Investing in AI Startup touching the sky As reported by Crunchbase, it reached $24 billion from April to June, more than double the previous quarter.
Artificial Intelligence, Machine Learning – Artistic Interpretation. Image credit: Steve Johnson via Unsplash, free license
This surge reflects growing enthusiasm for emerging AI technologies. Overall, startup funding saw a 16% sequential increase, reaching $79 billion last quarter, with AI becoming the leading sector for the first time, overtaking healthcare and biotech.
The unprecedented success of OpenAI’s ChatGPT has sparked a competitive rush to integrate the latest AI technologies into a variety of sectors, including business productivity, healthcare, and manufacturing. However, investors and major tech companies warn that it will take years to achieve significant returns on their extensive AI investments.
Notably, five of the $6 billion funding rounds were directed toward AI companies. Notable deals include Elon Musk’s xAI raising $6 billion and AI infrastructure provider CoreWeave securing $1.1 billion in its latest funding round. Other notable recipients were automated driving company Wave and data preparation company Scale AI.
Despite recent growth, overall startup funding remains low compared to levels seen over the past three years. Global funding declined 5% to $147 billion in the first half of the year, remaining stable compared to the second half of 2023.
Written by Elias Noreika
