Despite growing concerns about AI fatigue, the appetite for investing in artificial intelligence shows no signs of abating. In the first half of 2024 alone, AI startups have attracted a staggering $35.5 billion globally, with five out of the six largest funding rounds exceeding $1 billion. U.S.-based AI companies have been particularly successful, accounting for nearly two-thirds (64%) of the mega-rounds and two of the billion-dollar rounds. Here’s a look at the 28 U.S. AI startups that have raised $100 million or more so far in 2024.
Leading the Charge: Mega Rounds
Hebbia raised $130 million on July 8, led by Andreessen Horowitz, with participation from Peter Thiel, Index Ventures, and Google Ventures. Hebbia specializes in generative AI for searching large documents, reaching a $700 million valuation.
Skild AI announced a $300 million Series A on July 9, led by Lightspeed Venture Partners, Coatue, and Jeff Bezos’ Bezos Expeditions, valuing the Pittsburgh-based robotics company at $1.5 billion.
Bright Machines secured $106 million in a Series C round on June 25, led by BlackRock with contributions from Nvidia, Microsoft, and Eclipse Ventures. The startup focuses on smart robotics and AI-driven software.
Etched.ai raised $120 million on June 25 in a Series A round led by Primary Venture Partners and Positive Sum. This San Francisco startup aims to develop chips that outperform GPUs for running AI models.
EvolutionaryScale closed a $142 million seed round on June 25, led by Lux Capital and notable angels like Nat Friedman and Daniel Gross. The New York-based company is pioneering biological AI models for therapeutic design.
AKASA, a healthcare revenue cycle automation platform, raised $120 million on June 18, adding to its total of $205 million in funding.
AlphaSense attracted $650 million in a Series F round announced on June 11, led by Viking Global Investors. This New York-based market intelligence platform now boasts over $1.4 billion in total funding.
xAI, Elon Musk's ambitious project, raised an astonishing $6 billion Series B on May 31. The AI platform is focused on accelerating scientific discovery and is valued at $24 billion.
Scale AI secured $1 billion in May for its data-labeling services, with the Series F round led by Accel. The San Francisco company is valued at nearly $14 billion.
Suno, an AI music creation platform, raised $125 million in a Series B round on May 21. The Cambridge startup is valued at $500 million.
Weka garnered $140 million in a Series E round on May 13. The Silicon Valley-based company, which creates an AI-native data platform, is valued at $1.6 billion.
CoreWeave, a GPU infrastructure provider, closed a $1.1 billion Series C on May 1. The New Jersey-based company is valued at $19 billion.
Blaize raised $106 million in a Series D round on April 29 for its AI computing platform. The company, founded in 2010, has accumulated $242 million in funding.
Augment, based in Palo Alto, secured $227 million in a Series B round on April 24 for its AI coding assistance tools.
Cognition raised $175 million on April 24. The applied AI lab had previously raised $21 million in March and is valued at nearly $2 billion.
Xaira Therapeutics closed a $1 billion Series A round on April 23. The San Francisco-based AI drug discovery startup is backed by Foresite Capital and ARCH Venture Partners.
Celestial AI secured $175 million in a Series C round on March 27 for its optical interconnect technology platform for data centers and AI solutions.
FundGuard, offering an AI-powered investment accounting operating system, raised $100 million in a Series C round on March 25.
Together AI raised $106 million in a Series A round led by Salesforce Ventures, valuing the company at $1.2 billion.
The Growing Momentum
This surge in funding reflects a sustained interest and confidence in AI's transformative potential across various sectors. From healthcare and market intelligence to robotics and chip development, these startups are pioneering innovations that promise to reshape industries and drive economic growth.
Investors remain bullish on AI, underscoring the sector's potential to deliver significant returns despite occasional skepticism about the technology's immediate practical applications. The diverse applications and ambitious visions of these startups demonstrate the vast scope of AI's impact and the confidence that investors have in their ability to bring these visions to fruition.
As we move further into 2024, it will be fascinating to see how these companies evolve and the new breakthroughs they will bring to the forefront. The substantial investments highlight a robust pipeline of innovation and a relentless pursuit of advancements that could define the future of technology and society.
Conclusion
The investment trends in the first half of 2024 illustrate a vibrant and dynamic AI ecosystem in the U.S., poised for continued growth and impact. These 28 startups, each securing significant funding, exemplify the innovation and ambition driving the AI revolution forward.
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