Payments processor Visa on Monday launched a $100 million venture fund for generative artificial intelligence (AI) startups, joining a list of investors who have flocked to the sector this year.

Several high-profile names such as Microsoft and Alphabet's Google have backed the AI space, a buzzword in technology circles this year, after chatbot ChatGPT's popularity.

"While much of generative AI so far has been focused on tasks and content creation, this technology... will also meaningfully change commerce in ways we need to understand," Visa's chief product and strategy officer, Jack Forestell, said in a statement.

Generative AI is a technology that creates brand new content based on what it has learnt from past data.

(Reporting by Niket Nishant in Bengaluru; Editing by Shilpi Majumdar)