technology. What sets Veesual apart from others in the market is its unique approach. It uses existing clothing images provided by brands and associates them with photos of models to create photorealistic virtual try-on combinations. This approach eliminates the need for costly 3D models and brings a new level of realism to the experience.

Customers can easily customize their desired look by selecting a mannequin they identify with and changing its virtual appearance by altering their morphology, skin color, hair and outfit. The experience is highly immersive and interactive, providing customers with a seamless and realistic virtual try-on experience. Veesual’s ultimate goal is to help consumers make informed purchases by providing a reliable and accurate representation of how the clothes will look on them.

In October 2020, the startup secured an undisclosed pre-seed investment from Techstars, cementing its position as a leading innovator in this space. Veesual’s technology promises to revolutionize how customers shop for clothes online and make it a more personalized experience.


Anthropic, a San Francisco-based startup founded by former OpenAI employees and led by CEO Dario Amodei, has entered the competitive landscape of generative AI with its own chatbot Claude. Designed to provide top-tier content generation, summarization and explanation services, Claude is highly customizable to meet the individual needs of its users. Its versatility makes it a valuable tool for various industries and enterprise teams seeking to optimize workflows and communication capabilities. 

In customer service, Claude acts as a knowledgeable virtual assistant, delivering friendly and informative interactions while seamlessly handling tasks and ensuring customer satisfaction. Meanwhile, in the legal field, its AI-powered intelligence swiftly extracts crucial information from complex documents, empowering legal professionals to make informed decisions efficiently.

Claude’s pricing model sets it apart from competitors, as it charges customers based on the number of text characters they use. This innovative approach provides an alternative to traditional pricing models and offers customers more flexibility and cost control. For the regular version of Claude, the cost is US$2.90 per million characters for prompts and US$8.60 per million characters for outputs. Meanwhile, the Claude Instant version costs even lower, at US$0.43 per million characters for prompts and US$1.45 per million characters for outputs. 

Claude is a high-performance model, while Claude Instant is a faster, more affordable alternative maintaining impressive capabilities. It’s important to note that both versions have a context window of 9,000 tokens. Claude’s unique pricing model provides a cost-effective solution for businesses using generative language models without breaking the bank.

The startup has also secured a significant financial boost from Google. With a US$300 million investment in February 2023, the tech giant holds a 10 percent stake in the startup, demonstrating Google’s commitment to pushing the boundaries of generative AI. 


Tome, a San Francisco-based company, is on a mission to transform visual storytelling as we know it. Powered by generative AI features, this innovative platform can turn any idea into a visually stunning narrative that captivates and engages audiences. 

From students to top-level executives, anyone can use Tome’s intuitive interface to create compelling content, brand visions, lesson plans, product launch strategies and much more with just a single user prompt. With Tome, users can generate everything from images and copy to complete story outlines, making it a one-stop shop for all their storytelling needs. And that’s not all—Tome also seamlessly integrates with other popular platforms like Figma, YouTube and Giphy, allowing users to create and share their narratives across multiple channels easily.

Tome’s CEO Keith Peiris and co-founder Liriani, both former managers at Meta, spent two years developing this platform before launching a free beta version in September 2022. Two months later, the platform integrated AI models from OpenAI. According to Forbes, Tome achieved a remarkable feat just 134 days after its launch by reaching a million users, making it the fastest productivity tool to achieve this milestone. This puts it ahead of well-established heavyweights in the tech industry, such as Zoom, Slack and Dropbox.

Tome currently has a free sign-up option, but each user starts with 500 credits depleted with every use of the generative AI features. Credits can only be replenished through referrals. However, Tome also has a paid monthly subscription of about US$10, providing users unlimited access to the platform.

With the rapid growth and development of generative AI, we can anticipate the emergence of even more impactful startups in the years to come. The potential for generative AI is limitless, and it is exciting to see how these startups will continue to push the boundaries and shape the future of technology. The world is evolving, and with these top generative AI startups leading the way, we can expect to see unprecedented advancements and transformations across multiple industries in the near future.

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