Stanford University: Picture Changed by Generative AI; OpenAI to Google DeepMind invests billions

• On the US-China Front, India Moves Fast
• 335 billion dollars invested in AI by the end of 2024
• 40% new investment to generative AI

Stanford University: Over the past five years, Artificial Intelligence (AI) has emerged as one of the fastest growing sectors of the global economy. According to the latest figures from Stanford University’s AI Index Report 2025 and CB Insights, global private and government investment in AI will grow by nearly 480% between 2020 and 2024, reaching $335 billion. The US and China remain the largest investors, while countries such as India, the UK, Germany and France are rapidly strengthening their presence.

According to the Stanford AI Index, global AI investment was approximately $58 billion in 2020, rising to approximately $335 billion by the end of 2024. These include private equity, venture capital, corporate R&D and government funding. Investment increased rapidly in 2023 and 2024, particularly after the rise of generative AI, with billions of dollars poured into companies such as OpenAI, Anthropic, Google DeepMind, and Microsoft. According to CB Insights and Pitchbook, generative AI startups received more than $70 billion in funding globally in 2024, which is more than the total AI funding in 2020.

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According to the report, the US accounted for about 55% of global AI investment. America’s lead is further strengthened by massive research and development spending by companies such as Microsoft, Google, Amazon and Nvidia. China is second with approximately 20%. India emerged as the third fastest growing market in terms of investment. According to UNCTAD and Peachbook, AI investment in India has grown by 600% between 2020 and 2024.

According to the Stanford AI Index 2025, roughly 40% of total new investment went to companies involved in generative AI. Chatbots, image and video generation, healthcare AI and automation tools attracted the most investor attention. Microsoft’s over $1 billion investment in OpenAI and Amazon and Google’s cloud based AI strategies are prime examples of this trend.

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According to the UNCTAD report, AI investment is no longer just a technological competition, but also an indicator of financial and strategic strength. The US and China see it as important for future productivity, military capabilities and global influence, while India and Europe are promoting it as a tool for the digital economy and job creation. Experts believe that if the current pace continues, the global AI market could reach nearly $1 trillion by 2030.