of AI-powered deep learning technology for use cases like facial recognition and
image processing.
Large-cap companies have also been pumping large sums into AI through
investments, internal R&D and acquisitions. McKinsey Global Research
estimated that the large, cash-rich digital-native companies like Amazon, Baidu
and Google, spent up to $39 billion on AI in 2016 alone.
27
While most of this
investment consisted of internal R&D, a good chunk of it was for developing
AI-focused corporate venture funds and acquisitions. In July of this year both
Google and Toyota announced new AI-focused corporate venture funds, following
on the heels of a similar move by Microsoft. These big tech companies have also
been quite acquisitive, snapping up promising AI startups of all stages. According
Sources: Pacer, Nathan. Artificial Intelligence (AI) Report Q3 2017. Venture Scanner, 21 July 2017,
.
slideshare.net/NathanPacer/venture-scanner-artificial-intelligence-ai-report-q3-2017.
Figure 18 VC funding into AI has accelerated in recent years
27
"Artificial Intelligence, The Next Digital Frontier?" McKinsey Global Institute, page 5.
Overall
AI VC funding grew at a CAGR of 49%
from 2011-2016, and 2017 is
currently at 172% of 2016 funding
AI Funding Over Time
Data through July 2017
Total Funding ($B)
7
6
5
4
3
2
1
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
70
