Growing at a CAGR of 38 per cent between now and 2030, the artificial intelligence sector’s value will exceed the $135 billion mark in 2022, according to analysts
Artificial intelligence’s (AI) total private investment, in 2021, more than doubled to reach $93.5 billion globally, a new report has shown.
Growing at a CAGR of 38 per cent between now and 2030, the artificial intelligence sector’s value will exceed the $135 billion mark in 2022, according to analysts.
“2021 was especially exciting because it saw many new faces coming into the market. Only four funding rounds worth $500 million or more made it to the market in 2020, contrasting with the 15 that did so in 2021,” said Jonathan Merry, CEO of MoneyTransfers.com which did the analysis.
Down to 762 in 2020 from 1,051 in 2019, there were 746 freshly funded AI companies in 2021.
Since 2017, the total amount of funding raised by venture capitalists (VCs) for Artificial intelligence start-ups has increased significantly.
“It’s clear that private investors want to invest heavily in AI – but only as long as they see a real return on their investment. With that in mind, it’s important for founders looking for seed funding to consider what kind of value investors expect from their investment,” the analysts said.
The US and China lead in private investments in the field.
The US, by the end of 2020, had invested over $23 billion in private investments in the sector more than twice the $9.9 billion that China invested.
However, China, targeting to grow its market share to $150 billion, has set its sights on becoming the world’s Artificial intelligence innovation hub.
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