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 knowledge from Dealroom.

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

The US dominance is partly defined by the rise of OpenAI. The corporate has been a VC darling for the reason that launch of ChatGPT, which sparked the generative AI growth. Enterprise capitalists ploughed almost $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 large gamers within the subject embrace Anthropic, Adept AI, Inflection AI, and Aleph Alpha. The following most funded segments are purposes and infrastructure.

Pie chart of the three biggest GenAI segments

The Bay Space, the place OpenAI relies, has develop 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 rather a lot 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 Steady Diffusion text-to-image mannequin. Three European cities rounded out the highest 10: Berlin ($141mn), Amsterdam ($238mn), and Stockholm ($100mn).