AI Investment Surges in Q2 2017: VC Funding Hits Record Highs
The first half of 2017 has witnessed a remarkable influx of investment into the AI and machine learning space. A significant portion of this investment went to two companies: Argo AI, a self-driving car technology developer, and SenseTime, a Chinese company developing deep learning applications for facial recognition and image processing. Beyond these two, at least 28 AI and machine learning companies closed funding rounds of $20 million or more, and nearly 250 companies disclosed funding investments this year.
This trend extends beyond venture capital. Large companies are also heavily investing in AI, both internally and through acquisitions. Google, Toyota, and Microsoft have all launched AI-focused corporate venture funds, and major tech companies like Apple, Cisco, and Airbnb have been actively acquiring promising AI startups.
While the AI sector is experiencing a boom, quantifying the investment is a challenge due to the diverse nature of AI-related technologies. Some companies identify solely as AI firms, while others use AI as a core technology within broader fields like security or marketing analytics.
Despite the complexities of measurement, the overall trend is undeniable: AI investment is booming. This is evidenced by increased startup funding, growing M&A activity, and the influx of capital from both traditional VCs and large corporations.
