The bubble isn’t showing signs of bursting yet! According to a report in TechCrunch, Generative AI funding reached new heights in 2024!

According to the article, titled (wait for it!) Generative AI funding reached new heights in 2024 by Kyle Wiggers and available here, Investments in generative AI, which encompasses a range of AI-powered apps, tools, and services to generate text, images, videos, speech, music, and more, reached new heights last year. According to data from financial tracker PitchBook compiled for TechCrunch, generative AI companies worldwide raised $56 billion from VCs in 2024 across 885 deals.

That raw cash total is a new record for the segment. It’s up 192% from 2023, when investors poured $29.1 billion into generative AI startups across 691 deals.

“We aren’t seeing a slowdown in generative AI funding, as big names like OpenAI, Anthropic, and xAI continue to secure major raises and release new, competitive products,” said Ali Javaheri, an emerging technology analyst at PitchBook, in an interview.

Deal value in Q4 2024 soared to $31.1 billion with the closure of mammoth rounds like Databricks’ $10 billion Series J, xAI’s $6 billion Series C, Anthropic’s $4 billion strategic investment from Amazon, and OpenAI’s $6.6 billion round.

Mergers and acquisitions were a small share of generative AI investments in 2024: $951 million, per PitchBook data. To be clear, that’s exclusive of the various “acqui-hire” deals executed by Google, Microsoft, and Amazon. Google reportedly paid $2.7 billion to hire much of chatbot startup Character AI‘s staff and license its technology, while Microsoft is said to have spent $650 million licensing Inflection‘s AI models and hiring its CEO, Mustafa Suleyman.

As always, when you want to know where an industry is heading, follow the money. And that includes the eDiscovery industry.

So, what do you think? Where does your organization stand in adopting generative AI in eDiscovery? Please share any comments you might have or if you’d like to know more about a particular topic.

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