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Another 6 Months passed in Gen AI. What's Happening, World?
Another 6 Months passed in Gen AI. What's Happening, World?

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Meta released Llama 3.1 with 405 Bn benchmark in early second half of 2024. Meta brought its first version in the 1st half of 2023. Multiple trends have shaped the Generative AI ecosystem since H12023. H12023 saw widespread adoption of conversational AI into mainstream through ChatGPT. We saw the rise of many Large Language Models coming one after the another. AI entered creative industries through text, image, video, audio etc. Similarly, multiple trends have defined the H12024 as well. While technology is unfolding fast, it is redefining the possibilities of tomorrow. Let us look at some of the developments in Generative AI at global scale.

1. 3X Increase in Generative AI Startup Investment Globally in H12024

The Global Gen AI investments increased from $ 5 Bn in H22023 to $ 15 Bn in H12024. While in period many startups that were founded in 2023 after the ChatGPT inception such as Mistral AI, 01.AI, Beijing Baichuan Intelligent Technology, XAI and Prins raised larger rounds that were greater than 100 Mn dollars. However, In H12024, GenAI startups such as Xai, Anthropic, Moonshot AI raised mammoth funding amounts even greater than 1 Bn Dollars. In the race of raising funds, foundational model startups outpaced all other segments in 2024.

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Source: Nasscom Generative AI Tracker: Tech Industry Activity

2. US dominates with almost 80% of the global funding in Gen AI in H12024.

In USA, more than 98 funding rounds were bigger than $ 100K IN H12023. While in H12024, the number of funding rounds in US increased by 50% and number of funding rounds more than $100k was 133. US remained the most dominated country in raising funds in generative AI. While, not just that, US also has an advantage in terms of number of Investors. Approximately 2/3 of total number of investors that took part in investing in Gen AI startups in the world were from United States.

3. 6 New Gen AI unicorns have been created Gen AI in 2024.

There are currently around 37 generative AI unicorns worldwide, according to data from CB Insights tallied by Nikkei. This represents an 85% increase from 20 generative AI unicorns at the end of April 2023. Generative AI companies now make up 60% of new unicorns, defined as startups valued at $1 billion or more. Generative AI startups are reaching unicorn status much faster than other types of startups, taking an average of just 3.6 years compared to 7 years for the unicorn club as a whole.

Generative AI represents a unique opportunity with immense potential. Our report, "Generative AI: Tech Industry Activity," explores all major trends of GenAI. The above trends are just the small part of the insights uncovered by the report. This comprehensive report captures Global Investment trends, India Investment trends and GenAI activity insights from the top 25 tech services companies in India. It also highlights four innovative companies that nasscom visited in the first half of 2024. Read the report and find the intriguing use cases and GenAI initiatives that these companies are unfolding.

Source: https://community.nasscom.in/communities/nasscom-insights/generative-ai-tracker-tech-industry-activity

 


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Madhumay
Deputy Manager - Research

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