According to Crunchbase, over a quarter of the total investments in the US based startups this year has gone toward AI companies, more than double the percentage of last year. This is equivalent to 1 in 4 dollars has been invested in USA AI startups in 2023, so no wonder every company building a new technology has AI emblazoned everywhere in their pitch decks. Comparatively between, 2018 and 2022, AI startups, received an average of 12% of funding capital.
A few of the highlights are: funding for AI-related startups surpassed $23B in 2023, and I suspect many of these investments had generative AI laced in the solutions, , whereas non-AI funding reached over $67B.
This marks a significant change compared to 2021, when AI-related funding amounted to $42.76B versus $293.4B for non-AI funding. This is very important because despite a 50% decline in North American VC funding in Q1 2023, the AI sector has created a growth frenzy impacting many other areas.
Perhaps what is really happening is simply every industry or functional process is awakening to the reality that AI must be a cornerstone in their technology stacks to get into the VC consideration demonstrating how fast the AI market is maturing.
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