Private equity/venture capital funding in generative AI companies nearly doubles

Globally, private equity and venture capital funding for generative artificial intelligence companies grew to $56.7 billion last year, a better than 94% increase compared with 2023. Investments totaled $3.4 billion in 2020.

Private equity and venture capital investments in generative AI infrastructure companies (e.g., semiconductor manufacturers, graphic processing unit cloud providers and software developers) grew rapidly last year. Funding for these types of companies rose to about $26 billion in 2024 compared with $2.6 billion and $6.9 billion in 2022 and 2023, respectively. Investments totaled $2.5 billion in 2020.

Generative AI application companies (e.g., foundation models or models that produce output, text-to-speech, and various industries such as finance and education) saw investments increase to $30.7 billion in 2024 vs. $909 million in 2020.