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The Big 5 Didn’t Binge On Startup Investments In 2024

Dec 23, 2024 - news.crunchbase.com
In 2024, the five most-valuable technology companies—Apple, Microsoft, Nvidia, Amazon, and Alphabet—were not particularly aggressive in venture investments, despite having strong financial positions. They participated in 149 startup financings of $1 million or more, a slight increase from 2023 but still the second-lowest in five years. The tech giants focused on large funding rounds primarily for artificial intelligence companies, with notable investments including OpenAI's $6.6 billion round involving Microsoft and Nvidia, Alphabet's $5.6 billion round for Waymo, and Amazon's $4 billion investment in Anthropic. However, these rounds were smaller than Microsoft's $10 billion investment in OpenAI in 2023.

Alphabet led in deal count with 87 rounds, while Apple was the least active, participating in no disclosed rounds. Nvidia, Microsoft, and Amazon were moderately active. Looking ahead to 2025, there are positive indicators for continued investment activity, such as strong cash reserves and stock prices, along with pressure to lead in AI innovation. However, participation in startup funding will depend on strategic choices, as seen with Apple's cautious approach despite its financial capability.

Key takeaways:

  • The Big Five tech companies (Apple, Microsoft, Nvidia, Amazon, and Alphabet) invested in 149 startup financings of $1 million or more in 2024, which is slightly up from 2023 but still the second-lowest in the past five years.
  • Despite not being prolific dealmakers, the tech giants participated in large funding rounds for AI companies, including OpenAI's $6.6 billion financing and Waymo's $5.6 billion round.
  • Alphabet was the most active venture investor among the Big Five in 2024, participating in 87 known rounds, while Apple did not participate in any disclosed rounds.
  • There are positive signals for increased startup investments in 2025, driven by strong cash reserves, high stock prices, and the pressure to lead in AI innovation.
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