Artificial Intelligence Market Overview AI is seeing massive capital inflows from a large pool of investors. Strategic, financial, and sovereign buyers alike show interest in AI — with check sizes ranging from small $10-50 million VC rounds to $10+ billion investments from large cap investors like Microsoft and Silver Lake Partners. In Q1 2024, AI startups raised $12.2 billion in capital through 1,166 transactions. This is a 9% rise in transaction volume and a 4% rise in dollar volume from Q4 2023 when $11.7 billion was raised through 1,072 transactions. This increase was mostly fueled by $5.3 billion in foundation model megadeals, led by Anthropic, xAI, and MiniMax. This shows both strong investor sentiment for the sector as well as exponential opportunities for growth as enterprises build onestablished AI/ML models.
AI Venture Capital Rounds by Number of Transactions
(# of Transactions)
1,269
1,219
1,166
1,160
+9%
1,129
1,072
Q4 '2022 Q1 '2023 Q2 '2023 Q3 '2023 Q4 '2023 Q1' 2024
(In Billions of USD) AI Venture Capital Rounds by Dollar Volume
16.3
+4%
12.8
12.2
11.7
11.1
7.9
Q4 '2022 Q1 '2023 Q2 '2023 Q3 '2023 Q4 '2023 Q1' 2024
Source: Crunchbase
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