Investors pour $27.1 billion into Artificial Intelligence startups, defying a downturn

For two years, many unprofitable tech startups have cut costs, sold themselves or gone out of business. But the ones focused on artificial intelligence have been thriving.

Now the AI boom that started in late 2022 has become the strongest counterpoint to the broader startup downturn.

Investors poured $27.1 billion into AI startups in the United States from April to June, accounting for nearly half of all US startup funding in that period, according to PitchBook, which tracks startups. In total, US startups raised $56 billion, up 57% from a year earlier and the highest three-month haul in two years.