Dublin, IE – In 2024, Generative AI venture capital investments surged to $45 billion, nearly doubling the $24 billion investment in 2023. This is a key year in the history of this technology, featuring 1,050 funding deals, and substantial late-stage investments dominating the landscape. Some examples include the OpenAI $6.6 billion funding round in October, Waymo’s $5 billion in July, and xAI’s $5 billion in November.
North America topped the charts in the global market with an 85% investment value and 70% deal volume. Europe, on the other hand, has started showing promise with companies such as Mistral AI and Poolside in France, both sitting among the top 10 global unicorns. Furthermore, the trend of shifting toward established companies is clear, as the average size of late-stage deal sizes surged from $48 million in 2023 to $327 million in 2024.
Grit Young, Partner and Technology Sector Leader at EY Ireland said, “Following a breakout year for VC investment in 2023, this year we have seen the trend really accelerate. Despite a number of headwinds facing VCs and investors in the wider markets, we are seeing record breaking investment in GenAI companies this year, and a very strong pipeline emerging for 2025 with a number of landmark funding rounds due to close early in the new year.”
New generative AI applications will cover fintech, biopharma, and digital commerce, with AI hardware and vertical AI innovation setting the stage for future growth. EY Ireland predicts the market will grow to $1.3 trillion by 2032.
Eoin O’Reilly, Partner and Head of AI and Data at EY Ireland said, “At EY we believe that AI – both traditional AI and GenAI – is changing everything because AI is becoming part of everything. VCs and other investors are backing GenAI in growing numbers because the longer terms trends of customer adoption and capabaility of the technology are all pointing in the one direction. Both globally and here in Ireland, we think that the next decade will see a fundamental transformation of organizations, business models and value creation all underpinned by AI.”
As Ireland positions itself as a GenAI hub, government initiatives, and strategic investments will be key to nurturing innovation and ensuring competitiveness in the global AI ecosystem.
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