In 2024, the Bay Area dominated global venture capital (VC) funding, attracting $90 billion, or 57% of the total $178 billion. Key players included OpenAI, Databricks, and Elon Musk’s xAI, which collectively raised substantial amounts. This success is attributed to the region's strong AI presence, established startup ecosystem, and concentration of skilled engineers, reinforcing its status as the premier location for venture-backed startups despite concerns about San Francisco's decline.