CB Insights – State of AI, Q1 2024

In the first quarter of 2024, global AI funding reached $13.1 billion, a significant 24% increase from the previous quarter, surpassing the growth in broader venture funding. Despite this, the number of AI deals decreased for the fourth consecutive quarter, hitting their lowest count since 2018. The average deal size in 2024 increased by 21% compared to 2023. Two generative AI infrastructure players, Anthropic and Moonshot AI, raised massive $1 billion-plus deals, contributing to the overall upward trend. Six new AI unicorns, private companies valued at $1 billion or more, were born in Q1’24, including Moonshot AI, Together AI, and Krutrim. M&A exits for AI companies decreased by 36% compared to the previous quarter. In terms of regional trends, the US saw a significant increase in AI funding by 52% QoQ, while Asia was the only other major region to experience a funding increase (+6%). Europe saw a rise in global exits, while Asia saw a decline, and the US’s share remained steady at 41%.