Venture Capitalists hoped that AI would reverse the global funding slowdown in Q2, but it was not enough to stop the decline 

Global venture funding fell 18% in Q2 2023 to $65 billion, according to Crunchbase data. This is a 49% decrease from the second quarter of 2022, when investors spent $127 billion.

The first half of 2023 was also down significantly, with total funding reaching $144 billion. This is a 51% decrease from the $293 billion invested in H1 2022 and a 10% decrease from the second half of 2022.

The slowdown in venture funding can be attributed to a number of factors, including rising interest rates, inflation, and geopolitical uncertainty. However, the AI sector bucked the trend, with nearly a fifth of total global venture funding coming from AI-driven companies.

This is likely due to the continued interest in AI from corporate investors, such as Microsoft, Nvidia, and Google. Additionally, the acquisition of language model training platform MosaicML by data warehouse company Databricks is a sign that the AI sector is still maturing.

Overall, the global venture funding landscape is facing some headwinds. However, the AI sector is showing signs of resilience. It is possible that the AI sector will continue to grow in the coming quarters, even as the overall venture funding market slows down.