AI startups drove a record surge in U.S. venture capital in Q4, securing nearly half of all funding in 2024 as investors flock to the booming sector.

Artificial intelligence startups have contributed significantly to the recovery of U.S. venture capital funding from market lows, with the total capital raised in 2024 nearly 30% higher year-on-year,

Venture capitalists put $97 billion into artificial intelligence startups in the US last year — a new record in a year of multibillion-dollar megarounds for companies like Elon Musk’s xAI, OpenAI and Anthropic.

AI start-up investments in 2024 were even greater than the banner 2021 financing rounds, and up over 80% on the year.

Global venture funding in 2024 edged above 2023’s totals, with AI showing the biggest leap in amounts year to year. Overall startup funding in 2024 reached close to $314 billion — compared to $304 billion in 2023 — up around 3%,

AI startups in the United States raked in an unprecedented $97 billion in funding last year. That’s nearly half of the $209 billion raised by all US startups in 2024. It’s a big number—biggest ever—and it’s no surprise when you consider the names driving it: xAI,