Venture capital investment in Generative AI (GenAI) is set to exceed $45 billion globally in 2024, nearly doubling the $24 billion invested in 2023.

This surge in investment represents a significant increase from $8.7 billion in 2022, highlighting the sector's rapid growth trajectory.

By the end of November 2024, there have been over 1,050 separate investments in GenAI, reflecting heightened investor interest.

Key funding rounds in 2024 include OpenAI's $6.6 billion in October, Mistral AI's $651 million in June, and Waymo's $5 billion in July.

Future investment is expected to rise, driven by factors such as high customer AI adoption, innovation in AI hardware, and decreasing costs of foundation models.

The report highlights the emergence of vertical AI targeting specific industries, such as fintech for fraud detection and biopharma for drug discovery, which are attracting significant investment.

North America remains the dominant region for GenAI investments, accounting for over 85% of deal value and 70% of deal volume.

While Europe and the EMEA region are trailing behind North America in investment volume and value, they are home to notable GenAI unicorns like Mistral AI and Poolside from France.

Ireland is viewed as a potential GenAI hub due to its strong technology ecosystem, business-friendly policies, and available talent, despite currently limited VC investment in the sector.

To remain competitive, Ireland must enhance support for local AI startups and ensure it retains its advantages in talent, education, and economic stability as the GenAI market evolves.

The average deal size for late-stage GenAI investments has surged from $48 million in 2023 to $327 million in 2024, indicating a shift towards more established companies.

The total customer base for GenAI is projected to grow from $40 billion in 2022 to €1.3 trillion by 2032, indicating substantial market potential.