From $44.89 billion in 2023 to $66.62 billion by the end of 2024, the global market for artificial intelligence is predicted to grow by an astounding 48.4% annually.
The generative AI market is expanding rapidly; by the end of 2024, it is projected to have a global market value of $66.62 billion, up from $44.89 billion in 2023—a startling 48.4% year-over-year increase. With generative AI solutions already being used by 92% of Fortune 500 companies, their broad adoption across industries is the driving force behind their quick expansion.
Numerous American-based firms are becoming the front-runners in the battle for generative AI as the market keeps changing at an accelerated rate. In 2024, keep an eye on these rapidly expanding generative AI startups:
- Anthropic
Anthropic, a prominent player in generative AI, was founded in 2021 by former OpenAI employees, including CEO Dario Amodei. With its Claude family of language models, the San Francisco startup competes against industry titans while concentrating on creating safe and dependable AI systems. Significant investments have been made in Anthropic, including up to $4 billion from Amazon and $2 billion from Google. Under Amodei’s direction, the business uses cutting-edge strategies like “Factored Cognition” and “AI Safety via Debate” to highlight AI safety and transparency. Amodei, who holds a PhD in physics from Princeton, contributes invaluable experience to help Anthropic in its goal of integrating strong AI systems with moral principles.
- Perplexity
Perplexity is a fast-growing AI-powered search engine and question-answering platform that was co-founded in 2022 by CEO Aravind Srinivas. With over 10 million active users per month and $165 million in funding—worth over $1 billion—the company has shown growth. Leading the effort to transform online information retrieval is Srinivas, a former AI researcher at OpenAI and doctorate holder in computer science from UC Berkeley. Unlike other search engines, Perplexity’s AI delivers precise, accurate responses to inquiries.
- Hugging Face
Hugging Face, an innovative artificial intelligence startup founded in 2016 by Clément Delangue, is well-known for its open-source machine learning platform. In his capacity as CEO, Delangue oversaw the creation of the popular Transformers library, which makes the implementation of cutting-edge NLP models easier. Hugging Face has raised a substantial amount of capital under his direction, including a $235 million Series D financing in 2023 that will value the business at $4.5 billion. In line with Delangue’s goals of democratizing AI and establishing a cooperative society, Hugging Face will serve as a global hub for AI developers and researchers.
- AssemblyAI
AssemblyAI, the rapidly expanding artificial intelligence business with a focus on speech recognition and natural language processing technology, was founded in 2017 by Dylan Fox. In his capacity as CEO, Fox has spearheaded the creation of state-of-the-art APIs with features like content filtering, speaker diarization, and sophisticated speech-to-text transcription. AssemblyAI has drawn big clients from a variety of industries and won substantial financing under his direction, including a $30 million Series B round in 2022. Fox’s goal with AssemblyAI is to provide developers and companies with robust AI tools so they can quickly incorporate cutting-edge speech AI into their applications and workflows. The business is now a global leader in speech AI thanks to its creative strategy and excellent APIs.
- Abridge
Abridge was founded in 2018 by Dr. Shivdev Rao, the CEO, Florian Metze, and Sandeep Konam. Its purpose is to transform clinical conversations into structured medical documentation The Pittsburgh-based firm reduces the amount of paperwork that healthcare providers have to do by using sophisticated generative AI to turn patient-clinician interactions into real-time clinical notes. Abridge has raised $212.5 million in funding to advance its AI capabilities under Dr. Rao’s direction. As a practicing cardiologist, Dr. Rao’s vast healthcare and technological experience propels Abridge’s goal of enhancing patient care and clinical effectiveness.
- Harvey
Harvey, an AI startup founded in 2022 by Winston Weinberg and Gabriel (Gabe) Pereyra, specializes in legal technology. The startup offers AI-powered tools for legal departments and law firms by utilizing OpenAI’s GPT technology. Harvey has raised $80 million in Series B fundraising, valued at $715 million, under CEO Pereyra’s direction. Former DeepMind research scientist and Meta AI engineer Pereyra hopes to transform legal workflows, and big businesses like Allen & Overy and PwC are already implementing Harvey’s ideas.
- Observe.AI
Observe.AI, an AI-driven conversation intelligence platform, was founded in 2017 by Swapnil Jain with the goal of improving contact center effectiveness. The business offers agents mentoring and real-time information by analyzing 100% of consumer calls. With $213 million in investment and more than 150 clients, such as Root Insurance and Tripadvisor, Observe.AI is a major force in revolutionizing customer support operations. Leading the company’s expansion is Jain, who has experience with both Google and Twitter products.
- Read AI
Read AI was founded in 2021 by David Shim and provides AI-generated highlights, transcripts, and summaries for emails and communications to increase productivity. The company is based in Seattle and has raised $21 million in Series A funding. Shim, the former CEO of Foursquare and founder of Placed, hopes to increase workplace efficiency through smooth integration with Zoom, Microsoft Teams, and Google Meet.
- Prosimo
Prosimo, a company led by CEO Ramesh Prabagaran and founded in 2019, is revolutionizing multi-cloud infrastructure with its Application Experience Infrastructure (AXI) platform. The business uses public cloud infrastructure to streamline and safeguard the delivery of multi-cloud applications under Prabagaran’s direction. Prosimo is influencing cloud networking and security with accolades like the 2021 Networking Trailblazers Award.
- Atomic AI
Atomic AI, established by Raphael Townshend in 2021, is a leader in RNA drug discovery. Deep learning is used by the company’s platform to find and create RNA-targeted small compounds and RNA-based therapeutics. Townshend’s expertise in structural biology and artificial intelligence, coupled with $35 million in Series A funding, powers Atomic AI’s effort to discover novel cures for illnesses that were thought to be incurable.
- Hebbia
Hebbia is an AI-powered search engine that was founded in 2020 by George Sivulka. Its semantic search capabilities across document collections revolutionize knowledge work. Hebbia has raised $30 million in Series A finance under Sivulka’s direction. The company’s AI effectively extracts insights from complex data, increasing productivity in industries like finance and law.
- EvolutionaryScale
EvolutionaryScale is a 2023 startup led by CEO Alex Rives that creates AI for biology, such as the ESM3 protein language model. Rives’ background as the head of Meta’s AI protein team, along with $142 million in seed funding, powers the company’s ambition to transform environmental science and medicine discovery.
- AKASA
AKASA, led by CEO Malinka Walaliyadde, was established in 2019 and uses AI to simplify revenue cycle management for healthcare providers. The healthcare industry’s operational efficiency is enhanced and financial complexity is decreased by the company’s Unified Automation platform. Former Andreessen Horowitz associate Walaliyadde is in charge of AKASA’s effort to use AI and machine learning technology to revolutionize hospital operations.
14. Suno
Suno is a 2022 startup led by CEO Mikey Shulman that uses artificial intelligence to create tunes based on text prompts. Notwithstanding legal obstacles, the business has landed big funding and collaborations with big digital firms. Holding a PhD in physics from Harvard and experience at the MIT Sloan School of Management, Shulman spearheads Suno’s effort to overcome copyright issues and democratize music creation.
15. Frame AI
Frame AI is a 20116 startup led by Founders: George Davis, Brandon Reiss, Jessie St. Charles, et al., which focuses on leveraging AI technology to monitor and enhance interactions to improve the customer experience for companies and other entities. When interacting with business entities, the technology evaluates and configures about thirty criteria to determine the level of customer experience and interaction quality. It makes recommendations for enhancements that boost customer satisfaction while streamlining profitability and efficiency.
