Solely 5% of $22B in VC funding for generative AI went to Europe

European startups obtained simply $1bn of the €22bn that VCs have invested in generative AI since 2019, based on information from Dealroom.

Unsurprisingly, American firms attracted the majority of the cash. A whopping $20bn — 89% of the worldwide complete — went to US startups. Their Asian counterparts raised solely $790mn, whereas the remainder of the world mixed bagged simply $454mn. Dealroom’s information assortment ended on July 10, 2023.

US startups have raised 89% of worldwide GenAI funding 😳

Within the final decade, enterprise capital has gone world. Greater than half of VC funding is now raised exterior the US. Not so in Generative AI.

VC x GenAI: the definitive information, in numbers.https://t.co/BTn4r9DiSK pic.twitter.com/snFXDR8Cg7

— Dealroom.co (@dealroomco) September 11, 2023

The US dominance is partly defined by the rise of OpenAI. The corporate has been a VC darling because the launch of ChatGPT, which sparked the generative AI increase. Enterprise capitalists ploughed practically $12bn into the San Francisco-based firm.

OpenAI can also be the main title in Dealroom’s mannequin maker phase, which accounts for over 60% of the whole VC funding for GenAI. Different huge gamers within the discipline embrace Anthropic, Adept AI, Inflection AI, and Aleph Alpha. The following most funded segments are purposes and infrastructure.

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The Bay Space, the place OpenAI is predicated, has change into the epicentre of generative AI. VCs funnelled over $18bn into startups within the area. The following main cities within the sector have been New York ($676mn) and Tel Aviv ($433mn).

Outdoors of the highest three, the panorama is so much brighter for Europe.

London took fourth place within the rankings. GenAI startups within the UK capital raised round $36mn, led by the $101mn funding in Stability AI, which makes the Secure Diffusion text-to-image mannequin. Three European cities rounded out the highest 10: Berlin ($141mn), Amsterdam ($238mn), and Stockholm ($100mn).