Top 10 biggest AI startup funding 2024 in USA

In 2024, AI startups in the USA attracted unprecedented investor interest, with billions of dollars flowing into companies focused on practical applications of artificial intelligence. These funding rounds highlight the increasing reliance on AI to address challenges across industries, from data processing and automation to healthcare and robotics.

As valuations soared, these startups secured significant backing to accelerate their growth, expand their offerings, and solidify their positions in an evolving and competitive landscape. Here’s a look at the most significant funding rounds that shaped the AI sector this year.

Databricks raised $10 billion at a $62 billion valuation in December 2024, marking the largest venture capital raise of the year and one of the largest on record. This represents a 44% increase from its 2023 valuation of $43 billion. The round was led by Thrive Capital, with participation from Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management, along with existing investors such as Ontario Teachers’ Pension Plan and new backers like Iconiq Growth and Wellington Management. The company, which helps businesses process and analyze large datasets using AI and machine learning, plans to use the funds to develop new AI products, make acquisitions, expand internationally, and provide liquidity for current and former employees. Databricks reported a 60% year-over-year revenue growth and expects to hit a $3 billion revenue run-rate. CEO and co-founder Ali Ghodsi emphasized the long-term value of their Data Intelligence Platform and the company’s commitment to helping customers across industries build data intelligence.

OpenAI has secured $6.6 billion in October funding from a mix of venture capital investors, including Thrive Capital and Khosla Ventures, as well as corporate support from Microsoft and a new investment from Nvidia. The latest round also saw participation from Abu Dhabi’s MGX global investment fund, along with Altimeter Capital, Fidelity, and Softbank. Since the public release of ChatGPT, OpenAI has reached 250 million weekly active users, and its valuation has surged from $14 billion in 2021 to $157 billion in 2024. This funding comes amid executive changes, including the departure of Chief Technology Officer Mira Murati. OpenAI is expected to generate $3.7 billion in revenue this year, with projections reaching $11.6 billion by 2025.

Elon Musk’s xAI has raised $6 billion in a funding round that values the AI startup at over $40 billion, according to a regulatory filing. Musk founded xAI in 2023 and has been aggressively raising capital since, with a previous $6 billion round in May that valued the company at $24 billion. Key investors in xAI include Sequoia Capital, Andreessen Horowitz, and others who also back Musk’s X and other ventures. A portion of the new funds has been allocated to xAI’s supercomputer facility in Memphis, which opened earlier this year and has been described as the largest multibillion-dollar investment in the city’s history. The facility is also attracting major tech companies like Nvidia, Dell Technologies, and Super Micro Computer. Additionally, xAI has launched its AI chatbot, Grok, to all X platform users, competing directly with OpenAI’s ChatGPT, Google’s Gemini, Meta’s Meta AI, and Microsoft’s Copilot. Grok offers free users up to 10 messages every two hours, with premium subscribers receiving additional benefits.

Waymo, the autonomous vehicle venture owned by Alphabet, raised $5.6 billion in a Series C funding round in October 2024 to expand its robotaxi service in cities including Los Angeles, San Francisco, Phoenix, Austin, and Atlanta. Co-founded by Tekedra Mawakana and Dmitri Dolgov, Waymo’s total funding now exceeds $11 billion, with this round bringing in investors such as Alphabet, Andreessen Horowitz (a16z), Fidelity, Perry Creek, Silver Lake, Tiger Global, and T. Rowe Price. The funding will support the growth of its Waymo One ride-hailing service and the development of its autonomous driving technology for business applications.

In August 2024, Anduril Industries secured $1.5 billion in its Series F funding round, valued at $14 billion, to accelerate hyperscale defense manufacturing. Co-founded by Palmer Luckey, Brian Schimpf, and Matt Grimm, the round was co-led by Founders Fund and Sands Capital, with participation from new investors such as Fidelity Management & Research Company, Counterpoint Global, and Baillie Gifford, alongside existing backers like Altimeter and Franklin Venture Partners. The funding will support the expansion of Anduril’s manufacturing platform, Arsenal, to produce autonomous systems and weapons at scale, enhancing the company’s ability to meet the urgent defense needs of the U.S. and its allies.

CoreWeave, a leading specialized cloud provider for AI, announced it has secured $1.1 billion in new funding, led by Coatue with participation from Magnetar, Altimeter Capital, Fidelity Management & Research Company, and Lykos Global Management. The funding, revealed on May 1, 2024, will support the company’s rapid growth and expansion into new geographic regions to meet the increasing demand for GPU-accelerated cloud infrastructure. Co-founded by Mike Intrator, who also serves as CEO, CoreWeave will continue investing in AI infrastructure and working with the largest AI enterprises worldwide.

In May 2024, Scale AI, a provider of data-labeling services for machine learning, received $1 billion in a Series F round led by Accel, with participation from major investors like Amazon, Meta, and the venture arms of Cisco, Intel, AMD, and ServiceNow. This funding raised Scale AI’s valuation to $13.8 billion, up from $7 billion in 2021. Founded in 2016, the company combined machine learning with human oversight to manage large volumes of data, essential for training AI models, especially in industries such as autonomous vehicles. Despite challenges, including a 20% staff reduction, Scale AI continued to solidify its position in the AI data ecosystem.

Xaira Therapeutics raised $1 billion in funding in April 2024, incubated by Arch Venture Partners and Foresite Labs, with Marc Tessier-Lavigne, Ph.D., former chief scientific officer at Genentech, leading the company. The funding round also included F-Prime, NEA, Sequoia Capital, Lux Capital, and others. Based in the San Francisco Bay Area, Xaira combined machine learning, data generation, and therapeutic development for drug discovery. Co-founded by David Baker, Ph.D., from the University of Washington, Xaira utilized advanced models for protein and antibody design, alongside technologies spun out from Illumina and Interline Therapeutics. Tessier-Lavigne, who resigned as president of Stanford University after research misconduct allegations, was appointed to lead the new biotech venture.

Tenstorrent secured over $693 million in its Series D funding round at a pre-money valuation of $2 billion, led by Samsung Securities and AFW Partners. The round, which was oversubscribed, attracted notable investors such as XTX Markets, Corner Capital, LG Electronics, Hyundai Motor Group, and Bezos Expeditions. The funding was aimed at expanding open-source AI software stacks, growing global development centers, and building AI systems for developers. CEO Jim Keller highlighted investor enthusiasm for Tenstorrent’s open-source approach, emphasizing its appeal to developers seeking tools to customize their technology. The company’s focus on AI hardware, open-source software, and licensing RISC-V intellectual property distinguished it in the market.

Figure AI raised $675 million at a $2.6 billion valuation, attracting investments from Jeff Bezos, Nvidia, Microsoft, and Intel’s venture fund. The funding aimed to advance the development of Figure 01, a humanoid robot designed for roles in manufacturing, logistics, and retail. The company partnered with OpenAI to build next-generation AI models for humanoid robots and utilized Microsoft’s Azure cloud for AI infrastructure. The Figure 01 robot demonstrated capabilities such as walking on two legs and handling objects autonomously. Competing in a growing field, Figure AI joined efforts by companies like Tesla, Agility Robotics, and Boston Dynamics to revolutionize robotics in industries with labor shortages.

AlphaSense and Groq both made significant funding moves in 2024, coming close to the top 10 largest venture capital rounds of the year. AlphaSense, a New York-based market intelligence platform founded in 2008, raised $650 million in a Series F round led by Viking Global Investors and BDT & MSD Partners, with participation from CapitalG, SoftBank Vision Fund, and Goldman Sachs, valuing the company at $4 billion. Meanwhile, AI chip startup Groq secured a $640 million Series D round led by BlackRock, with backing from Type One Ventures, Verdure Capital Management, and Neuberger Berman, pushing its valuation to over $3 billion. Both rounds underscore the growing momentum in AI and analytics, placing them near the top-tier funding benchmarks for the year.