Link: PitchBook: generative AI companies worldwide raised $56B from VCs in 2024 across 885 deals, up 192% from 2023, with startups outside the US raising just $6.2B (Kyle Wiggers/TechCrunch)

The generative AI bubble continued to expand in 2024, drawing unprecedented levels of investment.

Investors funneled $56 billion into generative AI companies worldwide across 885 deals, marking a 192% increase from the previous year.

Ali Javaheri, an analyst at PitchBook, reported that major players like OpenAI and Anthropic are still securing significant funding and launching innovative products. High-profile funding rounds in Q4 included Databricks raising $10 billion and OpenAI securing $6.6 billion.

While mergers and acquisitions represented only a small fraction of investments, major licensing deals and talent acquisitions were prevalent among tech giants like Google and Microsoft.

Despite the dominance of U.S. startups in attracting investment, significant funds also reached international firms such as Moonshot AI in Beijing and DeepL in Cologne. The trend of heavy investment in generative AI infrastructure suggests a sustained demand for advanced data centers.

Javaheri hints at a potential market saturation with numerous startups entering similar sectors, raising concerns about the long-term sustainability and the escalating need for substantial capital to lead in innovation. #

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