Investors Plough $27.1 Billion Into AI Startups Despite Economic Struggles
Related media - Breaking news
In May, CoreWeave, a provider of cloud computing services for AI companies, raised $1.1 billion, followed by $7.5 billion in debt, reaching a valuation of $19 billion. Scale AI, a data provider for AI companies, secured $1 billion, at a valuation of $13.8 billion. Additionally, xAI, founded by Elon Musk, raised $6 billion, reaching a valuation of $24 billion.
According to Kyle Stanford, research analyst at PitchBook, these funding rounds have increased overall deal volume in the industry, both in terms of dollar amounts and number of deals.
"It's not declining anymore," he said. "The bottom has already fallen out."
The surge in activity has prompted some venture capitalists to revise their outlook. Last year, IVP investor Tom Loverro predicted a...