UK AI Boom Record-Breaking Investment Set to Transform the Future

Big investments in areas like energy, medicine, and self-driving technology are expected to help UK AI startups raise a record $4.4 billion in 2024.

New research from HSBC Innovation Banking UK and Dealroom shows that artificial intelligence is getting a bigger share of UK startup capital.

Tech companies in the UK that use AI raised $2.1 billion in the first half of 2024. They are on track to raise $4.4 billion by the end of the year, which would be a record amount. UK AI is now worth more than $24 billion, up from 12% in 2019. Compared to 2019, it now makes up 22% of the value of tech in the UK.

The top AI rounds in the UK cover a wide range of areas, such as energy, medicine, the law, and banking. The most important round was Wayve’s $1.05bn megaround, which was for its self-driving car company. In Q2 2024, UK startups raised $5.6bn, which was 36% more than the same time last year and 47% more than Q1 2024. UK startups raised $9.4bn in the first half of the year, up from $8.1bn in the first half of 2023.

The amount of money raised this quarter (45%) came from megarounds (worth $100 million to $250 million) and mega+ rounds (worth $250 million or more), which is more than the 33% brought in in Q1. This shows that megarounds are back as an important part of UK venture capital, and it shows how important the UK AI environment is for investments in growth and new ideas.