Starting up AI

Last year artifical intelligence (AI) caught the attention of many companies, consumers and investors as numerous AI-based applications were rolling out and many AI-related companies saw their share price increase substantially. Nonetheless, AI startups had a tougher year. In 2023, AI startups raised USD 42.5 billion across 2,500 equity rounds, down 10% year-over-year. Despite the drop, AI funding did better than broader venture capital funding which was down 42% in 2023, according to CB Insights. The US backed the trend in AI funding with USD 31 billion invested in 2023, an 14% increase. This compares to a 61% decrease in Asia and 29% decrease in Europe. Generative AI, the technology ChatGPT is based on, attracted most AI funding, with 48% of all AI funding going to it.

Source: CB Insights, February 2024.