AI Investing Trends

How Accredited Investors Are Using Reg D to Get in Earlier on AI Companies

Private markets are having a moment. More investors are chasing early access to high-potential companies in surging industries, particularly artificial intelligence (AI). The UN projects that AI will grow into a “dominant frontier technology,” potentially becoming a $4.8 trillion market by 2033.¹

That’s probably why VCs poured half (50.8%) of their funding into AI-focused companies in 2024, to the tune of $131.5 billion invested.² That trend isn’t slowing down anytime soon. Between February and May 2025, VCs invested $76.1 billion across 2,270 deals for AI and machine learning startups.³

And yet, these deals (and potential gains) have largely been out of reach for everyday accredited investors — until now. StartEngine Private has flipped the script, providing accredited investors with exposure to popular pre-IPO companies in the AI space, including OpenAI, Perplexity, and Databricks.⁴

In this piece, we’ll break down the major trends driving the AI boom, from the rise of generative AI, to the infrastructure powering it, to the real-world applications gaining traction. Along the way we’ll spotlight the kinds of high-potential companies in each category that have been offered on StartEngine Private.

The following content is for informational purposes only and does not constitute an offer, solicitation, or recommendation to invest in any securities. Private investments are speculative, illiquid, and involve a high degree of risk, including the potential loss of your entire investment. Past performance is not indicative of future results.

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Generative AI

Generative AI (GenAI) is exploding, and the AI search wars are officially on. According to S&P Global, the GenAI market is on track to hit $85 billion by 2029, growing at a 40% CAGR starting next year.⁵ And between 2020 to 2024, the number of GenAI companies pulling in $10M+ in revenue nearly doubled.⁵

Search is quickly becoming the main battleground. From code generators to AI-native search engines, these companies are shaping not just the future of AI, but the future of how we access, understand, and use information.

Through StartEngine Private, accredited investors have gained exposure to some of the biggest names in the space: ⁴

• Series Anthropic
• Series OpenAI
• Series Perplexity
• Series xAI

Want to see what other AI companies are available on StartEngine? Click here.

Investing in private securities carries significant risks, including but not limited to illiquidity, lack of dividends, dilution, and potential loss of principal. These investments are not suitable for all investors. Always conduct your own due diligence and consult with a licensed financial professional before making any investment decisions.

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AI Hardware & Infrastructure

GenAI may get the headlines, but AI infrastructure is the unsung hero powering the revolution. Because you can’t have a gold rush without the picks and shovels. From advanced chips and custom silicon to edge computing and hyperscalers, the entire AI stack is evolving at lightning speed.

The market for GenAI chips alone surpassed $50 billion in 2024, and the broader AI chip market is forecasted to reach up to $400 billion by 2027.⁶ Unsurprisingly, data center compute capacity is expected to double by 2027, and specialized hardware is leading the charge.⁶ We're talking about a new wave of AI-specific accelerators designed to handle the massive workload demands.

The result? Startups and giants alike are racing to build smarter, faster, and more efficient systems. And yes, some of the most exciting companies driving this behind-the-scenes transformation have shown up on StartEngine Private:  ⁴

• Series Cerebras
• Series Databricks
• Series Groq
• Series Lambda Labs
• Series Lightmatter

Want to see what other AI companies are available on StartEngine? Click here.

Investing in private securities carries significant risks, including but not limited to illiquidity, lack of dividends, dilution, and potential loss of principal. These investments are not suitable for all investors. Always conduct your own due diligence and consult with a licensed financial professional before making any investment decisions.

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AI Applications

AI isn’t just transforming one industry —it’s coming for all of them. From finance to healthcare to manufacturing, AI is showing up everywhere, turning legacy workflows into high-efficiency machines.

That disruption could add a jaw-dropping $15.7 trillion to the global economy by 2030, thanks to gains in productivity, personalization, and automation across sectors like retail, logistics, and even agriculture.⁷

But success depends on how and where companies put AI to work. That’s causing demand for enterprise AI solutions that address specific pain points. Think AI-powered diagnostics in healthcare, predictive maintenance in manufacturing, and autonomous decision engines in fintech.⁸

And at StartEngine Private, we’ve offered exposure to a number of these future-forward companies:⁴

• Series Attentive
• Series Avathon
• Series DataRobot
• Series Glean
• Series Outreach
• Series Recogni
• Series Replit
• Series Shield

Want to see what other AI companies are available on StartEngine? Click here.

Investing in private securities carries significant risks, including but not limited to illiquidity, lack of dividends, dilution, and potential loss of principal. These investments are not suitable for all investors. Always conduct your own due diligence and consult with a licensed financial professional before making any investment decisions.

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GenAI, Chips, & Real-World Wins: The Future of AI Investing

The AI boom isn’t slowing down, and neither is investor interest. From generative breakthroughs to infrastructure leaps to real-world applications that are already reshaping industries, AI is delivering on its promise of transformation.

And thanks to StartEngine Private, accredited investors now have the chance to get in on the action early, gaining exposure to pre-IPO companies that are helping define the future of this potential $15+ trillion opportunity.⁷

To learn more about how these offerings are structured — and to review full risk disclosures and other important information — please visit startengine.com/private.

DISCLAIMERS & SOURCES

1. Source: UN Trade & Development, “AI Market Projected To Hit $4.8 Trillion by 2033, Emerging As Dominant Frontier Technology,” Press Release, April 7, 2025

2. Source: Alex Irwin-Hunt, “AI Dominates Venture Capital Funding in 2024,” fDi Intelligence, January 8 2025

3. Source: Kyle Wiggers, “North America Takes the Bulk of AI VC Investments, Despite Tough Political Environment,” TechCrunch, June 4, 2025

4. The underlying companies held by StartEngine Private Funds LLC, and StartEngine Private LLC (together, “StartEngine Private”) are not participating or involved in the offering. The availability of company information does not indicate that the company has endorsed, supports or otherwise participates with StartEngine Private or any of its affiliates. StartEngine Crowdfunding LLC purchases shares from current and former employees, early investors, and advisors of the companies and sells the shares to StartEngine Private for each offering. When you make an investment in a company on StartEngine Private, you are purchasing an interest in a series of StartEngine Private Funds LLC or StartEngine Private LLC, each a Delaware limited liability company (together the “Series LLCs”), which were created to hold shares of privately held companies. An investor will not directly own or hold shares of the private company but instead will own member interests in a series of the Series LLCs, which either directly or indirectly, will hold shares in the company. There may not be a one-to-one economic parity on the value of the Series LLCs interests and the underlying shares.

5. Source: S&P Global, “Generative AI Market Revenue Projected To Grow at a 40% CAGR From 2024–2029,” S&P Global Market Intelligence, June 3, 2025

6. Source: Kelly Raskovich, et al., “Hardware is Eating the World,” Deloitte, December 11, 2024

7. Source: PwC, “PwC’s Global Artificial Intelligence Study: Exploiting the AI Revolution,” PwC Global, Accessed June 10, 2025

8. Source: Chris Howard, “For AI Value, Focus on Your Use Cases,” Gartner, January 17, 2025

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