Global AI Deals Reach Record $26.6B in 2019

AI startups and investors popped the bubbly in 2019.

Private companies focused on AI raised a record $26.6 billion across more than 2,200 deals worldwide, per CB Insights. For reference, 2018 saw 1,940 deals totaling $22.1 billion. 2017: 1,711 and $16.8 billion.

In our backyard: Earlier this month, the National Venture Capital Association said 1,356 AI startups in the U.S. raised $18.5 billion in 2019, VentureBeat reported.

The AI hubs

The U.S. led with 39% of global AI deal share in 2019, but you can hear footsteps from the rest of the world, especially China and the U.K.

China accounted for 13% of AI deals last year, but the amount of $$$ dropped to 11% of global investment (China set a high-water mark of 21% in 2018).

• What happened: A growing rift between the U.S. and China is dashing some early stage deals, SCMP reports. And investors are cautious about a bubble and haven't seen many applications outside surveillance.

The U.K. is moving on up, capturing 7% of all deals. British AI startups took in roughly $3.2 billion in VC funding last year, a 23% jump from 2018, per Dealroom/Tech Nation data cited by the WSJ. Tech investors clearly weren't too bothered by Brexit negotiations.

Other highlights

• Investors: Nine of the 10 most active VC investors in AI in 2019 were based in the U.S. And the one exception was Sequoia Capital China, which is affiliated with the American firm.
• Unicorns: 24 AI startups ended 2019 with valuations over $1 billion, up from 19 in 2018.

Bottom line: The AI hype train left the station a while ago. But techniques like machine learning, computer vision, and natural language processing aren't just buzzwords—they're business opportunities in huge industries. Startups and their VC benefactors are capitalizing on putting AI to use in healthcare, finance, insurance, retail, and transportation.