Recent years have witnessed an impressive growth of the artificial intelligence industry, with companies from different sectors utilizing AI technology to improve their efficiency, quality, and speed.

The surge of the entire market has been followed by the growing number of AI startups looking to expand their business by attracting investments or series funding.

According to data presented by BuyShares.co.nz, artificial intelligence startups raised $9.9bn in the second half of 2020, 15% more compared to the same period a year ago.

$17.7B Funds Raised in 2020, Despite the COVID-19 Crisis

Artificial intelligence technologies have transformed business processes across different industries, changing how companies manufacture, gather and analyze data or manage their finances.

As the algorithms and data-driven methods continue to develop, venture capitalists are increasingly willing to invest in AI startups they believe could be the winners in the emerging era of computing.

By the end of 2015, artificial intelligence startups raised $5.5bn in cumulative funding, revealed the Crunchbase data. This figure soared by almost 600% to $37.8bn in the next three years.

Statistics show that 2019 witnessed $19.3bn worth of funding rounds, the highest annual value so far.

However, the COVID-19 crisis triggered a sharp fall in funding activities, with AI startups raising $7.7bn between January and June, a 30% drop year-over-year.

By the end of the third quarter of 2020, the cumulative value of funding hit $69.6bn, a $4.7bn increase in three months. Statistics show AI startups raised another $5.2bn between September and December, 40% more than the same period a year ago, with the cumulative value of funding reaching $74.8bn.

Relativity Space`s $500M Worth Funding Round the Biggest Investment in 2020

Analyzed by the value of raised funds, Relativity Space`s Series D funding round led by Tiger Global Management is the most valuable investment in 2020. Last month, the US rocket builder and 3D-printing specialist raised $500 million of fresh capital, increasing its valuation to $2.3bn.

The company is building the first iteration of its Terran 1 rocket by using multiple 3D-printers, all developed in-house. The rocket is designed to have about 95% of its parts be 3D-printed, making it less complex and faster to build or modify than traditional rockets.

Earlier this month, a self-driving trucks startup TuSimple closed a $350 million worth Series E funding round, the second-largest investment in 2020. The round led by VectoIQ LLC included investors like Goodyear, Union Pacific, CN Rail, U.S. Xpress and retailer Kroger.

Statistics show that Zymergen`s $300 million worth Series D funding round represents the third-largest investment in 2020. The US biotechnology company specialized in machine learning, big data, and artificial intelligence explained it would use the funds to speed up manufacturing its first commercially available product Hyaline, a revolutionary bio-generated specialty film in the polyimide family.