AI Startup Funding More than Doubles in Q2, Crunchbase Data Shows

Nao robots of the Nomadz team, programmed by the ETHZ and Insait Bulgaria, play a game of soccer during the AI for Good Global summit on artificial intelligence, organised by the International Telecommunication Union (ITU), in Geneva, Switzerland, May 30, 2024. REUTERS/Denis Balibouse/File photo Purchase Licensing Rights
Nao robots of the Nomadz team, programmed by the ETHZ and Insait Bulgaria, play a game of soccer during the AI for Good Global summit on artificial intelligence, organised by the International Telecommunication Union (ITU), in Geneva, Switzerland, May 30, 2024. REUTERS/Denis Balibouse/File photo Purchase Licensing Rights
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AI Startup Funding More than Doubles in Q2, Crunchbase Data Shows

Nao robots of the Nomadz team, programmed by the ETHZ and Insait Bulgaria, play a game of soccer during the AI for Good Global summit on artificial intelligence, organised by the International Telecommunication Union (ITU), in Geneva, Switzerland, May 30, 2024. REUTERS/Denis Balibouse/File photo Purchase Licensing Rights
Nao robots of the Nomadz team, programmed by the ETHZ and Insait Bulgaria, play a game of soccer during the AI for Good Global summit on artificial intelligence, organised by the International Telecommunication Union (ITU), in Geneva, Switzerland, May 30, 2024. REUTERS/Denis Balibouse/File photo Purchase Licensing Rights

Investments in artificial intelligence (AI) startups surged to $24 billion from April to June, more than doubling from the previous quarter, according to data from Crunchbase, highlighting the growing appetite for the new technology.

Overall startup funding grew 16% sequentially to touch $79 billion in the last quarter, primarily driven by investments in AI, which became the largest sector for the first time, followed by healthcare and biotech, Reuters reported.

The runway success of OpenAI's ChatGPT has unleashed a race to adopt the latest AI technology in areas such as business productivity, healthcare, and manufacturing. Investors and Big Tech firms, however, say that meaningful gains from their massive investments in AI will only materialize over the next few years.

Despite last quarter's uptick, startup funding remains low compared to the levels seen in the past three years.

Global funding declined 5% to $147 billion in the first half of the year and was flat compared to the second half of 2023, according to Crunchbase.

A tight monetary policy in the US has contributed to a slow revival in initial public offerings, hampering what is among the biggest sources of returns for institutional private market investors, who typically invest in startups and sell shares during IPOs.



Musk Activates Starlink Satellite Internet Service in Gaza Hospital

Analysts have doubts about Elon Musk's notion of relying on subscriptions instead of ads at Twitter Britta Pedersen POOL/AFP/File
Analysts have doubts about Elon Musk's notion of relying on subscriptions instead of ads at Twitter Britta Pedersen POOL/AFP/File
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Musk Activates Starlink Satellite Internet Service in Gaza Hospital

Analysts have doubts about Elon Musk's notion of relying on subscriptions instead of ads at Twitter Britta Pedersen POOL/AFP/File
Analysts have doubts about Elon Musk's notion of relying on subscriptions instead of ads at Twitter Britta Pedersen POOL/AFP/File

Elon Musk's Starlink satellite internet service has been activated in a hospital in the Gaza Strip, the SpaceX chief executive said.

"Starlink is now active in a Gaza hospital with the support of @UAEmediaoffice and @Israel," Musk posted on X, more than five months after the Israeli government approved Starlink's use in the hospital in the southern Gaza city of Rafah.

The high-speed internet will enable potentially life-saving medical consultations via real-time video calling, the UAE foreign ministry said in February.

Internet connectivity in Gaza is poor because of the lack of power and fuel to operate provider centers. This makes it harder for medical staff and rescue teams to work, and restricts hospital services and the health ministry's centralised system.