In 2024, artificial intelligence (AI) venture funding reached a new record, surpassing the US$100 billion mark for the first time, according to a new report by CB Insights, a business analytics platform.
This surge in funding was driven by mega-rounds of US$100 million and more, which accounted for 69% of total funding. Within this category, four deals exceeded US$1 billion, primarily targeting AI models and infrastructure.
These investments reflect several trends: first, the high cost of AI development; and second, that investors are confident that the economic benefits of the upcoming AI boom will be captured by the builders.
These four transactions involved:
Databricks: A cloud-based platform that provides tools for data engineering, machine learning (ML), and analytics. Databricks raised a whopping US$10 billion Series J in December to develop new AI products, pursue acquisitions, and expand internationally.
OpenAI: The company behind the widely popular generative AI (genAI) app and AI model ChatGPT. OpenAI secured US$6.6 billion in October, with investments from major backers, including Microsoft and Nvidia.
xAI: A company founded by Elon Musk focused on developing advanced AI models. xAI raised a US$6 billion Series C in December to accelerate its infrastructure and product development. This followed a US$6 billion Series B secured earlier in the year.
Anthropic: An AI research company best known for its Claude AI models. Anthropic raised US$4 billion in March from Amazon, strengthening their strategic collaboration to advance genAI technology.
In the corporate venture capital (CVC) space, tech giants and chipmakers were the most active investors during Q4 2024, led by Google, Nvidia and Qualcomm with 11, 8 and 8 transactions, respectively. These firms were also among the most active investors across all categories, ranking 5th and 10th.
This trend underscores the strategic importance of securing access to promising AI startup for tech companies. These firms are looking to strengthen their market position and enhance their core businesses, either through AI advancements, chip design or software-hardware integration.
Surging VC funding activity in 2024 fueled startup valuations. Of the 71 new tech unicorns minted in 2024, 32 were AI startups, accounting for nearly half of all new unicorns that year (38%). The figure brought the total number of unicorn AI companies to 245, as of early 2025.
While AI startups are reaching the US$1 billion threshold at much faster rates than non-AI startups – two years versus nine years at the median – AI unicorns are less commercially mature than non-AI unicorns, indicating their valuations are based more on potential than proven business models at this stage.
Europe shows strong AI potential
While the US dominated global AI funding (76%) and deals (49%) in 2024, countries in Europe showed strong potential in AI development.
According to median CB Insights Mosaic startup health scores, which measure the health and growth potential of private tech companies on a 0-1,000 scale, several European countries are emerging as promising regional hubs.
Of the top 10 countries by Mosaic score, outside of the US, six are in Europe. These are Sweden (650), France (645), the UK (630), Germany (630), Spain (615) and Italy (605).
Compared to the US, Europe’s AI sector is still relatively nascent. In 2024, early-stage deals dominated the AI funding landscape, comprising 81% of all deals for Europe-based AI startups, a seven-year high.
Europe is also seeing a rise in mergers and acquisitions (M&A) activity, with startups in the region representing over a third of AI M&A transactions in 2024. In total, Europe saw 136 AI M&A transactions last year, up 7% year-over-year (YoY) and marking the fourth consecutive year of growth in the area.
The UK led AI M&A activity in Europe in 2024, with 32 M&A deals, followed by Germany (18) and France (16).
Following global trends, AI funding in Europe saw a significant increase in 2024, increasing 38% YoY to US$10.9 billion. Deal counts also grew, rising from 943 to 1,030 transactions in 2024.
Some of the largest funding rounds in Europe in 2024 went to Wayve from the UK (US$1 billion), Mistral AI from France (US$502 million), Poolside from France (US$500 million), Helsing from Germany (US$488 million), and Magic from Austria (US$320 million).
One notable transaction occurred in Switzerland. ANYbotics, a provider of AI-driven robotic inspection solutions, raised US$60 million in December to accelerate its global scaling and recent expansion in the US. The deal was the 10th largest AI round of Q4 2024.
Featured image credit: edited from freepik
