The AI industry is booming right now, with many businesses competing for people’s attention. This time, we’d like to list the best AI companies to invest in 2024, covering different industries. These are either businesses with a lot of promise or ones that have already made a buzz on the market. Our only main condition is that they have to use AI to innovate; the rest is flexible.
As you will see, this list isn’t just about helping you find the next big thing but also about highlighting how AI is transforming markets. We want to spotlight the power of AI and show what the future holds for the technology. With that said, let’s talk about the optimal AI companies to invest in.
Why Investors are Investing Billions in AI Startups
There have been some high-profile investments in AI-centric companies as of late, such as Microsoft giving OpenAI a whopping $1 billion in 2019. That was a powerful enough signal about the validity of AI. Yet, Microsoft didn’t stop there, announcing even larger investments in 2024. Its long-term commitment to OpenAI is arguably as powerful as the deal itself.
That kind of interest in new AI companies to invest in, for a lot of corporations, hinges more on their potential than their current status. With technology being refined daily, existing applications are just a taste of new features. This prompts significant financing as the industry is in a state of constant growth.
What are the Most Common AI Applications in Today’s Business?
It’s hard to pinpoint just one leading use of AI, as most industries have already begun using AI-powered solutions. The most talked about may be generative models, such as Midjourney or ChatGPT, but they are not the most transformative. We’ll base our list on applications that are changing the landscape and pushing AI companies to invest in further research:
- AI-powered recommendations
- Processing tools for social media, such as auto-translations and adaptive text
- Weak point identification for cybersecurity
AI Recommendations
Put simply, AI-based recommendations are changing how e-commerce works, making upselling easier. These smart algorithms pinpoint exactly what a customer could want, based on their prior activity, and thus increase conversion rates exponentially.
Social Media Tools
AI algorithms can be used to create alt text for images, an essential accessibility feature. For a broader audience, it can also be used to offer refined translations. With a well-trained model, the cost could eventually be a fraction of what Google Translate API usage costs.
Cybersecurity Testing
Used as an extension of a regular team, AI can do brute-force testing, eventually helping uncover any weak points. The AI solutions can be run pretty much around the clock, guaranteeing better detection and, thus, helping catch and fix any severe security issues. If you’re on the lookout for AI companies to invest in, cybersecurity solutions are at their peak.
Success Stories of Funded AI Ventures
There are quite a few companies on the market right now that are being funded with ambitious projects. To highlight some of the most impressive, we’ll split them by the field where their solutions are applied. Any of these could land on a list of the best AI companies to invest in 2023.
Healthcare: Revolutionising Patient Care and Diagnostics
One of the best examples of AI being used for disease prevention is Freenome. This startup uses artificial intelligence to detect cancer with 93% sensitivity, beating out the current pancreatic cancer tests. This is a transformative development for patients, as swift and affordable cancer detection will inevitably lead to early treatment, with a higher chance of success.
On the patient care side, Babylon Health, a UK-based startup, uses AI to provide health services. This includes symptom detection, future health forecasts, and even decisions on hospitalisation. While the service has gone private, meaning it’s no longer one of the new AI companies to invest in, similar businesses, such as the US-based Olive, exist.
Renewable Energy: Pioneering Sustainable Solutions
Perhaps the biggest problem facing the renewable energy sector is the storage cost. That makes Stem, a US-based startup, a prime solution on the market. Their Athena AI helps maximise savings, reduce GHG emissions, and prioritise long-term success and sustainability. With their AI named Product of the Year, Stem is one of the top AI companies to invest in.
Meanwhile, Drishya, a Canadian startup, looks to make renewable energy smarter. Using its VoltOS AI, the company helps curate energy flows within microgrids. In simpler words, it helps route the power where it’s needed, predicting how much energy will be required in specific grids on a localised level. This prevents energy waste and helps keep energy prices down.
Finance: Enhancing Fraud Detection and Financial Analysis
Booming on the market is Enova, which closed a $550 million funding round last year. The company uses AI and machine learning to do credit assessments. It’s mostly serving small businesses to help streamline the process of acquiring loans. This model has made Enova the centre of attention and one of the prime AI companies to invest in.
DataRobot is a US startup that specialises in predictive models. These AI-powered solutions help detect fraudulent payments, assess risks, and manage money lending. Unlike Enova, DataRobot is focused on working with financial institutions, not their customers. Thanks to a $6.3 billion valuation, the firm is considered one of the top AI companies to invest in.
Manufacturing: Optimising Production and Supply Chains
Some companies in the AI market have grown beyond scrappy underdogs thanks to high-quality solutions. Databricks is an example of this success story, with $1.6 billion raised in their 2022 funding round.
Unquestionably among the most attractive AI companies to invest in, Databricks uses machine learning to forecast demand, optimise supply chains, and provide certainty. Their Lakehouse platform is focused solely on eliminating the long wait times that come with traditional data analysis. Instead, the AI-powered solution provides fast forecasts and helps plan production optimally.
Ecosystem of AI Entrepreneurship
The current boom is pushing AI companies to invest in 2024 growth. As Microsoft and Google are funding a lucky few, other startups are in heated competition. This creates the right environment for new technology to appear and older models to be perfected. That is where investors come in, helping new companies get their start and achieve their potential.
Grand View Research is projecting a 37.3% compound annual growth rate for the AI industry until 2030. With this powerful expansion and a bright forecast for the future, it’s best to find a venture to join now. As time goes by, the industry will only get more lucrative. With that said, let’s talk about AI companies to invest in 2024.
Best AI Companies To Invest In 2024
NVIDIA (NVDA)
The graphics processing unit (GPU) market is dominated by NVIDIA, with 82% control. The company has played a significant role in AI development, exemplified by their creation of ChatGPT, a model that underwent training utilizing 10,000 NVIDIA GPUs. With its dominance of visual computing chips and GPUs optimized for AI, NVIDIA enables many cutting-edge applications of deep learning.
- Market cap: $2.133 T
- Headquarters: Santa Clara, California
- Founded: 1993
- AI focus: AI models and services, AI platform software, AI supercomputer
Microsoft (MSFT)
An industry giant for close to four decades, Microsoft reigns as the biggest company in the world. In January 2023, Microsoft solidified its position as a leading player in the AI field by investing $10 billion into OpenAI and incorporating its ChatGPT conversational AI chatbot and Dall-E image generation technology into Bing search and Edge browsing.
- Market cap: $3.17 T
- Headquarters: Washington, United States
- Founded: 1975
- AI focus: web search, AI assistance
Meta Platforms (META)
Meta, the company behind Facebook, Instagram, WhatsApp, and Oculus, created a buzz in February 2024 when it revealed its plans to distinguish between real-world content and AI-generated visuals and videos on its platforms. As a leader in social media and communications, Meta’s AI development deserves attention.
- Market cap: $1.317 T
- Headquarters: California, United States
- Founded: 2004
- AI focus: generative AI, computer vision, NLP, infrastructure
Tesla (TSLA)
It’s been two decades since Tesla came into existence to rethink the car industry through technological innovation. The Model 3 from Tesla has become the top-selling electric vehicle with a plug-in charger in history. With innovations like autonomous driving and AI-powered humanoid robots, leveraging AI to sense conditions and pilot with minimal human input, Tesla and its CEO Elon Musk have teased next-gen vehicles for late 2025.
- Market cap: $563.3 B
- Headquarters: Texas, United States
- Founded: 2003
- AI focus: robotics
IBM (IBM)
This is one of the oldest tech giants you should consider investing in, among other AI companies. In the past five years, IBM has filed 1,591 AI-related US patents, revealing its AI emphasis. In 2023, IBM’s Watson AI system received its second consecutive top ranking in Gartner’s analysis of enterprise-level conversational AI technologies.
- Market cap: $173.5 B
- Headquarters: New York
- Founded: 1911
- AI focus: AI workflows, data research, generative AI
Alphabet (GOOG)
With its 2017 Google AI division, Alphabet expanded into AI and deep learning. This whole division develops various AI solutions and researches machine learning capabilities to improve the possibilities of Google products.
- Market cap: $1.958 T
- Headquarters: Silicon Valley
- Founded: 2015
- AI focus: AI-powered video creation, Google AI assistant, ML, chatbots, neural language models, a quantum processor
Darktrace (DARK.L)
Darktrace’s AI machine learning continuously learns normal network behavior and user patterns to identify anomalies. In 2023, Darktrace positioned its cybersecurity solution as uniquely qualified to address risks from generative AI like ChatGPT, arguing that current tools cannot sufficiently handle such advanced chatbots. October 2023 saw Darktrace introduce a new AI cloud architecture visualization, threat detection, and recommendation product.
- Market cap: $3.94 B
- Headquarters: Cambridge, United Kingdom
- Founded: 2013
- AI focus: AI cybersecurity
The leading AI tech companies outlined above give a selection of tech giants and startups well-positioned to capitalize on the AI revolution.
Top New AI Companies to Consider for Investment
The first company we’d like to recommend is Gridware. Focused on smarter energy use, Gridware’s AI model predicts and detects faults in the grid, helping avoid outages. In addition, it tracks the upkeep of energy elements, guaranteeing that they get proper care and thus last longer. If you want AI companies to invest in our future, Gridware is the one to watch.
We mentioned that online security is one of the more popular AI applications, and Abnormal Security is deep in that market. The company’s proprietary algorithm helps detect malicious emails going beyond regular spam. It prevents phishing attempts, protecting users from account takeovers. Within just a few years on the market, Abnormal Security has made a real splash.
Labelbox is another prominent new name because its purpose is making and categorising datasets for AI training. Operating as a platform where AI businesses can collaborate. Creating a space for AI companies to invest their time and data paves the way for new, exciting developments within this technology’s space.
Best AI Startups To Invest In 2024
Now for optimal AI companies to invest in 2024, ones that will reach new heights in the next couple of years. We’ll start with Tempus, a US-based startup specialising in healthcare. This company has one of the largest medical databases, making research easier and decisions evidence-based. It’d be smart to get on board this year because Tempus is growing fast.
AssemblyAI is a rising star in the text-processing market. Their speech-to-text tools are cutting-edge and ready to rival proprietary solutions from far larger corporations. Its potential for usage in analytics and media transcription opens up a broad target audience. With that comes the chance for long-term success, making it one of the most promising AI companies to invest in.
For those who want something that they can integrate with their own business, Capacity is a curious project. Using AI learning, their model analyses customer and support interactions and helps make them more efficient and satisfactory. It automates some of the decisions that support employees have to make and frees up their time for more in-depth ticket resolution.
Why Investors Are Investing Billions in AI Startups
Investments in artificial intelligence (AI) startups have skyrocketed in recent years, with billions in funding pouring into the space. A few key reasons tech giants are looking for AI companies to invest in are:
- Huge potential market. AI applications are spreading across every industry, with some estimates putting the total market size at $1 trillion by 2028. Investors want a piece of that enormous opportunity.
- Competitive advantage. AI technologies empower organizations to streamline workflows, extract valuable information from large datasets, make data-driven choices, and elevate customer satisfaction through personalized interactions. Investors understand that AI can provide a significant competitive edge.
- Productivity gains. AI tools and platforms can amplify human efforts, allowing AI tech companies to get more done with fewer resources. The promise of productivity improvements makes AI tech attractive.
- ROI potential. Studies suggest that AI could deliver up to $4.4 trillion in business value annually. The possibility of returns on AI investments excites investors.
- Innovation driver. AI is fueling entirely new business models, products, and service offerings. Investors see how AI can catalyze innovation inside and outside companies.
- Talent magnet. Experts across disciplines are flocking to the AI space. Investing in AI startups helps assemble, motivate, and retain top technical talent.
According to the report, 2023 witnessed a surge in investments as they grew over $29 billion in nearly 700 generative AI deals, marking a substantial rise of more than 260% in value compared to the previous year.
In addition to NVIDIA, Microsoft has dedicated significant funds towards the advancement of AI, amounting to $13 billion. Similarly, Google’s parent company, Alphabet, is another tech player investing and building models. Apart from focusing on developing its own AI model, Gemini, Google committed to invest $2 billion in Anthropic. The tech giants are not alone.
Predictions for the Future of AI Entrepreneurship
As reflected by our list of the best AI companies to invest in 2023, the AI space is booming, with powerful players entering the market. We expect self-learning systems to be a major new trend, with already common energy solutions taking an even bigger portion of the market. Generative AI will also skyrocket as models such as ChatGPT become more refined.
In all, the future seems bright, and we hope you find AI companies to invest in 2023 because the competition is heated. At this stage, it’s still possible to enter the market with a solution of your own, developed by S-PRO’s skilled AI team. Get in touch now to make sure your company will be listed alongside other greats in the industry.
