Explosive Growth of Investments in AI Startups in the Second Quarter of 2024
Date: 2024-07-10 Author: Oliver Abernathy Categories: BUSINESS
Investment in artificial intelligence (AI) startups reached new heights in Q2 2024, surpassing $24 billion. This represents double the year-on-year increase, demonstrating a significant increase in investor interest and confidence in the field. technology sector.
AI Domination in Massive Funding Rounds
AI startups made up the vast majority of major deals. Of the six “billion-dollar” funding rounds, five came from companies working in the field of artificial intelligence. Among the most notable transactions are the following:
- Billionaire Elon Musk’s xAI company raised $6 billion.
- CoreWave, an AI startup, received $1.1 billion.
- Wayve, a self-driving project, has secured $1.05 billion in funding.
- Scale AI raised $1 billion.
Overall Investment Growth
According to Crunchbase, the total amount of capital invested in various startups increased by 16%, reaching $79 billion. In addition to the AI sector, significant investments were also made in healthcare and biotech, indicating widespread interest in innovative areas.
Despite impressive growth in the second quarter, analysts note that overall funding levels remain below previous years. In the first half of 2024, global investment decreased by 5%, amounting to $147 billion.
One example of a major deal was AI startup CoreWave's 12-year deal with Bitcoin miner Core Scientific, potentially worth over $3.5 billion. This underscores the increasing integration of AI technologies into various industries, including cryptocurrencies.
Plans for the Development of AI Technologies
South Korean technology giant SK Hynix announced its intention to invest $75 billion in the development of AI chips. According to the conglomerate, such financial injections will significantly increase the company's revenues in the coming years, strengthening its position in the global market.
Venture capital firm Pantera Capital also announced a $200 million investment in artificial intelligence, further confirming venture capital's growing interest in the technology sector.
The explosive growth of investment in AI startups in the second quarter of 2024 underscores the importance and promise of this sector for global investors. With an increasing number of large deals and continued investment in technology development, AI continues to be at the center of the financial world's attention, promising further growth and innovation.
