Despite predictions of a slowdown, AI funding surged in the first quarter of 2024, with $12.2 billion invested in 1,166 deals, according to a recent report by Crunchbase. This marks a 4% increase from the previous quarter but a 25% drop from the same period last year, largely due to the absence of mega-rounds like OpenAI’s $10 billion-plus deal.

Notably, the quarter saw only one $1 billion round, contrasting with multiple such rounds in 2023. Prominent rounds included Moonshot AI’s $1 billion funding led by Alibaba, Figure’s $675 million round for AI-enhanced robots, and MiniMax’s $600 million Series B for text-to-visual/audio conversion.

Despite concerns about a potential slowdown, investors remain optimistic about AI’s future, buoyed by significant interest in specialized AI applications and hardware plays. While recent layoffs at some AI startups raise questions, the overall trend suggests continued investor enthusiasm and an active exit market, likely driving further investment in AI-related technologies.

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