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.

US Venture Capital Funding Gets Significant Boost From AI Investments

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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Tough Conditions for Business Exits

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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