State of AI Report: 6 trends shaping the landscape in 2025

State ofAI Global | 2024 recap Global data and analysis on dealmaking, funding,and exits by private marketAIcompanies Makesmartertech decisions. Our platform will help youdiscover, understand, andmanageyour response to emerging tech. Make confidenttech decisions that drive growth, improve operations, andbeat the competition with CB Insights. ▮▮▮▮IIIITry our platform–free!Sign up for a free trial “Steal” our data. Download the underlying data in this report. If you createany analysis or visualizations with this data, send it ourway and you could be featured in the CBI newsletter.@ us on social–LinkedIn X (Twitter)Instagram TL;DRYour rundown onAIin 2024 $100.4B 24% 8 AI funding in 2024—a record high driven by 13$1B+ deals. Out of 10 high-potentialstartup regions outside of theUS are in Europe. Share of AI deals from majorindustry tech sectors in 2024,down from 38% in 2019. While the US dominated AI funding (76%)and deals (49%) in 2024, countries inEurope show strong potential in AIdevelopment based on CB InsightsMosaic startup health scores.Israel leads with the highest medianMosaic score (700) among AI companiesraising funding.See the data→ Vertical tech areas like digital health,fintech, and retail tech aresecuringasmaller percentage ofoverall AIdeals.The datasuggests thatcompaniesfocused on infrastructure and horizontalAI applications are drawing greaterinvestor interestamid generative AI's rise. AI venture funding surged past the $100Bmark for the first time in 2024, propelledby 13 $1B+ deals. Overall, mega-rounds ($100M+ deals)accounted for 69% of total funding—reflecting the high costs of AIdevelopment. At the same time, nearly 3 in4 AI deals (74%) remain early-stage asinvestors look to get in on the ground floorof the AI opportunity. See the data→ See the data→ TL;DRYour rundown onAIin 2024 159% 136 32 New AI unicorns in 2024,nearly half of all new unicorns. Increase in fundingQoQinQ4’24. M&A exits in Europe, up 7%YoY. Funding hit $43.8B in Q4’24, orover 2.5xthe prior quarter’s total. AI now dominates new unicorn creation,with AI startups racing to the $1Bthreshold at much faster rates than non-AIstartups (2 years vs. 9 years at themedian). Overall, the AI acquisition waveremainedstrong in 2024, with 384 exits nearlymatching 2023’s record of 397. The funding increase is largely explainedby a wave of massive deals: mega-rounds($100M+ deals) accounted for 80% ofQ4’24 dollars. AI infrastructure playersclosed 4 of the top 5 deals of the year inthe quarter. Europe-based startupsrepresented over athird of M&A activity, cementing a4-yearstreakof risingacquisitions among theregion’s startups. However, AI unicorns are lesscommercially mature than non-AIunicorns, indicating their valuations arebased more on potential than provenbusiness models at this stage. See the data→ See the data→ See the data→ TL;DRState ofAI Global AI fundinghitsa record$100.4Bin 2024 Mega-rounds(deals worth $100M+) to AI infrastructure players drive funding boom TL;DRState ofAI Shrinking slice of AI investment pie Fintech, digital health, and retail tech lose share of total AI equity deals TL;DRState ofAI Promising regional AI startup hubs European countries show strong potential in AI development outside USBased on median Mosaic score (a measure of private company health) by country* TL;DRState ofAI Q4’24sees AI fundingcatapult Disclosedglobal equity funding and deal count TL;DRState ofAI Acquisitions of European AI startups heat up Disclosed M&A exits of Europe-based private AI companies TL;DRState ofAI AI startups race to unicorn status pre-scale Shareof new unicorns(companies reaching $1B+ valuation) in 2024 by Commercial Maturity score ContentsState of AI China111India115Singapore119Japan123Europe127United Kingdom135Germany139France143Israel147Netherlands151LatAm155 Investment Trends14Unicorns38Exit Trends44Investors50 Geographic Trends54 Global Trends Investment Trends State of AI|Global Trends|Investment Trends Annual equity funding & deals State of AI|Global Trends|Investment Trends Quarterly equity funding & deals State of AI|Global Trends|Investment Trends Percent of quarterly deals by global region State of AI|Global Trends|Investment Trends Percent of quarterly deals by investor group State of AI|Global Trends|Investment Trends Annual average & median deal size State of AI|Global Trends|Investment Trends Annual median deal size by global region State of AI|Global Trends|Investment Trends Annual median deal size by investor group State of AI|Global Trends|Investment Trends Annual mega-round funding & deals State of AI|Global Trends|Investment Trends Quarterly funding & deals from mega-rounds (deals worth $100m+) State of AI|Global Trends|Investment Trends Quarterly mega-round deals by global region State of AI|Global Trends|Investment Trends Quarterly mega-rounds as percent of funding State of AI|Global Trends|Investment Trends Annual percent o