Despite talks of “AI fatigue,” the enthusiasm for AI startups among investors remains strong. 

According to recent data from Crunchbase, over $35.5 billion was invested globally in AI companies in the first half of 2024 alone. 

Impressively, AI firms secured five of the six largest funding rounds of more than $1 billion.

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• Over $35.5 billion invested in AI startups globally in the first half of 2024. 
• Five of six largest venture rounds over $1 billion were for AI companies. 
• U.S. AI startups secured nearly two-thirds of mega-rounds.

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Investors Pour Billions into AI Startups Despite Market Concerns

U.S.-based AI companies have been particularly successful, capturing two billion-dollar rounds and nearly two-thirds (64%) of the mega-rounds this year. 

Below is a summary of some U.S.-based AI startups that have raised $100 million or more in 2024:

July

• Hebbia: Hebbia, a company using generative AI to search large documents, raised $130 million in a round led by Andreessen Horowitz, closing on July 8. Investors include Peter Thiel, Index Ventures, and Google Ventures. Hebbia is valued at $700 million.
• Skild AI: Pittsburgh-based Skild AI, which develops robot technology, announced a $300 million Series A round on July 9. The round, led by Lightspeed Venture Partners, Coatue, and Jeff Bezos’ Bezos Expeditions, valued the company at $1.5 billion.

June

• Bright Machines: Specializing in smart robotics and AI-driven software, Bright Machines raised $106 million in a Series C round led by BlackRock, closing on June 25. Other investors include Nvidia, Microsoft, and Eclipse Ventures.
• Etched.ai: San Francisco-based Etched.ai raised $120 million in a Series A round on June 25, led by Primary Venture Partners and Positive Sum. The company focuses on making AI models faster and cheaper than GPUs.
• EvolutionaryScale: This New York-based startup is developing biological AI models for therapeutic design. It raised $142 million in a seed round that closed on June 25, led by Lux Capital and other prominent investors.

May

• xAI: Founded by Elon Musk, xAI raised a staggering $6 billion in a Series B round on May 31. Investors include Sequoia, Valor Equity Partners, and Fidelity. The startup aims to accelerate human scientific discovery and is valued at $24 billion.
• Scale AI: Providing data-labeling services for AI training, Scale AI raised $1 billion in a Series F round in May, led by Accel with participation from Tiger Global, Spark Capital, and Amazon. Scale AI is valued at nearly $14 billion.
• Suno: The AI-music creation platform Suno raised $125 million in a Series B round on May 21, valuing the Cambridge, Massachusetts-based startup at $500 million.

April

• Xaira Therapeutics: This San Francisco-based AI drug discovery startup raised $1 billion in a Series A round on April 23, led by Foresite Capital and ARCH Venture Partners, with participation from Sequoia and others.
• Cyera: An AI-powered data security platform, Cyera raised $300 million in a Series C round on April 9, led by Coatue. The New York-based startup is now valued at $1.4 billion.

March

• Celestial AI: Founded in 2020, Celestial AI raised $175 million in a Series C round on March 27, led by US Innovative Technology Fund. The company focuses on optical interconnect technology for data centers and AI solutions.
• FundGuard: This New York-based startup offers an AI-powered investment accounting system and raised $100 million in a Series C round on March 25, led by Key1 Capital.

February

• Glean: An AI-driven enterprise search startup, Glean raised $203 million in a Series D round on February 27, led by Lightspeed Venture Partners and Kleiner Perkins.
• Abridge: Pittsburgh-based Abridge, which uses AI to transcribe medical conversations, raised $150 million in a Series C round on February 23.

January

• Kore.ai: Building conversational AI for enterprises, Kore.ai raised $150 million in a Series D round announced on January 30, led by FTV Capital.

These investments demonstrate a robust confidence in AI’s potential across various sectors, from healthcare to robotics. 

As AI technology continues to advance, these companies are leading the charge, driving innovation and attracting substantial financial backing.

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