The AI industry continues to be a powerhouse in fundraising, with a new report showcasing the sector's resilience amid broader market downturns. According to AltIndex.com's data, the global AI industry has not only doubled in value over three years but has also amassed a staggering $240 billion valuation, attracting a quarter of a billion users worldwide.
Despite the slowdown in overall VC funding, the AI sector witnessed remarkable growth, making 2023 the second-best fundraising year in its history, following the exceptional performance of 2021. Crunchbase data indicates that AI companies and startups amassed a remarkable $78.5 billion in 2021, more than doubling the figure from 2020.
While there was a 42 percent decline in fundraising activity in 2022 compared to the previous year, AI startups still secured an impressive $45.2 billion. However, 2023 surpassed this record, with a notable increase as organizations in the AI domain raised $49.8 billion, marking a substantial $4.5 billion growth from 2022.
The report highlights that nearly 60 percent of this massive sum, amounting to $28.8 billion, was secured in the first half of the year, despite a slight drop compared to the same period in the prior year. However, the latter half of 2023 witnessed a surge in fundraising activity, with AI businesses securing an additional $20.9 billion in funding rounds—a remarkable 40 percent increase from the latter half of 2022.
With the $49.8 billion raised in 2023, the cumulative funding in the AI realm has now surpassed an impressive $333 billion, underlining the robustness and enduring appeal of the AI industry for investors and startups alike.
(With Agency Inputs)
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