According to PitchBook, across the globe, venture capital firms poured $21.4bn (£17.5bn) into generative AI start-up firms and that was just to the end of September.
For comparison, in the whole of 2022, just $5.1bn was invested.
But some are warning that we should not get too carried away. Ben Wood, chief analyst at CCS Insight, says generative AI will have a "cold shower" in 2024.
"The hype has ignored, we think, a few obstacles that are just going to slow it down a bit in the short term," he says.
He points out that it's very expensive to develop and run a generative AI system. It requires a lot of computing power and expensive computer chips that are in short supply.
To mitigate those costs he predicts that some AI will move to a hybrid systems, where some of the processing is done locally - on your laptop or phone.
Mr Wood also says that regulation and legal battles might cool off the current mania for generative AI.
"Firms could find they end up in a situation where they invest loads of money in an AI powered service, and then have to roll some of it back to be compliant with the regulation."