Doubling the fund invested in the first quarter on AI startups, investors put in $24 billion in the ever-changing industry. AI investments represented 30% of the total dollars invested in the quarter.
The $24 billion investment represents the largest quarterly AI investment in recent memory, despite investors’ concerns over the actual value AI can bring to clients and consumers given their exorbitant valuations.
During the quarter, AI startups received funding in five out of six rounds totaling billions of dollars. CoreWeave, a cloud service provider with an AI focus, has raised an extra $1.1 billion and obtained $7.5 million in debt financing. xAI, Elon Musk’s AI startup, brought in an extra $6 million. The AI data startup Scale AI successfully funded $1 billion in May. Wayve, a British automated driving startup, raised slightly more than $1 billion from Nvidia and other investors.
It is in this quarter that AI has attracted much investment after the advent of ChatGPT in late 2022, Crunchbase finds. “While this past quarter was amongst the highest for funding since Q1 2023, it is not necessarily a signal of a venture market comeback,” Crunchbase analysts write in the report. “Since 2023, funding has fluctuated quarter by quarter based on an increase in large growth rounds to pre-IPO companies and to companies in the AI sector–this past quarter is no exception.”