The rise of Artificial Intelligence marks a new era, with everyone vying to stay competitive. As the time is passing, the hype of generative AI is growing steadily. People are also investing in generative AI because they know that it is going to bring a lot of opportunities for them. Pitchbook/TechCrunch conducted an analysis about the investments in generative AI and it was found that a total of $56 billion have been funded to AI companies from different VCs in 2024. These fundings have been done for various AI powered tools, like AI apps, services, images, videos, texts, speech, audio and much more. It just means that AI is going to be on everything soon and many companies are securing their future for that.
A total of 885 deals have been done in 2024 between different AI companies and VCs. In 2023, 691 deals had been done and only $29.1 billion had been invested in AI. Now, the investments have risen 192% from 2023, and it doesn't seem that it will slow down anytime soon. Many AI companies like Anthropic, OpenAI and xAI have been taking billions of funds to make more generative AI based products. In Q4 2024, a total of $31.1 billion deals had been done. Some notable generative AI investments were Anthropic's $4 billion Strategic Investment from Amazon, Databricks’ $10 billion series J, OpenAI’s $6.6 billion round and xAI’s $6 billion Series C.
There were only $951 million acquisitions and mergers of generative AI in 2024, with some deals made by Google, Amazon and Microsoft. $2.7 billion were funded by Google on CharacterAI’s staff’s hiring and licensing their technology. On the other hand, $650 million was given by Microsoft to the CEO of Inflection to license their AI models. Startups outside the USA took $6.2 billion of VC investments in 2024, with China based Monoshot AI taking $1 billion, Cologne based company DeepL taking $300 million and French based AI company taking $640 million.
In 2025, it seems that AI startups are going to become very saturated, and only some major AI developing coding assistants will be able to get big funds. Investors want to see good revenue growth in the companies they are investing in and there are some technical challenges too that may not let some startups make the cut for funds. Only the AI companies with good fundings will be able to grow as they need advanced technologies and data centers to produce AI products.
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A total of 885 deals have been done in 2024 between different AI companies and VCs. In 2023, 691 deals had been done and only $29.1 billion had been invested in AI. Now, the investments have risen 192% from 2023, and it doesn't seem that it will slow down anytime soon. Many AI companies like Anthropic, OpenAI and xAI have been taking billions of funds to make more generative AI based products. In Q4 2024, a total of $31.1 billion deals had been done. Some notable generative AI investments were Anthropic's $4 billion Strategic Investment from Amazon, Databricks’ $10 billion series J, OpenAI’s $6.6 billion round and xAI’s $6 billion Series C.
There were only $951 million acquisitions and mergers of generative AI in 2024, with some deals made by Google, Amazon and Microsoft. $2.7 billion were funded by Google on CharacterAI’s staff’s hiring and licensing their technology. On the other hand, $650 million was given by Microsoft to the CEO of Inflection to license their AI models. Startups outside the USA took $6.2 billion of VC investments in 2024, with China based Monoshot AI taking $1 billion, Cologne based company DeepL taking $300 million and French based AI company taking $640 million.
In 2025, it seems that AI startups are going to become very saturated, and only some major AI developing coding assistants will be able to get big funds. Investors want to see good revenue growth in the companies they are investing in and there are some technical challenges too that may not let some startups make the cut for funds. Only the AI companies with good fundings will be able to grow as they need advanced technologies and data centers to produce AI products.
Read next:
• New Survey Reveals How Much Nostalgic Americans Are About Early Internet Days and Old Websites
