Posted: December 25, 2023 9:36 AM Updated: December 25, 2023 9:36 AM
Correction and fact check date: December 25, 2023, 9:36 AM
briefly
Here is a list of AI startups that have raised the most funding in 2023.
In 2023, artificial intelligence (AI) will play an important role. In the middle of the year, investors were particularly active, pouring nine-figure rounds into the most promising AI startups almost every week, making it difficult to keep track of all their investments.
But this compilation presents the ten most important deals of the year, each involving at least $500 million, and highlights the investors involved.
Anthropology, $4 billion
San Francisco-based Anthropic raised its largest funding round in September, signing a $4 billion investment deal with e-commerce and cloud giant Amazon. The deal also gives Amazon a minority stake in Anthropic, with an immediate investment of $1.25 billion and the option for either party to raise an additional $2.75 billion in financing.
Anthropology, $2 billion
Anthropic also received the second-largest investment of $2 billion from Google. This consists of $500 million upfront and an additional $1.5 billion over time. Previous reports from February suggested that Google had invested between $300 million and $400 million in the startup.
Inflection AI, $1.3 billion
Last summer, California-based Inflection AI raised a significant $1.3 billion in funding, led by Microsoft, Reid Hoffman, Bill Gates, Eric Schmidt and new investor Nvidia. The fundraising values Inflection AI at $4 billion, with the startup aiming to create “the world’s largest AI cluster” through its generative AI platform. It provides an AI-based assistant called Pi that allows users to get quick information and advice on areas of interest.
Metropolis, $1.1 billion
Los Angeles-based checkout-less parking startup Metropolis has raised $1.7 billion in debt and equity led by Eldridge and 3L Capital. The company raised $1.05 billion through a Series C offering and $650 million in debt financing. The funds facilitated the acquisition of logistics company SP Plus in a deal worth about $1.5 billion, marking the VC-backed company’s most significant M&A deal of the year.
Databricks, $685 million
Databricks, an AI-enhanced data analytics company, has raised more than $685 million in Series I through funds and accounts advised by T. Rowe Price Associates. The deal values the company at $43 billion, up from a $38 billion valuation following a $1.6 billion Series H in 2021. AI chip manufacturing company Nvidia also participated in this round.
Aleph Alpha, $500 million
Germany-based Aleph Alpha has raised a $500 million Series B as non-U.S. AI startups continue to raise significant funding. The round was led by companies from Innovation Park Artificial Intelligence, Bosch Ventures and Schwarz Group. Founded in 2019, Aleph Alpha helps companies develop and deploy large-scale languages and multimodal models.
SandboxAQ, $500 million
AI and quantum computing startup SandboxAQ announced a $500 million round led by Breyer Capital, Thomas Tull, T. Rowe Price Associates, Guggenheim Investments, and others. The startup explores the combined effects of AI and quantum to develop commercial products for telecommunications, financial services, healthcare, security, and other compute-intensive sectors.
Mistral AI, $487 million
French startup Mistral AI has raised a significant amount of investment, amounting to approximately $487 million at a valuation of $2 billion by the end of the year. The funding included about $350 million in equity from investors led by Andreessen Horowitz and contributions from General Catalyst, Lightspeed Venture Partners, Bpifrance, Nvidia and Salesforce.
Anthropology, $450 million
Anthropic raised $450 million in Series C funding led by Spark Capital last May.
In a recent development, the company announced plans to raise an additional $750 million in an upcoming funding round. The financing plan is reportedly being led by Menlo Ventures.
Corporate Giants leads the funding round.
The cumulative value of these 10 rounds exceeded $16 billion, demonstrating a significant influx of venture capital into the AI sector.
Microsoft led the largest round and co-led the second largest round, and Nvidia co-led the second largest round. Amazon led the third-largest round, while Google invested in Anthropic and Nvidia also participated in the Databricks round.
Enterprises have been a dominant player in AI investments, with Nvidia in particular succeeding with its high-demand chips, making it a more than $1 trillion company this year. In addition to being a publicly traded company, Nvidia has also participated in large AI rounds for other startups, including Together AI and Enfabrica, and has invested in several biotech companies using AI.
In 2023, AI startups experienced significant engagement and a surge in investment. Companies have played a pivotal role in investments, shaping the trajectory of technology and contributing to its growth. This year has been a transformative year for the AI sector.
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About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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