In recent years, there has been a rapid expansion of artificial intelligence (AI) technology, leading to a surge in the establishment of AI startups worldwide. Data from Quid, as highlighted in the 2024 AI Index Report from Stanford, illustrates the top 15 countries at the forefront of AI startup activity over the past decade.
The visual representation showcases the number of newly funded AI startups between 2013 and 2023, with a focus on startups receiving over $1.5 million in private investment. The United States has emerged as the leader with 5509 newly funded AI startups, followed by China with 1446, and the United Kingdom with 727. Rounding out the top five are Israel with 442 and Canada with 397 newly funded AI startups.
Further analysis reveals that the U.S. has significantly outpaced other countries in private AI investment, amassing a remarkable $335 billion from 2013 to 2023. This is substantially higher than China’s $104 billion and the UK’s $22 billion in the same timeframe. In 2023, the U.S. widened this gap even further, with private investment growing by 22%, while China and the UK experienced declines in private investment (-44% and -14.1% respectively).
Taking a deeper dive, it is evident that AI infrastructure, research, and governance are the primary recipients of total private AI investment, signaling the key areas attracting the most funding. Natural language processing (NLP) is the second-largest focus area, with $8 billion invested in 2023 alone. NLP holds significant potential for transforming various industries, particularly financial services, where it can drive customer support chatbots and automated wealth advisors.
Another visualization demonstrates the substantial grants awarded to prominent companies through the U.S. CHIPS Act. Notably, Intel received $8.5 billion in grants, TSMC secured $6.6 billion, and Samsung was granted $6.4 billion, among others. Intel is set to invest $100 billion for new fabs in Arizona and Ohio, while TSMC plans to invest $65 billion for a new chip plant featuring three fabs in Arizona. Micron, the sole U.S.-based manufacturer of memory chips, is also slated to receive $6.1 billion to support its investment plans of $50 billion through 2030 for the construction of new fabs in Idaho and New York.
The visual representations offer insight into the widespread global presence of AI startups over the past decade and the significant investments being made in chip production across the United States. This data serves as a compelling testament to the ever-expanding landscape of AI and its implications on the global technology and manufacturing sectors.