The market for generative AI is growing by the day. The latest statistics published by Dealroom.co show that startups in this area of artificial intelligence have received an astounding $26 billion in funding over the last five years. In 2016, the investments were only at $126.8 million, but in 2023, they grew to $17.8 billion.
Between 2019 and 2023, US top generative AI companies had the most investments at $23.8 billion. While almost half of this sum ($12.3 billion) went to ChatGPT’s makers at OpenAI, the data demonstrate significant interest in the rest of the American Gen AI startups that raised $11.5 billion.
Other regions that have shown excellent investment in this segment of artificial intelligence include Europe ($1.8 billion), Asia ($1.2 billion), and the rest of the world ($721.7 million). In addition to chatbots, generative tools spread into running organizations' educational, creative, analytical, and marketing areas in 2024. These companies will make the biggest impact this year on the field of GenAI.
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Founded in 2022 in London, UK, Quizgecko aims to provide affordable educational evaluation services. Clark University, Amazon, and the University of Sheffield already use its tools. Quizgecko’s platform lets educational institutions and businesses provide tests and exams.
The AI-powered platform has instant assessment and scores with customizable time limits and question randomizers. Quizgecko shows that generative technology will play an important role in making education tailored to the needs of learners in different fields.
While OpenAI reigns supreme as the startup with the most considerable finances and computational capabilities, it doesn’t mean that the niche of text creation is utterly under its control. A case in point is the San Francisco-based generative AI company called Writesonic. Since its establishment in 2021, it has raised $2.72 million.
While the startup can’t boast large investments, it has plenty of customers. Writesonic helps companies and organizations write content that corresponds to their brand voice and is SEO-optimized. Writesonic shows the future of next-generation tools that cater to the organic marketing needs of various businesses.
This representative of artificial intelligence startups is made for users who must make many presentations. The San Francisco startup has been around since 2020 and has $81 million in investments. With Tome, it’s possible to create slides, format them, and add visual information. The platform uses a simple interface, which makes it more accessible for those without experience in graphic design. The productivity tool earned almost a million users five months after launching.
Like the popular Duolingo, TalkPal seeks to find a new approach to learning languages with the power of generative AI. This company hails from Delaware and is one of the youngest on this list, established in 2023. It was built from scratch and doesn’t currently have major investment partners.
TalkPal uses OpenAI’s GPT LLM to provide learning support for 57 languages and personal lessons based on an individual's proficiency and learning pace. The generative AI startup offers several learning modes and more advanced translations for primary users.
5. Stability AI
This London-based startup has grown in popularity over the past five years, gathering $123.8 million in investments. The company is currently valued at $1 billion. Stability AI developed its text-to-image model called Stable Diffusion. The generative AI startup offers DreamStudio APIs and open-source models, with the former being its primary source of income.
While image generation is its primary focus, the generative AI company delves into other areas of this technology. It works on a solution that converts text to audio and an LLM called Stable Beluga to make LLMs less harmful and better at reasoning. In 2024, Stability AI will likely play a crucial role in the open-source developer community.
Instead of working with text, video, or image generation, Soundraw lets people experiment with music. The Tokyo-based representative of artificial intelligence startups is only four years old but has already made a reputation for itself. The platform that raised $1.6 million of funding allows people to make their hits without paying royalties for personal use and sharing.
Soundraw supports musical experiments in such styles as acoustic, house, R&B, trap, and hip-hop. Regular people can use the platform for free. But, if they wish to add vocals to songs or use this content commercially, it will cost them. With the help of Soundraw, artists share their work on Spotify, Apple Music, and other popular streaming services.
Started in 2016, Rul.AI found $14.5 million in investments to fuel its chatbot production business. One of the top generative AI startups, the company specializes in conversational AI solutions.
Rul.AI caters to businesses that seek to improve conversations, deliver high-quality client experience, and work with cost-effective AI chatbots. Its solutions are scalable and compatible with other software products. The success of Rul.AI shows that organizations will have an interest in enhancing their customer service capacities in 2024.
8. Rephrase AI
The generative AI startup appeared on the scene in 2019. This California-based company gathered $12.2 million in investments. Despite its name, Rephrase AI doesn’t offer the same text editing capabilities as Quillbot and similar platforms.
Instead, the startup works on developing text-to-video generation solutions. Through its platform, clients choose virtual avatars and have them present marketing content, sales presentations, and other content types. Like Elai.io, it offers a budget for making content without paying exorbitant fees.
With funding as significant as OpenAI’s, it's no wonder that the startup will be the forerunner in the 2024 generative AI race. The San Francisco company attracted billions from Microsoft, Infosys, and Thrive Capital, to name a few. These funds allow OpenAI to invest in text, image, and audio content research through its GPT, DALL-E, and Whisper products.
Each tool opens new opportunities for commercial and daily use. OpenAI products transcribe, translate, and create detailed texts and new and enhanced existing images. Its text-large language model is integral to many AI-based platforms and tools.
One of the most promising startups of 2023, Moonvalley can revolutionize text-to-video creation. Experts already call it the Midjourney of this generative AI field. Despite the modest investments of $30 million, this example of artificial intelligence startups makes excellent progress with video content. Like Midjourney, this tool is available on the Discord platform.
Moonvalley is currently in the beta stage of development and is free to use for everyone. It demonstrates a great capacity for producing animations and realistic videos. In 2024, people might even see entire short films made by this startup if Moonvalley finds enough money to develop its model further.
11. Humata AI
The Texan startup found an exciting use for generative technology. Investors delivered $3.5 million to Humata AI and its tool. People and experts showed great interest in the tool that can be installed on computer desktops. With its help, users ask questions and receive answers about specific documents in the file system.
In addition to finding and summarizing information, Humata AI solution creates new content. This tool cuts time and improves efficiency for individuals and organizations that work with many documents. The platform is secure and encrypted, ensuring the safety of stored files.
12. Hippocratic AI
While many of the top generative AI startups make products for creative and marketing purposes, Hippocratic AI aims to introduce the technology into the medical field. Founded in 2022 in Palo Alto, California, the company raised $65 million in investments. The startup's goal is to make healthcare more accessible and accurate.
Hippocratic AI works with a team of medical professionals to fine-tune its large language model. The company calls this process reinforcement learning with human feedback. In 2024, this generative AI startup will show how this technology can be applied in the medical field and the merit of using a select group of professionals instead of general Internet data, as is the case with most modern large language models.
Yet another entry on this list comes straight from Silicon Valley. Descript is one of the top generative AI startups offering great audio and video editing tools. The company was established in 2017 and gathered $100 million in investments. It’s among the first startups to get investments from OpenAI’s Startup Fund.
In addition to robust editing capabilities, Descript allows content creators to capture and share webcam recordings. They can remove background noise and use a digital green screen and other tools. It’s also possible to share material utilizing the solution’s embeddable player. Descript demonstrates what the future of budget content creation will look like.
Programming will be much easier thanks to the Codeium platform developed by a Mountain View, California team. While the company has been around for only several years, it shows potential in generative AI. Codeium can streamline the programming process, ensuring all software products are more robust and made faster.
Their AI-based solution helps write, edit, and translate code from one programming language to another. It also offers programming knowledge and explains why a code works or doesn’t. Codeium can be integrated with over 40 editors and comprehends more than 70 programming languages.
15. Assembly AI
Another California-based startup, Assembly AI, began work back in 2017. In the past year, the company has received $50 million in funding with a total of $158.1 million in investments. The generative AI company and similar startups will lead the way in automating business processes through audio conversion.
Assembly AI’s solutions support 80 languages and facilitate speech transcription, content moderation, and topic detection. In addition to audio files, its solutions can turn live audio and even video into text. A product called Audio Intelligence helps companies conduct sentiment analysis, create summaries, and find key phrases in audio files.
The Future of Generative AI Companies
These companies show the capacity of generative artificial intelligence in medicine, education, content creation, music composition, coding, and even video editing. The world’s best startups will surely work to automate these processes and will have a significant impact on various industries in 2024 and beyond.
Some of these companies aren’t even five years old and have already earned a place on the generative scene. Their innovations will lead to even more automation and, in the end, save people time and resources, no matter what niche they’re working in or will be this year.