The Power of Capital

Abstract

Artificial intelligence entered a stage of explosive growth from 2011. As of 2016, there were more than 1000 artificial intelligence companies worldwide. According to a report released by PricewaterhouseCoopers at the 2017 Summer Davos forum, artificial intelligence is expected to boost world economic growth by 14 percent by 2030, equivalent to $15.7 trillion, a figure that is higher than the combined size of the Chinese and Indian economies. According to the “State of Artificial Intelligence” report released by CB Insights in August 2017, in the preceding five years, the total amount of artificial intelligence startup financing exceeded $14.9 billion, and the total volume of transactions reached 2250. The rapid development of the artificial intelligence industry and technology has brought about a wave of financing in this field. According to statistics, “venture capital funding in the artificial intelligence sector grew from $3.2 billion in 2014 to $9.5 billion in the first five months of 2017. Since 2015, the number of investments almost doubled. The prominent business consulting company Frost & Sullivan listed artificial intelligence as the hottest investment area in 2017.” In addition to the enthusiasm of the financial markets, governments have also increased policy and capital support for artificial intelligence. They have not only used national strategies to call for increased investment in artificial intelligence but also invested heavily in key research and development projects. The flow of capital toward the artificial intelligence sector is an increasingly prominent trend across the world.