AI Investments Rise 47% in US Venture Capital Funding—Highest Level Recorded in 2 Years
By Jace Dela Cruz
Jul 04, 2024 11:26 AM EDT
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Jul 04, 2024 11:26 AM EDT
US venture capital funding has climbed to $55.6 billion in the second quarter, marking the highest level in two years, according to PitchBook data.
Reuters reported that this increase represents a 47% jump from the $37.8 billion raised in the first quarter, primarily driven by large investments in artificial intelligence companies.
Major funding rounds included $6 billion for Elon Musk's xAI and $1.1 billion for CoreWeave. The enthusiasm for AI technology has spurred renewed interest in venture capital, with investors optimistic about the potential returns from AI advancements.
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However, funding increases have not eased the harsh conditions for business exits. According to Reuters, smaller deals generated $23.6 billion in the second quarter, down from $37.8 billion in the first quarter.
The IPO market is also facing challenges, even with companies like Rubrik going public. Emerging venture capital fund managers are under strain, securing only $37.4 billion in commitments in the first half of the year, while larger firms continue to lead the fundraising efforts.
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