AI continues to dominate the investment landscape, with venture investors showing no signs of fatigue. In the first half of 2024 alone, over $35.5 billion was invested into AI startups globally, according to recent data from Crunchbase. Of the six venture rounds that raised over $1 billion, five were by AI companies.
The United States saw a significant share of these mega-rounds, with U.S.-based AI startups raising two of the billion-dollar rounds and 64% of the mega-rounds overall. These investments highlight the confidence that investors have in the potential of AI technology.
In July, Hebbia raised $130 million in a round led by Andreessen Horowitz. The startup utilizes generative AI to search large documents and received investments from prominent players such as Peter Thiel, Index Ventures, and Google Ventures. This funding round resulted in a valuation of $700 million for Hebbia.
Skild AI, based in Pittsburgh, secured a massive $300 million Series A round on July 9. Led by Lightspeed Venture Partners, Coatue, and Jeff Bezos’ Bezos Expeditions, the round valued the company at $1.5 billion. Skild AI focuses on developing technology to power robots.
In June, Bright Machines raised $106 million in a Series C round led by BlackRock. The startup specializes in smart robotics and AI-driven software and has raised a total of over $437 million in funding.
Etched.ai, based in San Francisco, closed a $120 million Series A round on June 25. The round was led by Primary Venture Partners and Positive Sum and featured participation from Two Sigma Ventures, Peter Thiel, and Kyle Vogt. Etched.ai aims to create chips that can run AI models faster and cheaper than GPUs.
EvolutionaryScale, a New York-based company, raised $142 million in a seed round on June 25. The round was led by Lux Capital, Nat Friedman (former GitHub CEO), and Daniel Gross (angel investor and former head of AI at Y Combinator). The startup focuses on developing biological AI models for therapeutic design.
On June 18, healthcare revenue cycle automation platform Akasa announced a $120 million funding round. Investors included Andreessen Horowitz, Costanoa Ventures, and Bond. Akasa has raised a total of $205 million in funding and is based in San Francisco.
AlphaSense, a market intelligence platform founded in 2008, raised a staggering $650 million in a Series F round announced on June 11. The round was led by Viking Global Investors and BDT & MSD Partners and included participation from CapitalG, SoftBank Vision Fund, and Goldman Sachs. AlphaSense has raised over $1.4 billion in venture funding and is valued at $4 billion.
In May, Elon Musk’s xAI raised an astonishing $6 billion in a Series B round. The startup, which aims to accelerate human scientific discovery, is valued at an equally impressive $24 billion.
Scale AI, a San Francisco-based startup that provides data-labeling services for training AI models, raised $1 billion in May. The Series F round was led by Accel and featured participation from Tiger Global, Spark Capital, and Amazon. Scale AI’s total funding now exceeds $1.6 billion, with a valuation of nearly $14 billion.
Suno, an AI-music creation platform based in Cambridge, Massachusetts, raised $125 million in a Series B round on May 21. The round valued the startup at $500 million and included participation from Founder Collective, Lightspeed Venture Partners, and Matrix.
Weka, a Silicon Valley-based company that has developed an AI-native data platform, raised $140 million in a Series E round on May 13. Valor Equity Partners led the funding round, with participation from Qualcomm Ventures, Nvidia, and Hitachi Ventures. Weka’s valuation stands at $1.6 billion.
CoreWeave, a New Jersey-based GPU infrastructure provider, raised $1.1 billion in a Series C round on May 1. Coatue led the round, with participation from Fidelity, Altimeter Capital, and Magnetar Capital. CoreWeave is currently valued at $19 billion.
In April, Blaize, an AI computing platform company, raised $106 million in a Series D round. Temasek, Franklin Templeton, and Bess Ventures were among the investors. Blaize has raised a total of $242 million since its founding in 2010.
Augment, a Palo Alto-based startup focused on AI coding assistance, raised $227 million in a Series B round in April. Lightspeed Venture Partners, Index Ventures, and Sutter Hill Ventures participated in the round, which valued the startup just shy of $1 billion.
Cognition, an applied AI lab startup, raised $175 million in a round led by Founders Fund on April 24. The company was founded in November 2023 and is already valued at nearly $2 billion.
Xaira Therapeutics, an AI drug discovery startup based in San Francisco, raised $1 billion in a Series A round led by Foresite Capital and ARCH Venture Partners. Sequoia, NEA, and Lux Capital also participated in the round.
Cyera, an AI-powered data security platform based in New York, closed a $300 million Series C round on April 9. Coatue led the round, with participation from Sequoia, Redpoint, and Accel.
In March, Celestial AI raised $175 million in a Series C round. The startup is building an optical interconnect technology platform for data centers and AI solutions. The funding round was led by Thomas Tull’s US Innovative Technology Fund.
FundGuard, a New York-based startup offering an AI-powered investment accounting operating system, raised $100 million in a Series C round on March 25. Key1 Capital led the round, with participation from Hamilton Lane, Blumberg Capital, and Team8.
Together AI, a platform designed to help create infrastructure and open-source generative AI for developing AI models, raised $106 million in a Series A round led by Salesforce Ventures. NEA, Kleiner Perkins, and Lux Capital also participated in the round.
Zephyr AI, based in Fairfax Station, Virginia, raised $111 million in a Series A round on March 13. Revolution Growth, Eli Lilly and Company Foundation, EPIQ Capital Group, and investor Jeff Skoll all participated. Zephyr AI utilizes AI to enhance drug discovery and precision medicine.
In February, Glean, an AI-driven enterprise search startup, raised $203 million in a Series D round. The round was led by Lightspeed Venture Partners and Kleiner Perkins. Glean has raised over $350 million in venture funding.
Figure, an AI robotics startup based in Silicon Valley, raised $675 million in a Series B round on February 24. Nvidia, OpenAI, and Microsoft participated in the round. Figure has raised over $850 million since its founding in 2022.
Abridge, which uses AI to transcribe medical conversations, raised $150 million in a Series C round on February 23. The round was led by Redpoint and Lightspeed Venture Partners. Abridge is now valued at $850 million.
Recogni, a company that designs high-output but low-power AI interface solutions, closed a $102 million Series C round on February 20. GreatPoint Ventures and Celesta Capital led the round.
Lambda, a deep learning infrastructure company based in San Francisco, raised $320 million in a Series C round on February 15. The round was led by Thomas Tull’s US Innovative Technology Fund. Lambda has raised over $900 million in venture capital.
Magic, an AI coding startup, raised $117 million in a Series B round on February 12. NFDG Ventures led the round. Magic has raised over $145 million in total capital.
In January, Kore.ai, a startup building conversational AI for enterprises, raised $150 million in a Series D round. FTV Capital led the round. Kore.ai has raised over $223 million in funding.
These significant funding rounds demonstrate the continued interest and investment in AI technology. As AI continues to advance and prove its value in various industries, investors are eager to support startups that are pushing the boundaries of what is possible with AI. The funding received by these companies will undoubtedly fuel their growth and accelerate the development of innovative AI solutions.
