European startups received simply $1bn of the €22bn that VCs have invested in generative AI since 2019, in keeping with knowledge from Dealroom.
Unsurprisingly, American corporations attracted the majority of the cash. A whopping $20bn — 89% of the worldwide complete — went to US startups. Their Asian counterparts raised solely $790mn, whereas the remainder of the world mixed bagged simply $454mn. Dealroom’s knowledge assortment ended on July 10, 2023.
US startups have raised 89% of worldwide GenAI funding 😳
Within the final decade, enterprise capital has gone world. Greater than half of VC funding is now raised exterior the US. Not so in Generative AI.
— Dealroom.co (@dealroomco) September 11, 2023
The US dominance is partly defined by the rise of OpenAI. The corporate has been a VC darling because the launch of ChatGPT, which sparked the generative AI growth. Enterprise capitalists ploughed practically $12bn into the San Francisco-based firm.
OpenAI can also be the main title in Dealroom’s mannequin maker phase, which accounts for over 60% of the entire VC funding for GenAI. Different massive gamers within the subject embody Anthropic, Adept AI, Inflection AI, and Aleph Alpha. The following most funded segments are functions and infrastructure.
The Bay Space, the place OpenAI is predicated, has turn into the epicentre of generative AI. VCs funnelled over $18bn into startups within the area. The following main cities within the sector had been New York ($676mn) and Tel Aviv ($433mn).
Exterior of the highest three, the panorama is rather a lot brighter for Europe.
London took fourth place within the rankings. GenAI startups within the UK capital raised round $36mn, led by the $101mn funding in Stability AI, which makes the Secure Diffusion text-to-image mannequin. Three European cities rounded out the highest 10: Berlin ($141mn), Amsterdam ($238mn), and Stockholm ($100mn).