Visa's $100 Million Investment in Generative AI Technology

Earlier this month (3/10), Visa revealed its ambitious plan to invest a staggering $100 million in companies dedicated to the development of generative AI technologies and applications poised to revolutionize the realms of commerce and payments.

The financial giant is set to deploy these investments through Visa Ventures, its renowned global corporate investment branch with a 16-year legacy.

Visa prides itself on its long-standing commitment to pioneering AI usage in the payments sector, dating back to 1993.

For those unfamiliar with the term, generative AI represents a burgeoning subset of artificial intelligence, honed through extensive training on vast datasets, with the ability to generate text, images, or other content based on provided textual prompts.

Jack Forestell, Chief Product and Strategy Officer at Visa, emphasized the pivotal role generative AI is destined to play in reshaping our daily lives and professional landscapes.

He stated, "While much of generative AI so far has been focused on tasks and content creation, this technology will soon not only reshape how we live and work, but it will also meaningfully change commerce in ways we need to understand."

Visa Ventures, under the guidance of David Rolf, sees tremendous potential in generative AI.

Rolf expressed the belief that it could emerge as one of the most transformative technologies of our era. He also shed light on the flexibility of the investment approach, indicating that the fund's investments will vary in size, with a focus on smaller investments in the range of a few million dollars due to the nascent stage of the industry.

However, they are open to larger investments where a compelling rationale exists.

Regarding their criteria for selection, Visa aims to back companies that harness generative AI to solve real problems in commerce, payments, and fintech.

This includes applications in B2B payment processes and infrastructure capable of profoundly impacting the world of commerce.

Rolf added that Visa's keen interest extends across the spectrum, from companies focused on data organization for generative AI to those enhancing user experiences, both professionally and personally.

An important consideration in their decision-making process is how well these companies align with responsible AI usage practices in accordance with Visa's policies.

Mary Ann Azevedo / TechCrunch