20 Top AI Startups to Watch in 2024

JW
By: Josh Wardini

According to AI statistics for 2024, over 77% of companies use or explore AI software in their operations to cut costs and improve productivity. As of August 2024, 91% of well-known companies invest in AI, while 44% of private sector companies plan to invest in this technological invention.

With AI startups having raised approximately $3.6 billion so far, it shows how promising greater returns are to come in the near future. This article shows the top AI startups in the market, their investors, locations, annual revenues, and founders who are changing the world.

What are the Top Upcoming AI Companies?

There are 57,933 artificial intelligence companies worldwide, with 14,700 in the US. These firms explore various applications of AI technology, and here's a closer look at which ones are at the forefront of the industry:

1. OpenAI

Year Founded: 2015
Founders: Elon Musk, Sam Altman, Ofir Peretz, Greg Brockman, Jessica Livingston, and others
Investors: Microsoft, Khosla Ventures, Peter Thiel, Reid Hoffman, Thrive Capital, Y Combinator, Sequoia Capital, and others
Annual Revenue: $1.3 billion
Location: San Francisco, California, USA
Company Valuation: Between $80 and $90 billion by the end of 2024

OpenAI launched ChatGPT in November 2022, a software that answers questions, translates, and generates texts. Within the first week of its launch, it reached over 1 million signups, a projected $200 million in 2024 and $1 billion by 2024.

Microsoft invested another $10 billion in January 2024 in the startup to accelerate the potential of AI and ensure the benefits are shared with the world.

🎉 Fun Fact:

ChatGPT receives an average of 60 million daily visits and 1 billion monthly views. ChatGPT receives approximately 88% of its traffic from direct sources, which means that visitors put "ChatGPT" straight into search engines.

2. ObserveAI

Year Founded: 2017
Founders: Swapnil Jain, Akash Sigg, and Sharath Keshava Narayana
Investors: Y Combinator, Nexus Venture Partners, Menlo Ventures, Next47, Emergent Ventures, and others
Annual Revenue: $24 million
Location: San Francisco, California, US
Company Valuation: $302 million

Observe AI is a voice AI platform that gives agents real-time feedback on customer sentiment and guides them to the next steps during the call. It is a cloud-based customer conversation analytics platform that helps the sales team analyze customer conversations based on their voice, pain points, context, and structure, increasing sales conversion and customer retention.

 💡 Did You Know?

Businesses are discovering more efficient ways to work on remote servers, which is driving the worldwide cloud computing market. Just in 2020, 60% of businesses moved their workloads to the cloud.

3. Abnormal Security

Year Founded: 2018
Founders: Evan Reiser and Sanjay Jeyakumar
Investors: The Syndicate Group and CrowdStrike Falcon Fund
Annual Revenue: $100 million
Location: San Francisco, California, USA
Company Valuation: $4 billion

Abnormal Security is an email security company that detects and protects against various email compromises, phishing attacks, spam attacks, etc. Its modern architecture and behavioral AI allow it to protect companies from targeted email attacks, protecting your inbound email and collaboration applications like Slack, Microsoft Teams, and Zoom.

4. Eightfold

Year Founded: 2016
Founders: Ashutosh Garg and Varun Kacholia
Investors: General Catalyst, Capital One Ventures, Foundation Capital, IVP and Lightspeed Venture Partners
Annual Revenue: $45.2 million
Location: Santa Clara, California, USA
Company Valuation: $2.1 billion

Eightfold AI is a talent intelligence platform designed to help organizations retain top performers, upskill and reskill the workforce, and recruit top talent efficiently. It transforms how you hire, maintain, and grow a diverse workforce to match people to the right opportunities. The company continuously learns from enterprise and individual performance to predict future roles, performance, and

🎉 Fun Fact:

According to a poll of over 10,000 recruiters, 79% are positive about the future of AI. At some point, they believe that the technology will be able to make decisions on hiring and firing workers with minimal human involvement, going beyond simple candidate screening.

5. PeopleAI

Year Founded: 2016
Founders: Oleg Rogynskyy
Investors: Nimesh Kampani, Sand Hill Angels, Y Combinator, Lightspeed Venture Partners, Andreessen Horowitz, Abdulla Albanna and others
Annual Revenue: $34.2 million
Location: San Francisco, California, USA
Company Valuation: $1.1 billion

People AI is a fully integrated generative AI sales solution that helps teams speed up complex enterprise sales cycles by engaging the right people. It automates manual tasks, inspects accounts, and helps teams see who engages within each account and how to deliver the highest deals.

6. Synthesia

Year Founded: 2017
Founders: Steffen Tjerrild, Matthias Niessner, Lourdes Agapito, Victor Riparbelli
Investors: NVentures, Kleiner Perkins, GV, Firstmark Capital, Alex Wang, Olivier Pomel, and Amjad Masad
Annual Revenue: $42 million
Location: London, England
Company Valuation: $1 billion

Synthesia is one of the top AI video creation platforms thousands of companies use to create videos in 120 languages. Most companies are converting their training, sales, or customer support content to AI video tutorials for their employees and customers. It also transforms your texts into speech or bite-sized videos to improve engagement, conversion, and retention for learning, support, and sales content.

7. JasperAI

Year Founded: 2020
Founders: Chris Hull, Dave Rogenmoser, John Philip Morgan
Investors: Insight Partners, M7 Real Estate, Icehouse Ventures, Bessemer Venture Partners, and others
Annual Revenue: $88 million
Location: Austin, Texas, USA
Company Valuation: $1.2 billion

Jasper is an AI writing tool that helps businesses create content by creating original, top-notch content in 26 languages. It allows users to develop content for social media marketing, emails, advertising, website design, artistic illustrations, and more. Jasper generates suitable blogs, marketing copy, and product descriptions, has won numerous industry awards, and is rated 4.9/5 in over 3,000 reviews across the web. 

8. Movework

Year Founded: 2016
Founders: Bhavin Shah, Vaibhav Nivargi, Varun Sigh, and Jiang Chen
Investors: Lightspeed Venture Partners, Tiger Global, Alkeon Capital, Iconiq Capital
Annual Revenue: $18.8 million
Location: Mountain View, California, USA
Company Valuation: $2.1 billion

Moverworks is a platform that provides AI-based automation solutions for IT support and helps desk operations resolve workplace requests. This startup platform helps automate IT support tasks, like fixing tickets, answering questions, and provisioning software and hardware. Various industries, including finance, healthcare, and technology, also use the platform to automate IT support.

9. ShieldAI

Year Founded: 2015
Founders: Brandon Tseng, Ryan Tseng, and Andrew Reiter
Investors: Karman Venture and Sahin Boydas, US Innovative Technology (USIT), Riot Venture, etc.
Annual Revenue: $135 million
Location: San Diego, California, USA
Company Valuation: $2.7 billion

This company is building an AI pilot called Hivemind, which enables teams of intelligent aircraft to operate on edge in high-threat environments without needing remote operators, command inputs, or GPS. The technology approach is similar to those in the self-driving car industry, which can complete missions from start to finish without an operator or pilot.

10. LandingAI

Year Founded: 2017
Founders: Andrew Ng
Investors: McRock Capital, CPP Investments, Intel Capital and others
Annual Revenue: $10 million
Location: Palo Alto, California, United States
Company Valuation: $57 million

Landing AI provides deployment-ready AI solutions to help businesses offer end-to-end workflow to build, iterate, and deploy computer vision solutions quickly and easily. Its product, LandingLens, is a data-centric AI computer vision software platform in which companies with limited data sets can realize the business value of AI and move AI projects from proof-of-concept to full-scale production.

11. StabilityAI

Year Founded: 2019
Founders: Emad Mostaque
Investors: Lightspeed Venture Partner, Coatue and Sound Ventures, etc
Annual Revenue: $16.8 million
Location: London, United Kingdom
Company Valuation: $1 billion

Stability AI is the world's leading open-source generative AI company that makes modern AI technology accessible to everyone, especially artists, designers, and anyone looking to take their creativity to the next level.

The platform developed an open-source image-generating AI model called Stable Diffusion to generate stable, high-quality images. Another innovation of stability AI is Dance Diffusion. This model can generate songs and sound effects given a text description of the songs and sound effects in question. Using cutting-edge audio diffusion technology, the Stable Audio generates high-quality music and sound effects.  

12. Viz.AI

Year Founded: 2016
Founders: Chris Mansi and David Golan
Investors: Tiger Global, Scale, Insight Partners, Greenoaks Capital Partners, GV, Threshold, Kleiner Perkins, CRV, and Innovation Endeavours
Annual Revenue: $76.6 million
Location: San Francisco, California, USA
Company Valuation: $1.2 billion

Viz.ai strives to improve healthcare by creating AI-powered software tools to reduce systemic delays between patients and life-saving treatments to make healthcare work faster and smarter. The Viz.ai automated CT scan clot detection system improves diagnostic acumen and empowers medical teams to save lives through early detection and care coordination. 

13. Grammarly

Year Founded: 2009
Founders: Max Lytvyn, Alex Shevchenkom Dmytro Lider
Investors: Baillie Gifford and BlackRock, Founders Circle Capital, Gautam Gupta, Geoff Donaker, and others
Annual Revenue: $88.7 million
Location: San Francisco, California, USA
Company Valuation: $13 billion

Grammarly is a writing assistant and proofreading tool that helps job seekers, writers, and other professionals check their written works' spelling, punctuation, grammar, and sentence structure. It helps to improve the clarity, cohesiveness, fluency, and vocabulary of a write-up. Once integrated into your device, AI-powered suggestions appear wherever you write to improve the correctness, clarity, engagement, and delivery of your writing.

14. CognitiveScale

Year Founded: 2013
Founders: Akshay Sabhikhi and Matt Sanchez
Investors: Norwest Venture Partners, Intel Capital, IBM, Westly Group, M12 (Microsoft Ventures),
Annual Revenue: $51 million
Location: Austin, Texas, United States, USA
Company Valuation: Nil

CognitiveScale is an AI startup improving the financial services industry, backed by over 100 granted AI patents. CognitiveScale sells augmented intelligence software that solves complex business problems at scale for financial services, healthcare, and digital commerce markets. The company's software helps enterprises apply AI and blockchain technology to increase user engagement, improve decision-making, and deploy self-learning and self-assuring business processes.

15. Deep 6 AI

Year Founded: 2016
Founders: Wout Brusselears and Brian Dolan
Investors: Brooks Hill Partners, Laso Ventures, Novo Holdings, Points72 Ventures, Texas Medical Center, and others
Annual Revenue: $8.4 million
Location: Pasadena, Colorado, USA
Company Valuation: $99 million

Deep 6 AI is a healthcare AI startup that improves how medical professionals diagnose and treat patients to bring life-saving treatments to patients faster. 

The AI platform helps hospitals, physicians, patients, and pharmaceutical companies analyze clinical data in the clinical trial process. It analyses large amounts of medical data, which helps medical professionals make more informed decisions and improve patient outcomes.

16. Databricks

Year Founded: 2013
Founders: Ali Ghodsi, Matei Zaharia, Reynold Xin, and Ion Stoica
Investors: Andreessen Horowitz, New Enterprise Associates, Morgan Stanley, Capital One Ventures, Ontario Teachers' Pension Plan, NVIDIA, and others
Annual Revenue: $1 billion
Location: San Francisco. California, USA
Company Valuation: $43 billion

Databricks is an open data analytics platform that allows users to build, deploy, and share data. This platform integrates with cloud storage and security, managing and deploying your cloud infrastructure without manual interference. Being a unified data platform, it helps you unify data from different sources or types, like engineering, data science, and business analytics, into a single platform. 

17. Adept AI

Year Founded: 2022
Founder: David Luan
Investors: General Catalyst, SVA, Spark Capital, Saam Motamedi, Reid Hoffman Scott Belsky, Howie Liu, Jaan Tallinn, Sarah Meyohas, Kevin Kwok, and others
Annual Revenue: $350 million
Location: San Francisco, California, USA
Company Valuation: $1 billion

Adept AI Studies how people use computers, browse the web, and navigate software to train an AI model that can turn text instructions into sets of digital actions. It takes your goals in plain language and turns them into actions on the software you use daily. 

18. Builder AI

Year Founded: 2012
Founders: Sachin Dev Duggal
Investors: ICONIQ Capital, Insight Partners, Qatar Investment Authority (QIA), and others
Annual Revenue: $185.7 million
Location: United Kingdom
Company Valuation: $455 million

Builder.AI is an AI-powered software development platform that helps small, medium, and large-scale businesses create, operate, and scale their software applications. It's designed to help companies to build any app without much technical expertise. Thus, instead of hiring developers or freelancers, they just order the app they need, and the platform builds it.

19. Label Box

Year Founded: 2018
Founders: Manu Sharma, Brian Rieger, and Daniel Rasmuson
Investors: SoftBank, Andreessen Horowitz, B Capital, Gradient Ventures, and Databricks Ventures
Annual Revenue: $11.9 million
Location: San Francisco, California
Company Valuation: $189 million

Labelbox is an AI platform that is used by businesses to curate data, generate high-quality human feedback data for computer vision, and automate tasks by combining AI and human-centric workflows. It provides fast labeling tools and collaboration features and supports any data type, like images, videos, text, etc. It is also used in the academic & research community for cutting-edge AI research.

20. Vicarious

Year Founded: 2010
Founders: Scott Phoenix and Dileep George
Investors: Founders Fund, DCVC, Steve Brown and Zarco Investment Group, Vinod Khosla; Ashton Kutcher; Aydin Senkut's Felicis Ventures; Garry Tan, etc
Annual Revenue: $9.3 million
Location: San Francisco Bay Area, California, USA
Company Valuation: N/a

Vicarious is an AI startup developing cutting-edge technology to improve machine learning and robotics. The company's AI algorithms solve complex tasks, enabling robots to perform more advanced functions. Robotic automation is changing the world economy profoundly, and this effect will only increase as we automate more.

Conclusion

The AI firms mentioned above, and other startups have taken over the face of technology, as the percentage of companies using AI adoption continues to grow as businesses see these significant impacts. Although AI takes over people's jobs, it creates new employment opportunities.

AI start-up funding has increased by 66%, on average, between 2021 and 2024. This increase within just two years is a testament to the rapid pace of innovation and market demand. As a result, the future of AI is very optimistic and will likely continue to grow.

FAQs on Top AI Startups to Look Out for in 2024

How many AI startups in 2024?

There are over 59,000 artificial intelligence companies, with over 14,700 based in the United States.

What is the largest AI funding round in 2024?

The largest AI funding in 2024 is OpenAI's $10 billion investment from Microsoft in January.

What does the future of the AI industry look like?

The future of the AI industry looks very promising. The AI market is expected to grow by $267 billion in 2027, with a 5% increase in AI funding in the first half of 2024, surpassing $31 billion in the 1st quarter of 2024.

Sources:

Tracxn

Growjo

Crunchbase

Pitchbook

Getlatka

CBinsights