AI Funding Soars to $17.9 Billion as the Rest of Tech Slumps

Multibillion-dollar investments in artificial intelligence startups have become almost commonplace in Silicon Valley — with dollars raised for AI companies outpacing funding totals in every other category of tech, and reaching $17.9 billion in the third quarter.

According to PitchBook data compiled for Bloomberg, the value of funding for AI companies climbed 27% globally in the third quarter compared to the year before. That’s even as overall deals for startups fell 31% from a year earlier to hit $73 billion worldwide.

The opposing trend lines highlight a divide between AI startups and the rest of the industry. Rising interest rates ...