IANS | 21 Dec, 2023
While other markets saw a significant downturn in fundraising, AI
companies have raised nearly $50 billion this year to date, the second
highest figure in the market's history, a new report revealed on
Wednesday.
According to data presented by AltIndex.com, the global
AI industry has more than doubled in just three years, reaching a $240
billion value and a quarter of a billion users worldwide.
"This
impressive growth has drawn a lot of attention from VC investors who
poured billions of dollars into AI companies and startups. Despite the
overall VC funding slowdown, the strong fundraising activity continued
this year, tuning 2023 into the second-best year for fundraising in the
AI market's history after 2021," the report said.
According to
Crunchbase data, AI companies and startups raised $78.5 billion that
year alone, more than double the amount seen in 2020.
Following a
spectacular 2021, fundraising activity fell by 42 per cent
(year-over-year), yet AI startups still collected a whopping $45.2
billion in 2022.
However, statistics revealed that 2023 was even
more successful, with organisations and startups in this field raising
$4.5 billion more than last year or $49.8 billion in total.
Nearly
60 per cent of the total value, or $28.8 billion, was raised in the
first half of the year, a 4 per cent drop from the same period the
previous year, the report mentioned.
However, fundraising activity
increased dramatically in the year's second half, with AI businesses
raising an additional $20.9 billion in funding rounds, over 40 per cent
more than in H2 2022, it added.
With nearly $50bn raised in
funding rounds this year, the cumulative funding amount in the AI space
has climbed to an impressive $333 billion.
