AI startups continue breaking records with $33 billion

Contrary to some predictions of a slowdown in AI funding for 2024, the reality is quite the opposite. AI startups are not just breaking records; they are doing so at an accelerated pace, with more money raised than ever before.

  • Thursday, 4th July 2024 Posted 1 week ago in by Phil Alsop

According to data presented by, AI startups have achieved an unprecedented feat, raising a staggering $33 billion in the first half of 2024, the highest H1 figure in the market's history.

Almost 90% of the 2023 Total Raised in Just Six Months

Ever since the Nvidia boom, AI startups have become a new shiny object for VC investors, drawing much more fresh capital than most other sectors. According to Crunchbase data, companies and startups in this market have raised over $150 billion in funding rounds in the past three years, with 2021 as the record year for investments.

That year alone, VC investors poured over $48 billion of fresh capital into the market, the highest figure to date. Statistics show that 2022 saw $32.7 billion in VC investments, which increased to $37.2 billion last year. However, 2024 could set a new record, with AI startups almost outperforming 2023 figures in just six months.

The first quarter saw $8.2 billion invested in venture-backed AI startups, nearly 80% more than in the same period a year ago, which saw $4.6 billion worth of investments. While $8.2 billion of fresh capital is quite an impressive figure, that is nothing compared to money raised in the second quarter of the year. In Q2, VC funding activity skyrocketed by 240% year-over-year to $24.8 billion, the highest quarterly figure in the market's history.

With $24.8 billion raised in Q1, the total H1 funding amount jumped to an impressive $33 billion, 177% more than in the same period a year ago and the highest H1 figure ever.

Interestingly, while the total funding amount increased, the number of investments dropped, showing that AI startups managed to raise more fresh capital in fewer funding rounds. The Crunchbase data show that AI startups saw 516 VC investments in the six months of 2024, down from 569 in the same period of 2023.

AI Startups` Total Funding Hits $214 Billion

With $33 billion raised in funding rounds during the year's first half, the cumulative funding amount has jumped to almost $214 billion. More than 60% of the total funding, or $130.3 billion, has been directed to companies in the United States, with California leading the charge, proving the US leadership in the AI industry.

Asian AI startups raised the second-highest value in funding rounds, or $48.5 billion, with European companies not far behind at $27.4 billion. Statistics also show that machine learning startups have raised the most money in funding rounds, or $110.6 billion so far. AI software and information technology startups follow, with $73.2 billion and $53.1 billion, respectively.

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