US has toppled China to take the top spot as the global artificial intelligence (AI) venture capital investment hub.
United States commanded the most AI investment values in 2018 globally at 52.3%, according to ABI Research.
Based on investment figures in 2019, the gulf between the United States and China will continue to get wider, with the U.S. share expected to reach 70%.
The growth in the US is triggered by investments from Cruise Automation, Dataminr, Zoox, and Zymergen and is further estimated to increase to US$14bn in 2019.
Meanwhile, China experienced a year-on-year growth rate of 54%, with a total of US$7.4bn.
Since 2016, AI has been of special interest in China, particularly around machine vision, which has translated into the creation of hugely successful AI startups and AI startups with large market reach and deep technology, including SenseTime, Yitu Technology, and CloudWalk. Since Chinese startups have cornered the domestic market, they are facing challenges expanding into overseas markets due to different regulations and market conditions.
Lian Jye Su, principal analyst at ABI Research said: “The United States is reaping the rewards from its diversified AI investment strategy. Top AI startups in the United States come from various sectors, including self-driving cars, industrial manufacturing, robotics process automation, data analytics, and cybersecurity. All these startups research on and invest in cutting edge deep learning technologies in their solutions, democratizing AI for enterprises and end consumers.
"There is no doubt that Chinese AI investment is feeling the pinch of reality, but China is still undeniably the largest single market for AI implementation. Favorable policies and flexible regulations in China, backed by a government willing to invest and deploy innovative technologies at scale, will certainly amplify AI adoption in the region. While the United States may be leading in investment in AI research and development, in the longer term, China will be able to capitalize on those technologies and bring them to the masses."