San Francisco is the epicenter for artificial intelligence
More than 50 percent of all global venture funding for AI-related start-ups went to companies headquartered in the Bay Area in 2023.
Where is the epicenter for artificial intelligence (AI)? Well, as you might imagine, it is in San Francisco.
Gené Teare writes in this recent article for Crunchbase News that funding data, as well as interviews with start-up investors and real estate industry professionals, show the San Francisco Bay Area has become the undisputed epicenter of AI.
Last year, more than 50 percent of all global venture funding for AI-related start-ups went to companies headquartered in the Bay Area, Crunchbase data shows, as a cluster of talent congregates in the region. In fact, AI-related companies based in the Bay Area raised more than $27 billion in 2023, up from $14 billion in 2022, when the region’s companies raised 29 percent of all AI funding.
“From a deal count perspective, Bay Area companies raised 17 percent of global rounds in this sector in 2023 — making the region the leading metro area in the U.S.,” Teare wrote. That number was an increase of more than 13 percent compared to 2022. The figure, which is more than a third of AI deal counts in the U.S., means the Bay Area alone had more AI-related start-up funding deals than all countries outside of the U.S.
One has to look no farther than the graduates of 500 Global in March and Y Combinator’s April batch. According to the article, 60 and 50 percent of those participants, respectively, were in AI, and the number is closer to 80 percent for the next 500 Global cohort.
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