SparkLabs, an early investor in companies like OpenAI and Vectara, has created a new $50 million fund to back more artificial intelligence companies. The new fund is called the AIM AI Fund. It will support startups working on AI from the AIM-X accelerator in Saudi Arabia. The fund will also invest in AI startups from all over the world.
SparkLabs created AIM-X earlier this year in Saudi Arabia. It is an accelerator that helps AI startups. Saudi Arabia wants to be a leader in AI through its national AI Mission plan. This new fund shows how interest in AI keeps growing. There are now over 210 “unicorns” or startups valued at over $1 billion working in artificial intelligence globally.
The fund will use some of its money, around 35%, to support startups in the AIM-X program. The rest, 65%, will be used to invest in AI startups beyond Saudi Arabia in Series A and B funding rounds. Though some money may help startups in the Middle East area, most investments will likely go to American startups. On average, startups in the AIM-X program will get $200,000 but some could receive up to $500,000. Larger investments outside the program will be between $1-5 million. In total, the fund aims to invest in 50-70 AI companies.
SparkLabs has already invested the new $50 million fund’s first batches of startups. Fourteen companies received money so far. They work on video analytics, climate software, recruiting tools, and more. The fund looks to support more innovative AI startups that are changing various industries worldwide. This new investment signals how rapidly artificial intelligence is growing globally.
