Venture capitalists invested $97 billion in artificial intelligence startups in the United States last year, marking a new record. This investment surge occurred during a year characterized by multi-billion dollar funding rounds for companies such as Elon Musk's xAI, OpenAI, and Anthropic.
According to PitchBook data released on January 7, 2025, AI-focused deals constituted an increasing share of total startup investments. Nearly half of the $209 billion raised by U.S. startups in 2024 was directed toward AI companies, the highest proportion recorded.
The total funding for startups rose by approximately one-third compared to 2023. Meanwhile, venture capitalists raised $76.1 billion for 508 funds, the lowest number since 2014 and the smallest dollar amount since 2019.
The figures illustrate a persistent divide in venture capital, where established firms find it easier to secure funding, alongside some of the most prominent startups.
While investments in AI companies are increasing, many smaller startups in previously hot sectors, such as enterprise software, struggle to raise capital at once achievable valuations, reflecting a long-term trend in the post-pandemic industry.
Notably, a key metric for IPOs and startup acquisitions, known as exits, generated $149.2 billion last year, nearly $30 billion more than in 2023 and roughly equivalent to 2022.
In contrast, venture capital and startups outside the U.S. faced a tougher year. Startup funding in Europe fell to $61.6 billion in 2024, down from $66.7 billion in 2023, while deals in Asia decreased from $100.1 billion in 2023 to $75.9 billion.