While investment in startups showed a downward trend in 2023, substantial capital injections were still prevalent. Remarkably, fifteen U.S.-based startups, with a strong representation from the AI sector, secured funding rounds of $500 million or more.
Top Funding Achievers of 2023
In the lead was OpenAI, which secured a rumored investment from Microsoft totaling approximately $10 billion, an increase from their previous $1 billion deal in 2019. This aligns Microsoft with major tech contenders like Alphabet and Amazon in the AI supremacy race, although regulatory scrutiny is on the horizon. Payments firm Stripe followed, raising $6.5 billion at a $50 billion valuation, a decrease from its peak $95 billion valuation in 2021. The funds are intended to provide liquidity for staff and cover an impending tax liability related to stock grants.
AI startup Anthropic was also active, pulling in nearly $7 billion over the year. Its notable September funding included up to $4 billion from Amazon, granting a minority stake and the rights for an additional $2.75 billion investment. Anthropic agreed to utilize Amazon Web Services for its operations, although no valuation was disclosed.
Additional Significant Capital Raises
Other significant raises included a $1.3 billion round for AI company Inflection AI, led by notable investors like Microsoft and Nvidia, and an equal amount by Juul, despite its controversies. Metropolis, a parking solutions startup, and Generate Capital, focusing on renewable energy, both secured $1.1 billion. Redwood Materials, a battery recycling firm, and autonomous driving company Stack AV, also joined the billion-dollar funding club.
The data illuminates the continued investor interest in AI and technology, despite an overall investment decline. U.S. startups still attract significant rounds, with OpenAI and Stripe’s deals being particularly noteworthy.
