In this piece, we will take a look at 20 best-funded AI startups in 2023. If you want to see more best-funded AI startups in this selection, check out 5 Best-Funded AI Startups in 2023.
Artificial intelligence gold rush is the latest sensation taking the world by storm owing to the technology’s potential to transform various industries from medicine to sales and software development. The technology remains the center of attention as it is expected to change how we live and work. While the global artificial intelligence market was valued at $136.55 billion in 2022, it is growing at a compound annual growth rate of 37.3%.
The tremendous growth has to do with the continuous research and innovation spearheaded by tech giants. In addition, advanced technology has been adopted in industry verticals such as automotive, healthcare, retail, finance, and manufacturing. In the race to gain access to the next big thing around generative artificial intelligence, investment in the sector has increased significantly over the past few months.
Investments into startups using or creating artificial intelligence innovations rose to record highs of $113.3 billion in 2021. However, it fell to $60 billion in 2022 amid a credit crunch in the aftermath of inflation skyrocketing to record highs. With renewed attention to revolutionary technology, there is a significant uptick in investments in the segment. In the year’s first three months, $13.5 billion was invested in various AI innovations.
The soaring investments into generative AI startups come on the heels of Microsoft Corporation (NASDAQ:MSFT) investing $10 billion into OpenAI in the race to gain access to AI-powered chatbot ChatGPT. Companies like NVIDIA Corp (NASDAQ:NVDA) have exploded in the stock market, rallying by more than 300% on benefiting from the AI boom.
Small companies working on AI innovations are also attracting big investments from tech giants. Toronto-based Cohere raised $250 million in May in a deal that valued the company at $2 billion. AI Video platform Runaway is also the center of attention, having raised $100 million in funding in a deal that values it at $1.5 billion.
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Google backed Anthropic and AI focused cloud startup CoreWeave have also raised $450 million and $421 million, respectively. The investment spree has seen AI startups with a valuation of over $1 billion increase significantly, with 10 newly minted unicorns in May alone. Anthropic is one of the startups that have joined the billion-dollar club.
Amid the soaring investments, there is still a cloud of uncertainty about whether AI is just another bubble akin to the Web3 fad or metaverse. Nevertheless, proponents insist AI stands out as opposed to blockchain or other innovative technologies partly because it’s been around for quite some time and boasts of broader use cases.
Our Methodology
The list of the 20 best-funded AI startups in 2023 considers some of the biggest startups that have attracted massive investments owing to their game-changing innovations. We compiled the list by analyzing the top AI startups as listed by Bloomberg and Hubspot and provided details why the startups stand out and their prospects around the revolutionary technology. We ranked the stocks based on how much money they have raised over the years to accelerate their AI innovations and breakthroughs.
20. Character AI
Funds Raised: $150 Million
Valuation: $1 Billion
Character.ai is a startup operating an AI-powered platform that allows people to create and animate 3D characters easily. Thanks to its AI-powered tools, it will enable users to customize characters, appearance, movements, and behavior, therefore, creating realistic animations in real time.
Its AI technology and solutions are increasingly being used in a wide range of applications, from video game development to film production and for enhancing virtual reality experience and e-commerce. The Menlo Park California Company has raised $150 million in two funding rounds for a valuation of $1 billion.
19. Synthesia
Funds Raised: $156 Million
Valuation: $1 Billion
Synthesia is a startup that offers an AI-powered platform that allows businesses and people to create personalized video content at scale. It has carved a niche in leveraging revolutionary technology to enhance the creation of realistic and engaging videos with human-like avatars.
Therefore, Synthesia has become a key player in developing applications and content for e-learning and marketing, news reporting, and virtual events. Founded in 2017 and based in London, England, the startup has raised $156.6 million to date, giving it a valuation of $1 billion.
18. Interactions
Funds Raised: $162 Million
Valuation: $1 Billion
Interaction is an emerging startup that runs an artificial intelligence-powered virtual assistant platform that helps enterprises improve customer experience and cut costs. The company develops and delivers virtual assistant applications that allow businesses to deliver automated natural language communications for customer care.
Based in Franklin, Massachusetts, the company has raised $162 million since its inception in 2013.
17. Labelbox
Funds Raised: $188 Million
Valuation: $1 Billion
Founded in 2018 in San Francisco, California, Labelbox offers a customizable data engine that produces high-quality training data and helps AI teams quickly build world-class machine learning models. Its solution allows people to efficiently annotate and label large datasets, including images, videos, and text.
Its technology also uses algorithms to enhance the accuracy and efficiency of the annotation price while providing real-time feedback and quality control. The company has raised close to $188 million for a close to $1 billion valuation.
16. Runway
Funds Raised: $236 Million
Valuation: $1.5 Billion
Runway is an emerging startup that’s building generative AI tools for multimedia content creators. Founded in 2018, the company specializes in developing AI-powered tools geared toward moviemakers, cinematographers, and photographers.
Its focus has shifted significantly towards the video side, resulting in the launch of Gen 2, an AI model that generates videos and text prompts or an existing image. The company has raised close to $236 million to help accelerate its AI innovation. The company is currently valued at close to $1.5 billion.
15. Abnormal Security
Funds Raised: $284 Million
Valuation: $4 Billion
Abnormal Security is a business-to-business security company developing AI-powered solutions for protecting clients from email attacks. Its AI-powered Abnormal Behavior Technology solutions are capable of mapping out the content of emails sent.
Therefore, the company is able to provide an AI-powered email security system that leverages machine learning to stop any attacks via emails. Founded in 2018, the company has raised close to $284 million and boasts of a valuation of close to $4 billion.
14. Moveworks
Funds Raised: $315 Million
Valuation: $2.1 Billion
Moveworks has carved a niche as a generative artificial intelligence platform that boosts employee productivity through information surfacing and automation of tasks using natural language. Founded in 2016, the AI startup seeks to give enterprises a conversational interface that works across every system. While leveraging GPT class machine learning models, its generative AI platform can learn the unique language of any organization to solve thousands of problems.
In 2021 it raised $200 million in Series C financing, representing the largest investment in an AI platform for employee service. The company has raised $315 million since its inception, giving it a valuation of nearly $2.1 billion.
13. Eightfold
Funds Raised: $396 Million
Valuation: $2.1 Billion
Eightfold is an emerging startup leveraging artificial intelligence to power a suite of human resource-related products aimed at retaining training and funding the best talent in the marketplace. Its Talent Intelligence Platform helps HR officials know what they need and when they need it. Whether it is finding or developing talent, the use of AI helps organizations stay ahead of the pack in talent search.
Corporate clients like Postmates and Capital One Hulu increasingly use its AI-powered talent search platform. Founded in 2016, the company has raised close to $396 million and is currently valued at $2.1 billion.
12. Grammarly
Funds Raised: $400 Million
Valuation: $13 Billion
Grammarly is an emerging startup that has leveraged the power of artificial intelligence to perfection to enhance spelling and grammar editing. Its primary AI-powered software is available as a desktop app and browser extension and used by millions of people worldwide, including over 30K professional and enterprise teams.
While the company has raised close to $400 million since its inception in 2009, it has a post-funding valuation of about $13 billion.
11. Adept AI
Funds Raised: $415 Million
Valuation: $1 Billion
Adept AI is a machine learning research and product lab that builds general intelligence applications enabling humans and computers to work together. Its AI-powered solutions automate software processes for developers. Its primary go is to develop AI tools that help humans and computers work together to solve problems.
The company has raised close to $415 million since inception giving it a valuation of at least $1 billion. A Lot of money has been used in productization model training and headcount growth.
10. Cohere
Funds Raised: $445 Million
Valuation: $2.1 Billion
Cohere is a startup empowering developers and enterprises to develop amazing products and capture true business value with artificial intelligence. Its solutions and products are designed to power interactive chat features and generate text product descriptions, blog posts, and articles.
With around 180 employees, Cohere has raised close to $445 million, giving it a valuation of close to $2.1 billion.
9. Builder.ai
Funds Raised: $450 Million
Valuation: $2 Billion
Builder.ai is an emerging startup that’s making it easy for people to create applications using artificial intelligence. It offers an AI-powered software application that helps people build and operate software projects exactly how they need them without requiring technical knowledge.
The company has raised close to $450 million in funds that have gone a long way in developing a no-code AI-powered app development platform for building operating software projects.
8. Shield AI
Funds Raised: $573.1 Million
Valuation: $2.4 Billion
Shield AI is one of the fastest-growing defense technology companies that are leveraging artificial intelligence technology to develop autonomous systems for military applications. With the help of generative AI, it’s come up with proprietary technology that uses advanced algorithms and sensors o control and navigates unmanned systems in complex environments.
Its primary goal is to come up with AI-powered systems capable of protecting service members and civilians. Consequently, it has developed drones and aircraft capable of operating autonomously without GPS communications or a pilot. Its solutions are commonly used for resonances surveillance and other mission-critical tasks.
Founded in 2015 and based in San Diego, California, the company has raised close to $573.1 million for a close to $2.4 billion valuation.
7. AlphaSense
Funds Raised: $620 Million
Valuation: $2.5 Billion
AlphaSense has taken the art of marketing to a whole new level with the help of artificial intelligence. With over 2,000 clients, including most of the S&P 500 companies, the company leverages artificial intelligence to create a search engine for analyzing data for corporations and financial firms.
The use of artificial intelligence has made it possible for professionals to make critical, informed decisions. Its primary tool is Smart Summaries, which provides content summaries such as earning calls. The company has raised nearly $620 million, with the latest being $100 million in a funding round valued at $2.5 billion.
6. Highspot
Funds Raised: $644 Million
Valuation: $3.5 Billion
Highspot has made a name for itself as a reliable marketing startup. The company operates an AI-based sales enablement platform that leverages machine learning technology to guide sales professionals in everything they do.
AI-powered tools allow users to organize marketing content for coaching reps to make data-driven decisions, acting as a one-stop shop sales enablement platform.
Since its inception in 2012, the company has raised close to $644 million over 10 funding rounds giving it a valuation of over $3.5 billion.
Click to continue reading and see 5 Best-Funded AI Startups in 2023.
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Disclosure: None. 20 Best-Funded AI Startups in 2023 is originally published on Insider Monkey.