AI Stocks: The Capital-Raising Surge
AI Stocks: The Capital-Raising Surge
A third of VC funding globally went to AI startups in 2024. Clearly, AI stocks have caught the attention of investors. Which companies have been getting the most funding?
In this graphic from Citizens Bank, we explore investments into generative AI stocks.
A Breakdown of Generative AI Investments
From the start of 2023 to August 15, 2024, investors carried out deals totaling over $26 billion. This includes both strategic investors, like Microsoft’s investment in Inflection, as well as financial investors from private equity and venture capital firms.
We’ve focused on deals with companies leveraging generative AI, which is technology that uses human prompts to create new images, text, and other content from large data sets.
| Date | Deal Size | Company | Investor Type |
|---|---|---|---|
| 23/2/2023 | $350M | Adept | Financial |
| 7/3/2023 | $150M | Character.ai | Financial |
| 21/3/2023 | $60M | MindBridge | Financial |
| 13/4/2023 | $421M | CoreWeave | Financial |
| 20/4/2023 | $51M | Enveda Biosciences | Financial |
| 20/4/2023 | $97M | Replit | Financial |
| 27/4/2023 | $100M | Pinecone | Financial |
| 29/4/2023 | $300M¹ | OpenAI | Financial |
| 1/5/2023 | $51M | EvenUp | Financial |
| 23/5/2023 | $250M | Builder.ai | Financial |
| 31/5/2023 | $62M | Sana Labs | Financial |
| 2/6/2023 | $270M | Cohere | Financial |
| 12/6/2023 | $69M | Primer | Financial |
| 27/6/2023 | $50M | Warp.Dev | Financial |
| 27/6/2023 | $58M | Reka AI | Financial |
| 29/6/2023 | $141M | Typeface | Strategic |
| 29/6/2023 | $191M | Runway | Strategic |
| 29/6/2023 | $1.3B | Inflection | Strategic |
| 13/7/2023 | $54M | Descript | Strategic |
| 2/8/2023 | $50M | Inworld | Financial |
| 9/8/2023 | $50M | Weights & Biases | Financial |
| 17/8/2023 | $60M | Elemental Cognition | Financial |
| 24/8/2023 | $235M | Hugging Face | Strategic |
| 6/9/2023 | $110M | d-Matrix | Financial |
| 6/9/2023 | $273M | Generate Biomedicines | Strategic |
| 7/9/2023 | $100M | Inceptive | Financial |
| 7/9/2023 | $200M | Imbue | Strategic |
| 18/9/2023 | $100M | Writer | Financial |
| 27/10/2023 | $6.6B² | Anthropic | Strategic |
| 30/10/2023 | $52M | Essential AI | Financial |
| 2/11/2023 | $103M | together.ai | Financial |
| 13/11/2023 | $685M | Databricks | Financial |
| 24/11/2023 | $50M | AssemblyAI | Financial |
| 5/12/2023 | $432M | Mistral AI | Financial |
| 19/12/2023 | $80M | Harvey | Financial |
| 4/1/2024 | $74M | Perplexity | Financial |
| 9/1/2024 | $42M | Luma AI | Financial |
| 22/1/2024 | $80M | Eleven Labs | Financial |
| 6/2/2024 | $70M | Ambience AI | Financial |
| 16/2/2024 | $320M | Lambda | Financial |
| 22/2/2024 | $150M | Abridge | Financial |
| 26/2/2024 | $200M | Glean | Financial |
| 6/3/2024 | $63M | Perplexity | Strategic |
| 13/3/2024 | $106M | Together | Strategic |
| 23/3/2024 | $60M | HeyGen | Financial |
| 25/3/2024 | $50M | Hume | Financial |
| 1/5/2024 | $1.1B | CoreWeave | Financial |
| 15/5/2024 | $140M | WEKA | Financial |
| 21/5/2024 | $1.0B | Scale AI | Financial |
| 22/5/2024 | $300M | DeepL | Financial |
| 28/5/2024 | $6.0B | xAI | Financial |
| 31/5/2024 | $645M | Mistral AI_ | Financial |
| 4/6/2024 | $50M | Twelve Labs | Financial |
| 14/6/2024 | $125M | Sakana AI | Financial |
| 14/6/2024 | $174M | Enveda Biosciences | Financial |
| 20/6/2024 | $60M | HeyGen | Financial |
| 20/6/2024 | $400M | Poolside | Financial |
| 21/6/2024 | $102M | Stability AI | Financial |
| 25/6/2024 | $120M | Etched | Financial |
| 2/7/2024 | $800M³ | Lambda | Undisclosed |
| 8/7/2024 | $52M | Fireworks AI | Financial |
| 8/7/2024 | $130M | Hebbia | Financial |
| 10/7/2024 | $60M | Captions | Financial |
| 12/7/2024 | $300M | Groq | Financial |
| 23/7/2024 | $100M | Harvey | Financial |
¹Excludes the $10B investment from Microsoft announced in January 2023 as Microsoft is entitled to a share of OpenAI’s profits, but does not own an equity stake in the company. ²2023 cumulative investment, including $450M financing in May 2023, $100M in August 2023, $4B financing in September 2023 and $2B financing in October 2023. ³Lamba’s rumored $800M capital raise announced on July 2nd, 2024.
The largest cumulative investment across multiple deals was in Anthropic. The company is known for building the AI model Claude, one of the most popular generative AI tools. Following closely behind was a $6 billion investment in xAI, Elon Musk’s company. xAI has developed Grok, a model which uses data from the web and X (formerly Twitter) to create responses.
While the largest investments were in companies building foundational models, there are many companies focused on specific AI applications. For example, DeepL translates text instantly. Adept helps companies increase productivity by managing repetitive workflows like processing applications or checking shipping availability.
How AI Can Benefit Midsized Companies
What does all this investment and innovation in AI stocks mean for midsized companies? Technology can be leveraged in a number of ways.
According to exclusive research from Citizens Bank, CFOs at midsized companies say they use generative AI the most for predictive analytics and cybersecurity. Meanwhile, private equity firms are most likely to use the technology for customer service.
As the industry matures, midsized companies can pay attention to the trends and how their peers use generative AI. This will help position companies to improve processes and potentially lower costs.
Get exclusive research on generative AI from Citizens Bank.
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