US AI investment jumps 40% as Europe falls further behind

Since the pandemic, American businesses have stepped up their AI investments, pouring cash into the sector at nearly three times the rate of European firms. Oxford Economics projects that US corporate spending on new AI hardware and infrastructure will grow 40% between 2021 and the end of next year.

A Stanford AI Index report also shows that US private AI investment currently stands at 23 times China’s, with the US easily outpacing both China and Europe in generative AI funding.

However, the gap between the US and China may be smaller than the private funding figures suggest, as China’s government support has contributed an estimated $184 billion to its AI sector over the past 23 years.

Oxford Economics predicts Europe’s AI corporate spending will only increase 12%

Globally, companies are pouring massive amounts of money into AI just to keep up and protect their turf. This corporate spending spree has been building for a decade, with AI funding—including private investments, M&A, public listings, and minority stakes—exploding roughly 40-fold since 2013.

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