11 Jul Artificial intelligence M&A is booming – Q2 2024 is highly significant
While AI startups have continued to attract a lot of attention from venture capitalists, securing 30% of all VC funding. These startups collectively received an impressive $19 billion, marking a 30% increase compared to the previous quarter. Some major transactions included substantial investments in companies such as xAI, Scale, Sword, Poolside, Mobvoi, CoreWeave, and Mistral.
The AI M&A landscape has also seen significant activity, with the US and Europe each accounting for 40% of global exits, which encompass mergers, acquisitions, and initial public offerings (IPOs). This indicates a four-percentage point increase for the US from the previous quarter.
Notable AI exits in the US included IPOs from Tempus and Rubrik, both valued at over $5 billion, and the acquisition of Motional for $4.1 billion.
Based on insights from CB Insights, as we approach the midpoint of 2024, it is evident that AI startups are exerting a significant influence and are at the forefront, while other segments of the venture ecosystem are encountering various challenges.
Technology Return has successfully advised on multiple AI transactions since 2017, demonstrating our expertise and track record in this cutting-edge field.