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AI funding halved in UK despite ChatGPT boom

AI investment UK

Overall investment into UK-based AI companies almost halved in 2023 compared with the year prior despite the technology dominating the zeitgeist, according to new research.

Last year, 291 UK AI companies raised £1.4bn across 311 announced funding rounds, compared with the £2.9bn raised in 2022, according to an annual private equity report from Beauhurst.

The research examined equity deals for private companies in the UK from January to December 2023.

The launch of ChatGPT from OpenAI at the end of 2022 caused a surge in interest in AI technology, with many investors throwing billions at Silicon Valley’s AI giants.

The UK’s AI sector, while one of the world’s largest, still saw a drop-off in funding last year. This was due, in part, to a broader downturn in deals stemming from a challenging macroeconomic environment and rising interest rates....