AI startups captured a record-high portion of the funding pie final yr.
In accordance with PitchBook knowledge launched on Tuesday and obtained by Bloomberg, enterprise capitalists poured $209 billion whole into U.S. startups in 2024 — and almost half of that funding, or a document $97 billion, went in direction of startups specializing in AI.
The quantity raised by this one class of startups is greater than your complete quantity of startup funding raised by early-stage corporations in Europe and Asia. Europe noticed funding for all startups attain $61.6 billion in 2024 whereas funding in Asia hit $75.9 billion.
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In the US, AI corporations like xAI, OpenAI, and Anthropic led the way in which in funding.
xAI raised $6 billion in a Could Collection B spherical and one other $6 billion in a December Collection C to develop its AI chatbot Grok. OpenAI raised $6.6 billion in October to maintain advancing ChatGPT, which has over 300 million weekly customers.
Anthropic raised $4 billion from Amazon in November and agreed to make Amazon Internet Companies its most important coaching associate.
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How Funding for AI Startups Has Grown
Further knowledge exhibits how funding for AI startups has swelled over time. Enterprise database platform Crunchbase launched knowledge on Tuesday displaying that whereas world enterprise funding elevated modestly general from $304 billion in 2023 to $314 billion in 2024, funding particularly for AI corporations grew greater than 80% in that very same time from $55.6 billion to over $100 billion.
Almost a 3rd of all world enterprise funding final yr went to AI startups, per Crunchbase. The information confirmed that solely one-third of AI funding went to corporations like OpenAI which can be creating foundational AI fashions.
The remainder of the AI startups that had been funded, the bulk, centered on how AI utilized to sectors like healthcare, safety, and robotics.