AI startups in the U.S. raised $2.9 billion in Q3 2024, with Magic, Glean, and Hebbia receiving significant funding. Magic raised $320 million, Glean $260 million, and Hebbia $130 million. AI accounted for 41% of U.S. VC deals in the first half of 2024, totaling $38.6 billion. Despite challenges like high development costs, AI continues to grow, with the number of AI unicorns increasing by 22.9% last year.

Title: "a16z Backs Enterprise AI Search Potential with Hebbia" Hebbia, an AI document analysis and search service, announced a $100 million funding round led by Andreessen Horowitz (a16z). Hebbia targets specialized firms in finance and law, offering precise answers to specific queries. The enterprise knowledge search market, which predates ChatGPT, is rapidly expanding due to the AI trend. Other notable players include Guru and Degreed. Globally, investors are keen on AI search, with SoftBank partnering with Perplexity in June.

Hebbia, a New York-based startup, has raised $130 million in a Series B round from Andreessen Horowitz, Index Ventures, Peter Thiel, and GV. The company simplifies information retrieval using LLM-native productivity interfaces, partnering with major financial firms. Hebbia's "Matrix" platform allows knowledge workers to query complex internal documents with unlimited context windows. Founded in 2020, Hebbia has seen significant growth, with revenue increasing 15x and staff 5x in the past 18 months.