AI Startups Fuel Record US Venture Capital Surge in 2024
In Q4 2024, AI startups led a record surge in U.S. venture capital, attracting nearly half of all funding as investors increasingly bet on AI innovations.
Published on April 7, 2025
In the fourth quarter of 2024, AI startups once again emerged as the powerhouse sector in U.S. venture capital. Investors poured funding into these companies, which accounted for nearly half of all startup investments during the quarter. The record surge reflects a renewed investor confidence and a marked shift toward AI technologies.
Supplemental reports from Financial Times and others highlighted marquee deals that bolstered this trend. Notably, on December 18, 2024, Databricks secured a $10 billion investment, propelling its valuation to $62 billion, while Vultr raised $333 million to expand its data centres. Data from Crunchbase News and KPMG further cemented that AI-driven investments dominated the quarter, with one report noting that AI companies accounted for 62% of all startup funding. These developments underscore the sustained momentum in the AI VC landscape as the year came to a close.