19 Apr AI Venture Capital and Private Equity activity is currently high, and M&A activity is gaining traction.
AI innovation has revolutionized the IT hardware and software market.
AI data centers are prime investment opportunities.
AI can replace conventional software and processes, including those involving basic communications, repetitive tasks, and Microsoft Office functions.
The latest pitchbook report summarizes opportunities across four segments: horizontal platforms, vertical applications, AI & ML semiconductors, and autonomous machines.
The AI & ML market reached $262.5 billion in 2023, led by the vertical applications segment.
The report also includes new market research into foundation model application spending, which is expected to be the fastest-growing AI category with a 119.7% CAGR to 2026.
VC activity has remained consistent, excluding tech giant megadeals, with $22.3 billion invested in Q4 2023.
Median valuations were above the market midpoint, while equity sold fell lower.
Horizontal platforms set a VC record in 2023 with $33.0 billion raised.
Deal count remained lower, even during the GenAI excitement.
Tech giants focused on partnerships with LLM startups, except for some acquisitions.
