AI, cloud funding in US, Europe to hit $79b in 2024

STOCKHOLM, Oct 16 (Reuters): Funding of artificial intelligence and cloud companies in the US, Europe and Israel is rising after three years of decline and is estimated to hit $79.2 billion by the end of the year, venture capital firm Accel said in a report, opens new tab on Wednesday.

That is a 27 per cent increase over 2023's $62.5 billion, and investments involving generative AI companies represent about 40 per cent of the 2024 figure.

"The tectonic shift we are seeing with AI right now is bigger than anything that we have seen in the past, be it broadband or mobile or cloud," Philippe Botteri, a partner at Accel, said in an interview.

Of the $56 billion invested in generative AI in 2023 and 2024 combined, about 80 per cent has gone into US companies versus 20 per cent for Europe and Israel. Two-thirds of the AI funding, or $37 billion, has been invested into companies building foundation models, Accel said.