Investments in artificial intelligence fell sharply in the second quarter due to the corona crisis.
CB Insights: AI venture deals in Q2 2020 slump to lowest since 2017
According to a new report from CB Insights, AI-related startups raised $7.22 billion in 458 deals during the three months ending June 30. Both figures were down from the $8.4 billion invested in 516 deals during the first quarter of 2020.
The second quarter figure was also largely impacted by a hefty $ 3 billion investment for Waymo, the autonomous car company.
The decline in deals appeared to be driven by fewer seed funding rounds. Instead, venture capitalists seem to be putting more money into mature AI companies.
The US is still ahead of China in AI startup funding. American companies raised more than $ 4 billion billion compared to $1.350 billion in China.
As the pandemic spread across the globe this year, AI seemed well-positioned to make data more useful in areas such as health care research and tracing. Indeed, the report said AI companies working in health-related fields represented 84 deals in Q2, up from 82 in Q1. But other areas, such as AI for finance, saw a decrease in interest.