Recent reports state that around 70,000 AI companies exist worldwide, and estimates project a substantial market value surge from approximately $214.6 billion in 2024 to $1,339.1 billion by 2030.
There are, however, regional disparities and the choice of where to target an AI startup is an important one. The AI firm AIPRM has analysed the best countries for AI startups, looking into factors such as the number of newly funded AI companies, private investment, and hiring rates.
This analysis found the U.S. to be the best country for AI startups, boasting the largest total private investment ($335.2 billion). Singapore ranks as the second best country for AI startups and boasts the highest relative AI hiring rate (18.93 percent). The UK ranks eleventh overall in the study, having a final AI startup score of 66.41/100.
Top 10 global hotspots for AI startups were found to be:
| Rank | Country | Number of newly funded AI companies (2013-23) | Total AI private investment (in billions of USD) | Relative AI hiring rate year-over-year (2022-23) | Revenue growth of fastest growing tech companies | Final AI Startup Score (/100) |
| 1 | United States | 5,509 | $335.2 billion | 5.68% | 879% | 85.97 |
| 2 | Singapore | 193 | $6.3 billion | 18.93% | 208% | 84.36 |
| 3 | Sweden | 94 | $2.8 billion | 7.37% | 1,127% | 84.07 |
| 4 | Switzerland | 123 | $3.3 billion | -0.24% | 738% | 82.74 |
| 5 | China | 1,446 | $103.7 billion | 6.88% | 274% | 80.09 |
| 6 | Germany | 319 | $7.3 billion | 0.16% | 1,160% | 75.62 |
| 7 | Spain | 94 | $3.2 billion | 9.63% | 738% | 75.35 |
| 8 | Japan | 333 | $8.3 billion | 6.88% | 130% | 71.75 |
| 9 | France | 391 | $10.4 billion | -0.43% | 738% | 68.58 |
| 10 | India | 338 | $9.9 billon | 16.83% | 196% | 67.27 |
Each of the countries were scored based on the variables using standard score method and percent-rank method. The data was collected September 2024.
From the table, Singapore claims second place, boasting a final AI startup score of 84.36/100. Despite having a significantly lower number of newly funded AI companies (193) and private investment ($6.3 billion) than that of the US.
Following closely behind, Sweden secures third place with a healthy startup score of 84.07/100. Sweden’s AI revenue growth is an impressive 1,127 percent, as well as having a relative AI hiring rate of 7.37% – slightly higher than that of the United States. However, Sweden has among the fewest newly funded AI companies in the study, at just 94.
Switzerland ranks fourth, with a startup score of 82.74/100. Despite having a negative AI hiring rate of -0.24%, Switzerland has healthy revenue growth at 738 percent. China follows in fifth, having a final AI startup score of 80.09/100. China boasts 1,446 newly funded AI companies, however, their relative AI hiring rate is lower than that of Singapore and Sweden, at 6.88 percent.
India ranks as the tenth best country to start up in AI, with a final score of 67.27/100. India’s AI hiring rate is one of the highest in the top ten, at 16.83%. However, their revenue growth is one of the lowest in the top ten, at 196 percent.
Starting up in AI is becoming increasingly competitive, as the industry continues to develop and grow at a rapid rate.
