July 9 (Reuters) – Investments in artificial intelligence (AI) startup funding surged to $24 billion from April to June, more than doubling from the previous quarter, according to data from Crunchbase. This highlights the growing appetite for the new technology among investors.
Overall startup funding rose 16% sequentially to $79 billion last quarter, driven by #AIstartupfunding leading the sector. Healthcare and biotech followed closely behind in terms of investment volumes.
OpenAI’s ChatGPT success has spurred rapid adoption of AI across business productivity, healthcare, and manufacturing sectors. Investors and major tech firms emphasize that substantial returns on their AI investments are expected in the coming years. This underscores a strategic shift towards AI-driven solutions to enhance efficiency and innovation across various sectors.
Despite last quarter’s uptick, startup funding remains low compared to the levels seen in the past three years. #AIstartupfunding
Global funding declined 5% to $147 billion in the first half of the year and was flat compared to the second half of 2023, according to Crunchbase.
Tight U.S. monetary policy has slowed the revival of initial public offerings, a major source of returns for institutional investors. These investors often buy into startups and sell shares during IPOs.
The trend underscores AI’s pivotal role in shaping future technological advancements and economic landscapes globally. Thus, the surge in AI startup funding signifies a burgeoning sector ripe with innovation and investment potential.
