AI startups continue to attract significant investment in 2024, with $35.5 billion raised in the first half of the year alone, according to recent data from Crunchbase. This surge in funding indicates that venture investors are still enthusiastic about the potential of AI technology and its applications across various industries.
In the first half of 2024, six venture rounds of over $1 billion were raised, with five of these raised by AI companies. Additionally, numerous AI startups managed to secure mega-rounds of over $100 million. The majority of these investments were made in U.S.-based companies, which accounted for two-thirds (64%) of the mega-rounds and two out of the six billion-dollar rounds.
One notable AI startup that raised a significant amount of funding is Hebbia, which raised $130 million in a round led by Andreessen Horowitz. Hebbia uses generative AI to search large documents and was valued at $700 million. This funding round also saw participation from investors like Peter Thiel, Index Ventures, and Google Ventures, highlighting the widespread interest in AI technology.
Similarly, Skild AI, a Pittsburgh-based startup that builds tech to power robots, raised an impressive $300 million in a Series A round. The round was led by Lightspeed Venture Partners, Coatue, and Jeff Bezos’ Bezos Expeditions, among others. This funding valued Skild AI at $1.5 billion, further demonstrating the strong investor confidence in the potential of AI-driven robotics.
Bright Machines, a startup that develops both smart robotics and AI-driven software, raised $106 million in a Series C round led by BlackRock. The round also saw participation from companies like Nvidia, Microsoft, and Eclipse Ventures. Bright Machines has raised a total of over $437 million in funding, indicating the widespread interest in AI-driven robotics.
Etched.ai, a San Francisco-based startup, raised $120 million in a Series A round. The round was led by Primary Venture Partners and Positive Sum, with participation from Two Sigma Ventures, Peter Thiel, and Kyle Vogt, among others. Etched.ai aims to make chips that can run AI models faster and cheaper than GPUs, a promising innovation that has attracted significant investment.
EvolutionaryScale, a New York-based startup, raised $142 million in a seed round. The round was led by Lux Capital, former GitHub CEO Nat Friedman, and Daniel Gross, an angel investor and former head of AI at Y Combinator. EvolutionaryScale is focused on developing biological AI models for therapeutic design, a sector with immense potential for AI technology.
AKASA, a healthcare revenue cycle automation platform, raised $120 million in a funding round led by Andreessen Horowitz. With a total funding of $205 million, AKASA has attracted investment from various companies, including Costanoa Ventures and Bond. This funding highlights the growing interest in AI applications within the healthcare industry.
AlphaSense, a New York-based market intelligence platform, raised a staggering $650 million in a Series F round. The round was led by Viking Global Investors and BDT & MSD Partners, with participation from CapitalG, SoftBank Vision Fund, and Goldman Sachs, among others. This funding brings AlphaSense’s total venture funding to over $1.4 billion and valued the company at $4 billion.
Elon Musk’s xAI, a startup building an AI platform to accelerate human scientific discovery, raised an impressive $6 billion in a Series B round. The round saw participation from investors like Sequoia, Valor Equity Partners, and Fidelity, among others. Valued at $24 billion, xAI showcases the immense potential and investor enthusiasm for AI-driven scientific research.
Scale AI, a San Francisco-based startup that provides data labeling services, raised $1 billion in a Series F round. Led by Accel, the round also saw participation from Tiger Global, Spark Capital, and Amazon, among others. Scale AI has raised over $1.6 billion in total funding and is currently valued at nearly $14 billion, highlighting the increasing demand for data-driven AI solutions.
Suno, a Cambridge-based AI music creation platform, raised $125 million in a Series B round. Founder Collective, Lightspeed Venture Partners, and Matrix participated in the round, along with former GitHub CEO Nat Friedman and former head of AI at Y Combinator, Daniel Gross. Suno’s valuation reached $500 million, indicating investor confidence in the potential of AI in creative industries.
Weka, a Silicon Valley-based AI-native data platform, raised $140 million in a Series E round. Valor Equity Partners led the round, with participation from Qualcomm Ventures, Nvidia, and Hitachi Ventures, among others. Weka was valued at $1.6 billion, further highlighting the investor interest in AI-driven data platforms.
CoreWeave, a New Jersey-based GPU infrastructure provider, raised $1.1 billion in a Series C round. Coatue led the round, with participation from Fidelity, Altimeter Capital, and Magnetar Capital, among others. CoreWeave, launched in 2017, is valued at $19 billion, reflecting the significant investment in AI infrastructure.
Blaize, an AI computing platform company, raised $106 million in a Series D round. Temasek, Franklin Templeton, and Bess Ventures were among the investors in this round. Blaize has raised a total of $242 million and offers high-performance, low-power AI interface solutions.
Augment, a Palo Alto-based AI coding assistance startup, raised $227 million in a Series B round. The round was led by Lightspeed Venture Partners, Index Ventures, and Sutter Hill Ventures. Augment’s valuation reached just below $1 billion, indicating the growing demand for AI-driven coding assistance tools.
Cognition, an applied AI lab startup, raised $175 million in a funding round led by Founders Fund. The round included investors like Ramp co-founder Eric Glyman, Stripe co-founders Patrick and John Collison, and DoorDash co-founder Tony Xu. Cognition was founded in November 2023 and has already reached a valuation of nearly $2 billion, highlighting the investor confidence in the potential of AI in research and development.
Xaira Therapeutics, a San Francisco-based AI drug discovery startup, raised $1 billion in a Series A round. The round was led by Foresite Capital and ARCH Venture Partners, with participation from Sequoia, NEA, and Lux Capital, among others. Xaira Therapeutics aims to leverage AI to enhance drug discovery and precision medicine.
Cyera, an AI-powered data security platform, raised $300 million in a Series C round led by Coatue. The round valued the New York-based startup at $1.4 billion and saw participation from Sequoia, Redpoint, and Accel, among others. Cyera’s success highlights the increasing investment in AI-driven cybersecurity solutions.
Celestial AI, founded in 2020, raised $175 million in a Series C round for its optical interconnect technology platform. The round was led by Thomas Tull’s US Innovative Technology Fund, with participation from M Ventures, Temasek, and Tyche Partners, among others. Celestial AI’s total funding amounts to $338 million, signaling investor confidence in its cutting-edge technology.
FundGuard, a New York-based startup offering an AI-powered investment accounting operating system, raised $100 million in a Series C round. Key1 Capital led the round, with participation from Hamilton Lane, Blumberg Capital, and Team8, among others. FundGuard’s valuation reached $400 million, highlighting the growing demand for AI solutions in finance.
Together AI, a platform for creating infrastructure and open source generative AI, raised $106 million in a Series A round led by Salesforce Ventures. NEA, Kleiner Perkins, and Lux Capital also participated in the round. Together AI aims to advance the development of AI models through collaborative efforts.
Zephyr AI, a Virginia-based startup, raised $111 million in a Series A round. Revolution Growth, Eli Lilly and Company Foundation, and EPIQ Capital Group were among the investors. Zephyr AI uses AI to enhance drug discovery and precision medicine, showcasing the potential of AI in healthcare.
Glean, an AI-driven enterprise search startup, raised a significant $203 million in a Series D round. The round was led by Lightspeed Venture Partners and Kleiner Perkins, with participation from Sequoia, General Catalyst, and Databricks Ventures, among others. Glean’s total venture funding surpassed $350 million, signaling strong investor interest in AI-powered search solutions.
Figure, a Silicon Valley-based AI robotics startup, raised $675 million in a Series B round. The round saw participation from Nvidia, OpenAI, and Microsoft, among others. Figure, founded in 2022, has raised over $850 million. This funding underscores the investor belief in the potential of AI-driven robotics.
Abridge, a Pittsburgh-based startup, raised $150 million in a Series C round. Redpoint and Lightspeed Venture Partners led the round, with participation from USV, IVP, and Spark Capital. Abridge uses AI to transcribe medical conversations, enabling efficient healthcare communication and documentation.
Recogni, a company specializing in high-output but low-power AI interface solutions, raised $102 million in a Series C round. The round was led by GreatPoint Ventures and Celesta Capital, with contributions from Pledge Ventures, Mayfield, and DNS Capital, among others.
Lambda, a deep learning infrastructure company based in San Francisco, secured $320 million in a Series C round. Thomas Tull’s US Innovative Technology Fund led the round, with participation from Gradient Ventures, Mercato Partners, and T. Rowe Price, among others. Lambda has raised over $900 million and is valued at $1.5 billion, highlighting the growing demand for deep learning solutions.
Magic, an AI coding startup, raised $117 million in a Series B round led by NFDG Ventures. CapitalG and angel investor Elad Gil also participated in the round. Magic has raised over $145 million in total capital, indicating investor confidence in the potential of AI in software development.
Kore.ai, a startup focused on conversational AI for enterprises, raised $150 million in a Series D round led by FTV Capital. Nvidia, Vistara Growth, and NextEquity Partners also participated in the round. Kore.ai has raised over $223 million since its founding in 2013, highlighting the demand for AI-driven conversational solutions in business.
The significant amount of funding raised by these AI startups showcases the continued investor interest in the potential applications of AI technology. From healthcare to robotics, AI is transforming various industries, driving innovation and offering vast opportunities for growth. As these startups continue to develop and refine their AI solutions, they are attracting substantial investment, enabling them to scale and bring their technologies to market. The future looks promising for the AI industry as it continues to receive significant financial backing and demonstrates its potential to revolutionize the way we live and work.
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