VC Funding Floods AI Startups with $58B in 2023; Europe Gets $11B Slice
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VCs invested $58.3B in AI startups in 2023, with Europe's share at $11.1B. High profile rounds went to Mistral, Aleph Alpha, ElevenLabs.
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In 2024, expect more investment in industry-specific AI solving problems in sectors like healthcare and manufacturing.
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Funding for general purpose "foundational" AI models will likely dry up as hype subsides and big investors drop out.
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Tighter regulations like the EU's AI Act will push startups towards more ethical, transparent AI or open source models.
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Demand for open source AI will increase as enterprises seek more control, transparency and privacy around AI tools.