VC funding of AI startups fell from $29.6 billion in Q2 to $11.8 billion in Q3, says Stocklytics.com.

The total number of deals dropped by 28% y-o-y to 79 in Q3 2024, down from 110 in Q3 2023.

For the year to date, $53 billion on fresh capital in the AI sector has been invested – 35% more than in all of  2023 – and more than 2021’s $49?4 billion which was the record year for VC investment in AI, according to Crunchbase.

Huge q-o-q drop in Q3 AI VC funding

With this year’s $53 billion, the cumulative funding amount in the AI sector has jumped to over $241 billion.

US companies raised almost 65% of that – $155 billion – with California as the leading hub.

Asian AI startups have raised $53 billion so far this year while European AI startups have raised  $30.2 billion,