Generative AI funding reached new heights in 2024

Generative AI funding hit $56B in 2024, up 192% from 2023, led by major companies like OpenAI and Anthropic.

: Generative AI funding reached $56 billion in 2024, marking a 192% increase from the previous year. Significant deals included Databricks’ $10 billion Series J and OpenAI’s $6.6 billion round. U.S. companies received the majority of investment, while non-U.S. startups secured noteworthy funding rounds. The oversaturation of generative AI startups and technical challenges may pose risks in 2025.

Generative AI funding soared to $56 billion in 2024, marking a 192% increase from 2023, as reported by PitchBook and compiled for TechCrunch. Prominent names such as OpenAI, Anthropic, and xAI secured substantial raises, with significant deals like Databricks’ $10 billion Series J and OpenAI’s $6.6 billion round contributing to the high investment figures.

In terms of mergers and acquisitions, $951 million was reported for 2024, while firms like Google and Microsoft engaged in various 'acqui-hire' deals, including a $2.7 billion hire by Google. U.S. companies amassed the bulk of funding, though international players like Beijing-based Moonshot AI and French startup Mistral saw notable rounds.

Ali Javaheri from PitchBook noted the risk of oversaturation within the emerging startups, particularly in AI coding assistants. Despite these concerns, infrastructure layer companies such as Crusoe and Lambda experienced substantial investment, with data center expansion suggested to reach $250 billion globally, according to KKR predictions.

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