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    AI Startups Raise $5.7B in Q1 2024, 40% Surge

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    AI startups raised a record $5.7 billion in Q1 2024, a 40% increase over last year. This shows strong venture capital interest in AI innovation.

    After a successful $25.5 billion fundraising campaign last year, venture capital investors are still Artificial intelligence (AI) concentration.

    Also read: Big tech companies sign open letter pledging to reduce AI risks

    With $5.7 billion raised year-to-date and a notable increase in investment, AI startups' revenue is expected to rise in Q1 2023 thanks to recent strong fundraising activity over the past two months. It exceeded the figure by nearly 40%.

    More funding for AI startups

    In recent years, VC investors have been paying close attention to the explosive growth of the AI ​​market. Since 2020, the market has largely tripled It's expected to reach $305 billion in revenue and 315 million users this year. As a result, investors continue to pour money into AI companies and startups, even as venture capital funding in most other sectors has declined significantly.

    crunch base Data shows that 2021 continues to be a record year for funding activity in the AI ​​startup market. In this year alone, AI startups raised his massive $49.6 billion in funding. This is more than double his number reported the previous year.

    Despite a great 2021, with funding down 37% year over year, AI startups managed to raise nearly $31 billion in 2022. Companies operating in this sector raised a total of $25.5 billion last year, but from 2022 it was $5.4 billion less. Funding continued to be sluggish.

    However, in 2024, the funding scene recovered and more funds were secured. AI startup They have raised $5.7 billion so far this year, $1.6 billion more than in the first three months of 2023.

    What's interesting is that even though total funding has increased, the number of funding rounds has decreased. This shows that AI startups were able to raise more money with fewer funding rounds. In Q1 2023, there were 86 VC investments in AI startups. According to Crunchbase data, 46 of these investments have been made to date.

    Figure is one of the startups focused on AI, which is essential to the fundraising process. The California-based startup recently announced that it has partnered with OpenAI in a groundbreaking way and raised an impressive $675 million in venture capital funding. This capital injection enabled Figure to achieve a remarkable capitalization of $2.6 billion.

    $173.5 billion in capital from AI startups

    Since the beginning of the year, the AI ​​startup market has raised nearly $6 billion in funding rounds, bringing total funding to $173.5 billion.

    More than half of that amount, $92 billion, went to U.S. companies, with California being the main hub.Asia raises $46.7 billion in funding round AI startup This is followed by European companies, which have raised a total of $23.8 billion.

    Statistics show that machine learning startups raised the most funding rounds by a wide margin, raising $79 billion. The next most valued startups are in AI software and analytics, with $67 billion and $29 billion, respectively.

    Previous research The artificial intelligence in hardware market is expected to reach approximately USD 381.98 billion by 2032, from USD 66.96 billion in 2024. In 2023, North America held the largest market share of 37.90% and dominated the industry.

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