10 AI startups that raised over $100M in 2024

AI fatigue is real for most of us, but apparently not for venture investors. Did you know that in 2022 alone, AI startups attracted $47 billion in private-sector funding? That’s even more astonishing when you consider that in just the first six months of 2024, a staggering $35.5 billion was poured into AI startups. To put that in perspective, that’s about 93% of Estonia’s GDP in 2022 or 26% of Bill Gates’ net worth in 2024. AI Ventures Overhyped? So, here are the top 10 AI startups that raised over $100M in 2024.

A sneak peek at AI startup funding stages

Recent Crunchbase data found that five of the six venture rounds of more than $1 billion raised in the first half of 2024 were led by AI companies. Many other AI startups managed to raise mega-rounds of more than $100 million. U.S. startups raised two of the billion-dollar rounds in the first half of this year and nearly two-thirds, or 64%, of the mega-rounds.

To give you a little perspective about startups, they grow in different stages:

• Pre-seed: Initial funding to develop a business idea.
• Seed: Early funding to develop a prototype and early product.
• Series A: Funding to scale the product and acquire more customers.
• Series B: Expansion funding to grow the business and market reach.
• Series C: Late-stage funding for scaling operations and market presence.
• Series D : An optional additional stage of funding to prepare for IPO
• IPO: Initial Public Offering aka IPO, is where companies issue new stocks to the public. 

Top 10 AI Startups by Funding

Here are a few U.S.-based AI companies that raised $100 million or more so far in 2024:

No. 10: EvolutionaryScale – $142 million

First up, we have New York-based EvolutionaryScale is developing biological AI models for therapeutic design. It raised a $142 million seed round. They raised $142 million, showcasing the growing interest in combining biology with AI to create groundbreaking innovations in healthcare and beyond.

No. 9: Cognition – $175 million

Next, at number 9 is Cognition. applied AI lab startup Cognition’s $175 million round,  The company was founded in November 2023 and is already valued at nearly $2 billion. While details are scarce, their substantial backing indicates significant potential in their AI advancements.

No. 8: Skild AI – $300 million

At number 8, we have Skild AI, which focuses on robotics. They’ve raised $300 million, aiming to revolutionize the robotics industry with advanced AI capabilities.

No. 7: Lambda – $320 million

Number 7 on our list is Lambda, a company specializing in deep learning infrastructure. With $320 million in funding, they are positioned to enhance the tools and platforms that power AI research and applications.

No. 6: AlphaSense – $650 million

Moving on to number 6, we have AlphaSense, a market intelligence platform. They raised $650 million. By the name, you can tell they focus on providing critical insights and analytics to businesses, helping them make informed decisions. Think of it as the AdSense of the AI world, but for market intelligence.

No. 5: Figure – $675 million

At number 5 is Figure, an AGI robotics company powered by OpenAI. They raised $675 million, and their technology is backed by giants like OpenAI, Microsoft, and NVIDIA. Their goal? To create advanced general intelligence in robotics, pushing the boundaries of what’s possible.

The Billion-Dollar Club

Now, things get out of hand. The next few companies have raised over a billion dollars each!

No. 4: Xaira Therapeutics – $1 billion

At number 4, we have Xaira Therapeutics, which focuses on therapeutic AI. They secured $1 billion to develop AI-driven solutions that can transform the medical field, from drug discovery to personalized treatment plans.

No. 3: Scale AI – $1 billion

Number 3 is Scale AI, known for its AI labeling services. They also raised $1 billion. Their technology is crucial for training AI models, providing high-quality labeled data to improve accuracy and performance.

No. 2: CoreWeave – $1.1 billion

At number 2, we have CoreWeave, a company specializing in GPU infrastructure. They raised $1.1 billion, emphasizing the growing demand for powerful computing resources to support AI research and deployment.

I know ! Your question must be: So, who takes the top spot?

No. 1: xAI by Elon Musk – $6 billion

You guessed it. The number 1 spot goes to xAI, founded by none other than Elon Musk. They raised a jaw-dropping $6 billion. 

xAI aims to build an AI platform that will “accelerate human scientific discovery.“ Given Musk’s track record, the hype is understandable. However, let’s hope this venture doesn’t turn into another X, the everything app Musk has been teasing.

Why So Much Investment?

You might wonder why investors are pouring so much money into AI. Let’s break it down.

Since 2013, America has been pouring nearly $250 billion into 4,643 AI ventures. So, we’re talking about serious profit possibilities here. The big question is, is putting money into AI startups worth it? Well, the numbers suggest a big potential payoff! 

Generative AI revenue from 14 billion U.S. dollars in 2020 to nearly 900 billion U.S. dollars in 2023. It is expected to rise significantly, with a forecast of more than 1.3 trillion U.S. dollars in 2032. The AI landscape is evolving at a rapid pace, and the future looks incredibly promising.  

In a striking revelation, the AI market size in 2030 will grow to approximately eight times its 2023 size.

1. Potential for Disruption: AI has the potential to disrupt virtually every industry. From healthcare to finance to transportation, AI technologies can streamline processes, reduce costs, and create new opportunities.
2. Scalability: AI solutions, once developed, can be scaled rapidly. This scalability means that successful AI startups can grow exponentially, providing significant returns on investment.
3. Technological Advancements: Recent advancements in machine learning, deep learning, and neural networks have made AI more powerful and versatile. This progress fuels investor confidence that AI can solve complex problems.
4. Strategic Importance: For tech giants and governments, leading in AI is strategically important. It can provide a competitive edge in various sectors, from defense to economic development.

I actually worked on a video about some fun facts that I discovered about AI startups funding situation in 2023 : 

Are AI Ventures Overhyped?

If you think about those massive investments. It would feel natural to ask: Are AI ventures overhyped? Let’s consider a few points.

1. Market Realities: While AI holds tremendous promise, not all AI startups will succeed. Many may fail to deliver on their promises, leading to significant losses for investors. However, this is a common risk in venture capital, where the few successful ventures often compensate for numerous failures.
2. Hype vs. Substance: The AI field is filled with buzzwords and lofty claims. It’s crucial to differentiate between genuine innovation and marketing hype. Investors must conduct thorough due diligence to identify startups with real potential and avoid those merely riding the AI wave.
3. Ethical and Societal Implications: As AI technologies become more pervasive, ethical considerations and societal impacts come to the forefront. Issues like data privacy, algorithmic bias, and job displacement need careful management. Startups addressing these concerns responsibly may gain more trust and support.

So, are AI ventures overhyped? To me: the answer is both yes and no. The hype is justified to some extent, but AI’s pretty much the real deal in the tech industry, and it has great transformative potential. However, it’s essential to approach AI investments with a critical eye, separating genuine innovation from empty promises when it comes to jumping into an AI venture. 

The Future of AI Ventures

Looking ahead, the future of AI ventures appears promising but challenging. Personally, I would like to share insights about some of the most popular trends in this area : 

1. AI Regulation: Governments worldwide are beginning to draft regulations to govern AI development and deployment. These regulations could impact how startups operate and scale.
2. AI in Everyday Life: Expect to see AI integrated into more everyday applications, from smart home devices to personal assistants. The convenience and efficiency AI offers will drive its adoption across various domains.
3. Collaborative AI: Collaborative AI systems, where AI works alongside humans to augment their capabilities, will become more prevalent. This synergy can enhance productivity and creativity in the workplace.
4. AI Democratization: Efforts to democratize AI, making it accessible to smaller companies and individual developers, will continue. Open-source AI frameworks and affordable computing resources will play a crucial role.
5. Sustainable AI: Sustainability will be a key focus. Developing energy-efficient AI models and minimizing the environmental impact of AI operations will gain importance.

Also responsible AI and security & privacy are important aspects, so I hope Investors, entrepreneurs, and developers could work together to harness AI’s power responsibly. By doing so, they can create technologies that not only drive economic growth but also make a positive impact on the world.

Looking forward

Startup raising funding is a great support for further development, and it helps valuations. However, a great funding source doesn’t always mean that the startup valuation is high. So, you can check out this post to learn more about the top 8 startups that value more than 1 billion dollars in 2024. By the way, if you enjoy similar topics, you may also want to learn more about the most disruptive AI startups in 2024, you can follow me here on Medium or sign up for my newsletter. I have lots of content about AI startups to come because I’m really passionate about this topic, and I’m writing weekly to train my tech entrepreneurship muscle! Leave your thoughts in the comments below. I’m curious about this: Do you think AI ventures are overhyped? Stay tuned, and see you in the next one!