American investors sank over US$27 billion into AI startups between April and June this year – a sum representing nearly 50 per cent of all U.S. startup funding during that period.
That is according to the renowned financial data analytics firm PitchBook. This startup tracking researcher, established in 2007, has offices around the globe.
The large amount of AI funding this year has prompted some venture capitalists to recommend investing heavily in early-stage tech startups involved with machine learning programs, large language models, etc.
“The AI train is leaving the station & you need to be on it,” Tom Loverro, an investor from California’s venture capital firm IVP, wrote on X last week.
Artificial intelligence companies that pooled significant capital during Q2 include Elon Musk’s xAI, which raised US$6 billion; and the data provider Scale AI, which generated US$1 billion. PitchBook says investors have been keen on AI startups in Europe this year as well.
Europe is seeing yet another record year for investment in generative AI startups as total venture capital funding in the region nears €2 billion. Big deals have been the key.https://t.co/w0VsaOVVGk
— PitchBook (@PitchBook) June 28, 2024
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Canadian startups pull interest too
VERSES AI Inc. (CBOE: VERS) (OTCQB: VRSSF), an early-stage AI company with one of its primary offices in British Columbia, is one of them. The company just obtained a substantial US$10 million investment from Abu Dhabi’s tech company Group 42.
Furthermore, Verses secured a US$7.3 million private placement in May. The company has a team of experienced scientists specializing in a broad range of disciplines and their applications for AI technologies.
Another, simply called “Clay,” just raised US$46.2 million in a Series B funding round. Clay was founded in 2022 by a pair of graduates from Montreal’s McGill University. The funding was led by Meritech Capital, Sequoia Capital and others.
Moreover, others like Toronto’s Untether AI – a company focused on developing specialized AI chips – have been solidifying Canada’s presence in the AI tech sector too. Ontario is also home to Cohere, which has attained backing from major companies like NVIDIA Corp. (Nasdaq: NVDA) and Oracle Corp (NYSE: ORCL).
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rowan@mugglehead.com
