In 2023, AI startups raised $20 billion, and they continue to do so today

As more entrepreneurs and investors continue to get on board and get in on the trend, the artificial intelligence (AI) boom reaches new heights, as statistics indicates that investors have put $20 Billion into AI firms alone since the year began.

Startups in AI Attract Record Investments

Companies from a variety of industries want to be a part of the buzz surrounding AI as they rethink their business models to include the rapidly evolving technology. Additionally, more business owners are starting AI-related enterprises as a result of investors’ expressed interest in the technology.

According to a Crunchbase review of AI startups this year, venture firms will have invested over $20 billion in these businesses by 2023, and it is expected that considerably more money will be invested in AI startups going forward.

Four former Google AI researchers founded one such business, Mobius AI. In order to co-found a business, Jonathan Ho, William Chan, Chitwan Saharia, and Mohammad Norouzi all departed the IT behemoth. They had no clue what they would sell other from the knowledge that the business would produce its own photographs and films.

But in a week, the business had caught the eye of two significant Silicon Valley venture capital companies, Andreessen Horowitz and Index Ventures, who came in with an offer of money. With only two weeks old and no product, the firm quickly reached a $100 million valuation.

More investors entered despite the peculiar growth to increase their financial support for the four-person team. Similar startup tales may be found for several other businesses, as investors vie for stakes in as many AI startups as they can. and Anthropic, who early last week secured a combined $700 million in their most recent fundraising rounds, are two recent businesses that have benefited from this investment frenzy.

Anthropic, a rival to ChatGPT, raised $450 million in Series C investment, led by Spark Capital with participation from Google, Salesforce Ventures, Sound Ventures, Zoom Ventures, and other investors.

The agreement comes in the wake of prior rumors from February claiming that Google had contributed between $300 million and $400 million to the business that created the AI Assistant Claude. Anthropic is distinguished by Claude. It can support up to 100,000 tokens, which means that it can store more than 10 times as much text in memory than ChatGPT’s GPT-4.

Anthropic was reportedly gathering an additional $300 million at a pre-investment valuation of $4.1 billion in March, according to other reports.

A London-based company called, on the other hand, received more than $250 million in a Series D investment supported by the Qatar Investment Authority. The company’s valuation increased by 1.8 times thanks to the extra investors, including Iconiq Capital, Jungle Ventures, and Insight Partners.

A day after Anthropic and, Insider, an AI marketing platform with a basis in Turkey, also acquired $105 million. Qatar Investment Authority, the Series D leader of, who is obviously not going to be left behind in this investment race, took the lead in the round.

Investors have yet to realize gains

The public markets might not be as interested in a sector simply because it is trending if it isn’t doing as well as anticipated, despite the billions invested in the AI domain.

Focusing on AI does not guarantee stock market success, according to an examination of the performance of well-known businesses with an AI focus that went public in the quarters before the market peak.

The majority of firms that went public are today valued at around 25% of their IPO valuation, demonstrating that investors have not yet reaped the benefits of the significant investments they have made and are still making in technology.

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