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AI startups have captured a quarter of UK VC funding in 2024

2025-04-17 15:04:47 By

In 2024, AI startups in the UK secured a staggering 25% of all venture capital funding, amassing $15.9bn (£12.8bn), which marks a significant increase from $3.1bn (£2.5bn) just four years prior. According to the latest figures from Balderton Capital, 2024 was the second-best year for AI investment in the UK on record.

The sector's valuation has soared, more than doubling to $236.9bn (£191bn) during this period. The venture capital firm also identified 20 AI unicorns within the UK, such as Wayve, Exscientia, and Oxford Nanopore Technologies, accounting for 11% of all UK unicorns, as reported by City AM.

Despite these impressive numbers, the UK and Europe still trail behind the US in terms of investment growth. European AI startups garnered 25% of all European VC funding in 2024, totalling $13.6bn (£10.9bn), reflecting a 15% increase over the past four years.

Balderton Capital's data shows that the collective value of European AI startups doubled in four years to $508 billion, now representing nearly 15% of the tech sector's total value, up from 12% three years ago.

However, James Wise, general partner at Balderton Capital, pointed out that these results challenge the "relatively negative narrative" surrounding Europe in the AI field. He highlighted the potential for substantial fundraising in Europe, stating: "You can raise hundreds of millions (euros), even billions as a very early-stage AI company if you’ve got a breakthrough technology in Europe, just as you can in the US."

The US continues to lead in AI funding, with deeptech startups securing 33% of the country's early-stage venture capital in 2024, as per Atomico’s report. The European tech sector, meanwhile, is grappling with talent retention issues, having seen 492 tech workers migrate to the US in 2023, lured by attractive salaries at top firms like Google, Amazon, and Microsoft.

On a brighter note, Europe's AI investment isn't solely internal; US companies are increasingly scouting the continent for talent and opportunities, with European entrepreneurs behind about 10% of US startups. Yet, Europe still relies heavily on non-domestic funding, highlighting its dependency on external investment.

Despite this, the AI sector holds promise for Europe and the UK, with industry experts maintaining a positive outlook on its future prospects. Susannah Streeter, Hargreaves Lansdown’s head of money and markets, has called AI "The most exciting and fast-moving sector" and anticipates 2025 to be a "pivotal" year for its expansion.

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BT wins £1.3bn 'overcharging' class action

BT has emerged victorious in a £1.3 billion class action lawsuit after allegations that it "disproportionately overcharged" its landline customers were dismissed. The Competition Appeal Tribunal (CAT) announced today that the claim against BT was unsuccessful, concluding that "overall" the prices charged "were not unfair, and therefore there was no abuse of dominant position." The legal challenge was initiated by Mishcon de Reya, representing over three million customers, with consumer advocate Justin Le Patourel acting as the claimants' representative, as reported by City AM. The claim accused BT of levying excessive prices for "standalone" fixed voice services, particularly affecting older clientele, suggesting an abuse of market dominance, but the Tribunal found otherwise. Proceedings were certified in October 2021, prompting an appeal from BT. This landmark case was the first to test the CAT’s approach to certifying collective proceedings on an opt-out basis. Despite BT's appeal against certification being rejected by the Court of Appeal, the trial proceeded in January and concluded at the end of March. Beyond its implications for the involved parties, this case holds considerable significance for the legal industry, marking the first trial since the collective proceedings regime was established in 2015.

Not just 'shiny tech bits' – how AI could power Liverpool and its businesses to global success

We’re moving from AI hype to reality, tech leaders say – and a global event in Liverpool today heard how the city region can become a leader in AI technology that’s changing the world for the better. The city region’s first-ever AI summit brought together leaders in AI, one of the fastest-growing and most high-profile sectors in the global economy. Speakers included the UK boss of global tech giant IBM, who said Liverpool City Region was “well set to become a leader in responsible AI”. And the summit also heard from North West entrepreneurs – one of whom told BusinessLive that his firm had recently hit a key regulatory milestone that should allow it to start working in the USA. Metro Mayor Steve Rotheram said Liverpool city region needed to stay ahead of the technological curve to make sure it was ready for all future innovations and inventions. He said the summit was “about showing the world what the Liverpool City Region is all about: innovation with heart, technology with purpose and a vision of progress that leaves no one behind". And he said: “Artificial intelligence is a perfect example of this. Not the fancy algorithms - or shiny tech bit - but because, with the right guardrails in place, it can empower us to solve real problems, improve people’s lives, and build a fairer, more equitable society.” The Metro Mayor hailed the success of recent AI projects, such as Alder Hey Children’s Hospital using AI to help doctors diagnose illnesses faster, and the success of the UK’s most powerful industrial supercomputer in Daresbury at supporting innovative tech firms. He said: “Collaboration is key to all of this. That’s what makes this region special. The Liverpool City Region has a knack for punching above its weight. It’s in our DNA. When I was growing up, this was a region known for its resilience and creativity. “We didn’t just follow trends; we set them. Today, we’re taking that same spirit into the digital age. But leadership comes with responsibility. “As AI develops, we need to make sure it reflects our values of fairness, inclusivity, and sustainability. AI should empower people, not replace them. It should build trust, not breed suspicion. And it should create opportunities for everyone. “Together, we will use those ideas to cement the Liverpool City Region as a global leader in ethical, impactful artificial intelligence.” Dr Nicola Hodson, chief executive at IBM UK and Ireland, said she was proud to be in Liverpool as a Widnes native who studied at the University of Liverpool. She said: “This region’s tech sector is booming.” And she added: “There’s a real buzz here which is very exciting to see.” She explained how IBM’s AI experts had worked in fields including healthcare, where AI tech has helped speed up analysis and diagnostics to help patients get treated more quickly. She said this was an “incredibly exciting time in the UK tech industry”. And she added: “Tech is moving faster than it ever has but slower than it ever will, and we cannot afford to be passengers. “ Dr Hodson called this “one of the most transformational periods in human history” and added: “There is little doubt we are already in the age of AI.” She said: “It is clear we’re moving from AI hype to AI reality”, and that AI is augmenting – not replacing – human intelligence." She added that: “With the right governance and guardrails AI can enhance innovation and creativity." Dr Hodson said that according to McKinsey, AI could add $4.4 trillion of value annually to global GDP by 2030. And she said UK government research showed the UK’s own AI industry is expected to grow to £800 billion by 2035. She added that the city region “is well set to become a leader in responsible AI". Dr Hodson ended her speech by saying there were five key questions that people needed to ask when implementing AI to ensure it had the right guardrails and governance in place – including securing and organising data. One of the exhibitors was Antony Shimmin, co-founder of software company MyCardium AI. The Liverpool business, originally spun out of University College London, is using AI to analyse heart scans, bringing faster results for doctors and patients. Antony and his co-founders, Professor James Moon, Professor Charlotte Manisty and Professor Mark Westwood, have been working to get their technology cleared for use around the world. Mr Shimmin said from the stage that the company had now got the crucial FDA clearance it needed to operate in the USA. He later told BusinessLive: “It’s a huge milestone. It demonstrates our commitment to excellence and compliance. So our software has been clinically and technically reviewed, and the AI has been reviewed. to ensure that this does bring about the benefits that we say it does. “So it's huge for the business, allows us to sell into the States and deliver this to frontline clinicians to improve patient care and clinical outcomes.” The company, which is also working to secure UK and EU clearance, has grown organically from its base at The Spine in Liverpool’s Paddington Village, and today employs 24 people and 52 contractors. Mr Shimmin explained that MyCardium’s technology aims to “deliver more precise measurements of heart function to improve clinical decision-making and better inform patients of their conditions". It uses AI to compare and measure scans more quickly that humans could. He added: “We're much more precise than a human ruler, much faster than a human ruler. And that leads to real change in clinical outcomes and decision making.” Other summit speakers included Erika Lewis, chief executive at the national innovation accelerator Connected Places Catapult, who said her organisation had set up a base at The Spine to support local businesses. Meanwhile Northern Agenda editor Rob Parsons hosted a debate on using AI for good, with panelists including Dr Iain Buchan from the University of Liverpool.

UK fintech funding races ahead of Europe as sector looks for 2025 rebound

New figures reveal that the UK's fintech sector trailed only the US in total investment last year, despite a significant decline in funding compared to 2023 levels. While global fintech investment decreased by 20% to $43.5bn (£35.2bn), the UK secured $3.6bn (£2.9bn) in funding, surpassing the combined total of the next five European countries, data from Innovate Finance shows, as reported by City AM. Despite the downturn in new capital, industry experts anticipate a rebound in 2025. "When we've been speaking with investors, they're positive about 2025," Janine Hirt, CEO of Innovate Finance, commented to City AM. "There was a bit of dry powder there waiting, and now going forward, there's a lot more clarity as we're in a post-Budget, post Mansion House environment. There is certainty around the government, both here and in the US. " Although the UK maintained its second-place position globally, its funding decline outpaced the worldwide average, closely followed by India, which reported $2.2bn (£1.8bn) in fintech investments for the year. In 2024, major UK deals included a $621m funding round for Monzo and $267m for Zepz. However, female-led fintechs experienced a stark 78% drop in investment, garnering just $120m (£97m), or 3.3% of all UK funding. "It is a clear indication that we need to be doing more, because that is a hugely disappointing number, and we have to take action to try and increase that," Hirt stated.

Newcastle property firm iamproperty to create 100 jobs over coming months

A major recruitment drive has been opened up by Newcastle's iamproperty as it plans to create 100 jobs over the next 18 months. The Gosforth-based provider of technology for online property auctions says it will initially focus the expansion on its residential conveyancing arm, Medway Law. It is part of a move to capitalise on continued rises in auction transactions. To begin with, 20 roles are being advertised across its conveyancing and business support services. In February and March, more than 20 roles will be available for auction specialists. Bosses say the move comes on the back of demand for iamproperty's auction solution driven by buyers and sellers looking for fast sales ahead of the Stamp Duty Land Tax deadline in April. That is when the threshold band on residential properties will reduce from £250,000 to £125,000. Iamproperty, which employs 700 people, is said to be the UK's largest online residential auctioneer and reports that the number of properties sold by auction was up by 28% in December last year, compared with the year before and bidding activity was up 64%. The firm says that auctions can offer 56-day completion timescales from receipt of draft contracts, based on a standard property. Ben Ridgway, co-founder at iamproperty, said: "We’re pleased to be expanding our 150-strong team within Medway Law with these new legal roles. We know some redundancies were faced in the industry before Christmas and are keen to hear from people with experience who want to be part of modernising the property market and driving innovation. "We’re committed to making the moving process better, faster, and more secure for everyone involved, and we’re in it for the long term. We’re looking forward to welcoming successful candidates who share our vision. "The market conditions mean that auction is helping support buyers with quick sales to make Stamp Duty savings and is the current focus of our recruitment efforts. However, we will be creating opportunities in multiple areas of the business as we continue to realise our ecosystem vision to drive real change in the property market." Plans to increase headcount at iamproperty follow several years of the growth, including 2023's investment from private equity backer Perwyn in a deal believed to have topped £100m. Iamproperty was founded by Jamie Cooke and Ben Ridgway in 2009 as they spotted a gap in the market for a property auction service that benefited estate agents and buyers.

Google faces UK antitrust probe in crackdown on Big Tech dominance

The Competition and Markets Authority (CMA) has initiated an investigation into Google to determine if its search and advertising services are producing fair outcomes within the UK. Today, the watchdog declared the commencement of its inaugural "strategic market status designation investigation" under the new Strategic Market Status (SMS) regime that came into effect on 1 January this year, as reported by City AM. The inquiry will scrutinise the effects of Google’s services on UK consumers and businesses, including publishers, search engine rivals, and advertisers. With Google's search services commanding over 90 per cent of search queries in the UK, the CMA emphasised the importance of ensuring these services benefit both businesses and consumers. "Millions of people and businesses across the UK rely on Google’s search and advertising services – with 90 per cent of searches happening on their platform and more than 200,000 UK businesses advertising there," said Sarah Cardell, CMA Chief Executive. "That’s why it’s so important to ensure these services are delivering good outcomes for people and businesses and that there is a level playing field, especially as AI has the potential to transform search services." The investigation aims to guarantee that individuals enjoy access to diverse services and full control over their data, while also fostering innovative services and preventing biased content, according to the CMA. The Competition and Markets Authority (CMA) in the UK is set to initiate a probe with the objective of maintaining competitive advertisement costs, reducing consumer prices, and affording emerging enterprises an opportunity to vie with established tech entities. The CMA has indicated its intent to conclude the inquiry within approximately nine months. "It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal – for example in how their data is collected and stored," said Cardell. "And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed." This investigation is part of a wider effort to rein in big tech firms, as signified by Google's 2024 court defeat in the US over claims that it unlawfully sustained its internet search monopoly.

Tyneside tech firm Leighton moves to new city centre offices

North East software development company Leighton has relocated its regional headquarters to a prime office scheme in Newcastle city centre. Leighton, which specialises in building software products and optimising processes for customers, had been based at The Core at Newcastle Helix, but has now moved its head office to the 14-storey Bank House in Pilgrim Street. The company has taken space within the Cubo offices, the top two floors of the building that the flexible workspace provider opened up last year. Leighton reached a significant milestone as it celebrates the growth of its team to 100 colleagues following another year of sustained growth. The office – the first site for Cubo in the North East – gives members a 360-degree panoramic view of the city’s skyline. The company said it saw a 31% increase in revenue during its 2024 financial year and is set for another year of record performance at the end of the 2025 financial year, with projected growth in the double figures, through its work with customers including British Airways, Atom Bank, Equans, IAG Loyalty and Greggs. James Bunting, CEO at Leighton, said the relocation reinforces its commitment to maintaining headquarters in the North East while supporting its growing hybrid workforce, who will be able to take advantage of Cubo’s national network of locations. Mr Bunting said: “This transition marks a significant milestone for Leighton, as we continue to invest in an environment where our team and customers can come together to thrive, collaborate and innovate. Access to Cubo’s office network across the UK is important to us as it will ensure all of our team will have access to spaces where great work happens, and our culture comes to life. It also reflects our ongoing commitment to retaining a headquarters in the North East and supporting the growing tech sector in the region.” Last year the business made key strategic appointments, which included welcoming Lee Gilmore as principal solutions architect, and Clare Gledhill as chief consulting officer to lead on the company’s consultancy offering. Mr Gilmore added: “The tech sector in the North East is a growing hub and we’re only going to see more focus, business, and talent around what is already a thriving sector. It’s great to be working with like-minded individuals who are so invested in cultivating and growing the amazing talent already working in the region.”

Dyson to move workforce out of Bristol and scrap tech hub plans

Engineering giant Dyson is planning to move its workforce out of Bristol and is scrapping plans for a tech and research hub in the city - despite investing £100m in a new building. The company, best known for its bagless vacuum cleaners, will relocate 180 staff to its large campus in Wiltshire. It will mean all of Dyson's South West employees are based in one location. Dyson's Malmesbury base is home to the Dyson Institute, where 185 undergraduate and postgraduate engineers study while working for the company. The move comes despite a major investment by Dyson into a previously planned research and development hub in Bristol. The company, which currently rents office space on College Green, purchased and carried out a top-to-bottom refurbishment of 1 Georges Square in Finzels Reach last year. The £100m Bristol research centre, first announced in 2023, was expected to employ hundreds of extra AI and software engineers as well as the global tech firm’s commercial and e-commerce teams for Great Britain and Ireland. It is understood that Dyson staff will no longer move into the building, but will relocate to Malmesbury instead. The Finzels Reach office block, which is owned by the Dyson family, will be rented out to another employer. Although no date has been set for the relocation to Wiltshire, Business Live understands it will be in spring when the lease on Dyson's rented office expires. Staff members will be given support with the commute to Malmesbury, about 45-minutes' drive away. The news comes less than a year after Dyson announced plans to cut a third of its UK workforce as part of global restructuring. Dyson's chief executive Hanno Kirner said last year the review would ensure the business was "prepared for the future". The campus at Malmesbury was Dyson's head office until 2019 when founder Sir James Dyson moved the company's HQ from the UK to Singapore. The billionaire tycoon has long been a critic of the UK's economic policies and made the decision post-Brexit to move Dyson's headquarters closer to its manufacturing sites and supply chains. Asia also has a free trade agreement with the European Union. Last year, Sir James and his family were revealed to be the richest people in the West of England despite experiencing a fall in their wealth of £2.2bn over the year. According to the Sunday Time Rich List, Britain’s best-known inventor had a fortune of £20.8bn in 2024 - down from £23bn in 2023.

Transport for Wales launches new high speed internet network

Transport for Wales has launched a new full fibre high speed internet network which was installed in tandem with the South Wales Metro rail electrification project. In a UK rail industry first the transport body of the Welsh Government said its wholesale network can be reached by one million people, through new subsidiary venture TfW Ffeibr. Alexia Course, chief commercial officer at TfW said: “We’re extremely proud and excited to be launching TfW Ffeibr, to provide a state-of-the-art high-speed network for companies to use and sell within Valley communities. “We’ve been carrying out huge infrastructure works in the Valleys, electrifying the railway line as part of the South Wales Metro and this presented us with an opportunity to also build the infrastructure for a high-speed core network. “The Metro project is about physically connecting people and TfW Ffeibr is about connecting people in the digital world. At TfW, we’re fully aligned to the Well-being of Future Generations (Wales) Act and this new subsidiary business reinforces our commitment to improving the lives of people in Wales.” Guy Reiffer, managing director at TfW Ffeibr, said:“This is an industry and UK first – a rail infrastructure project that has diversified and utilised its construction to also install a high-speed, full fibre internet capable network. “We’re excited to launch and we’re looking forward to working with teleco companies to provide big-bandwidth full fibre internet for communities that are harder to reach. “For people living in the Valleys, high-speed internet enabled by our core fibre offering will open up lifestyle and business opportunities.” As well as reaching around one million people, TfW Ffeibr is currently accessing the number of business that could utilise the network., which is though accessible to many of the region's business parks. TfW Ffeibr is currently talking to a range of internet service providers and telecommunication (telco) companies over commercial use of its wholesale network. It said: “This will be either to connect towns and villages where an internet service provider is building out those towns or to connect businesses for those internet service providers or telcos, We cannot comment on individual discussions at this stage.” For those using the network TfW Ffeibr will charge a connection fee and for the distance provided. It declined to comment on projected revenues in its first three years. TfW wouldn't disclose the cost of installing the fibre on the Metro network. The bill for electrifying the Core Valley Lines, along with part of the City Line and the Coryton Line in Cardiff, will come in at just over £1bn. Moreover, alternative full fibre teleco, Ogi, has installed a new full fibre leased line connection at Cariff City FC’s training centre at Hensol in the Vale of Glamorgan. The new infrastructure is already boosting the club’s ability to process performance data in real time during training sessions. Ogi is already a well-known name in sport, with Cardiff Rugby, Parc y Scarlets, and the home of Welsh rugby, the Principality Stadium, among its customers. It also has sponsorship deals with Haverfordwest County AFC and the community-owned Merthyr Town FC. Ogi’s chief executive, Ben Allwright, said: “As a big football fan, I’m delighted to see Ogi supporting our home city club, Cardiff City. There’s a real sense of community among City’s supporters – and this plays to our community-centric ethos here at Ogi too. “Bringing our connectivity to the Bluebirds’ training base has the potential to help the teams develop their game and I’m very excited to see how increased access to real time analytics plays out on the pitch.” Huw Warren, head of commercial at Cardiff City FC, said: “Ogi is a strong signing and welcome addition to the Cardiff City family. They’re a Welsh brand making huge strides across the country right now and the support they’ve given since our partnership started has been exceptional. “Ogi’s full fibre technology enables us to do things faster and more efficiently, accessing data in the split seconds that matter on the pitch.

County Durham firm braves Dragons' Den in bid to secure investment

A County Durham couple will become the latest regional business to brave the Dragons’ Den this week. Zara Paul and Aaron Morris are the founders of Choppity, a Belmont Business Park company behind a web-based AI video editing platform which is set to appear on the new series of the BBC pitching programme on Thursday in a bid to secure investment for their start-up. The co-founders and married couple only launched Choppity in 2023 with a vision to simplify the video-editing process for podcasters and businesses. The platform, which was founded in Durham, is already used in production by companies including ITN, Autotrader, Turtle Bay, and Sonatype, with features including AI subtitles, in which Choppity instantly adds subtitles to podcast clips, and Magic Reframe, which instantly turns a landscape podcast into a portrait or square one to make sure every speaker’s face can be seen. Before taking on the Dragons, the pair said their number one target for investment was entrepreneur and host of one of the world’s most listened-to podcasts, Diary of a CEO, Steven Bartlett. Zara proudly represents the LGBTQ+ community as an openly non-binary contestant, and said the experience was “important and deeply personal”. Zara said: “It was an unforgettable moment to be in that room, presenting something we’ve worked so hard on. The setup felt incredibly stripped back - just the two of us and a screen in front of the five established entrepreneurs. It was both nerve-wracking and exhilarating. “The startup world, and the media more broadly, often feel bare of LGBTQ+ representation, especially for gender non-conforming and trans founders. I hope this moment inspires others to pursue their ambitions and know they belong here too.” In a LinkedIn post the firm said: “After months of secrecy, we’re so excited to finally reveal the news. Watch the episode this Thursday 16th January, 8pm on BBC 1 to find out what the Dragons thought of Choppity. For those that have been following our company’s journey for a while, I hope you have fun watching this episode! “We’re extremely grateful for the opportunity to showcase Choppity on a national stage. To all of our users, customers and supporters, thank you for helping us get here.”

2025 predictions for Apple, Amazon, Meta, Tesla and other tech titans - what to expect

The 'Magnificent Seven' tech giants, namely Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta and Tesla, saw a combined growth of 63 per cent in 2024, building on the strong performance of 2023. Deutsche Bank disclosed that these companies generated more profit in 2024 than most national stock markets, as reported by City AM. However, JP Morgan has predicted a decline in their contribution to S&P 500 earnings growth from 75 to 33 per cent in the coming year, indicating potential challenges. Will they maintain their market dominance this year? Here's an analysis of their prospects for 2025: Apple, a much-loved brand, reported robust sales in 2024, with its privacy features and ecosystem retaining customer loyalty. However, service growth fell short of expectations, and innovation in hardware seemed subdued. Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, suggests that the company's focus on AI could steer it in a new direction in 2025. Despite a five per cent cumulative revenue growth over the past three years, the consensus is for seven per cent growth in 2025, keeping expectations high. However, its stock has only risen 41 per cent over the past three years, underperforming the 51 per cent increase in the information technology index. Microsoft, meanwhile, cemented its place at the heart of the AI revolution in 2024, with Azure revenue up by 34 per cent, as per Streeter. The integration of AI tools like Copilot across its software suite has impressed analysts. In the forthcoming year, cloud computing competition and increased regulatory scrutiny could challenge its growth trajectory, yet the discontinuation of Windows 10 support might trigger an upgrade cycle, according to Dan Niles, founder of AlphaOne Capital Partners. He recently expressed on LinkedIn that the termination of Windows 10 "could also lead to some upgrades in their core PC business while a ramp in AI PC demand is a hope for some point in the future". Amazon's Cloud AWS remained a key growth driver in 2024, with a 19 per cent revenue increase as global AI adoption soared. E-commerce margins saw a rebound following the company's cost-reduction strategies. Streeter noted, "margins have recovered after the huge cost-saving drive with worldwide layoffs." Amazon may emerge as the top performer for 2025, having surpassed both revenue and margin expectations in the latest quarter. However, Nile pointed out the potential for a challenging start to 2025 due to uncertain consumer spending patterns, fewer shopping days, and less favourably timed holidays. For Meta, the tech behemoth's strategic downsizing yielded positive results in 2024, evidenced by a five per cent increase in daily active users. Its investment in AI has improved ad targeting and content curation, bolstering advertiser trust. Yet, the question remains whether Meta can maintain its growth momentum into 2025 without the previous year's tailwinds from political elections or major events like the Olympics, which had contributed to heightened user engagement. "If its revenue doesn’t keep up", warned Streeter, "margins may come under pressure, deterring its investors". Alphabet, the parent company of Google, also posted strong results in 2024, driven by its cloud business and AI advancements. However, the ongoing case by the US Department of Justice against Google’s search monopoly casts a shadow over the firm’s 2025 outlook. Sundar Pichai, the Chief Executive, highlighted the importance of utilising AI to accelerate progress and solve real-world problems. The company made headlines towards the end of 2024, as Pichai prepared his employees for an important, "pivotal" year ahead, while also alerting them to potential challenges. Tesla begins to lose momentum. Tesla experienced a surge of optimism in 2024, with its stock increasing by 63 per cent, partially due to Elon Musk’s advisory role in the Trump administration. However, a decrease in EV demand and the potential loss of tax credits in 2025 could impact the company’s sales. Therefore, Tesla's ability to scale production of its affordable electric vehicles and expand self-driving capabilities will be crucial for 2025. Nvidia was largely the leader of the Magnificent Seven group in 2024, overtaking Apple as the world’s most valuable company with its shares rising by 171 per cent amid surging AI demand. Despite taking a slight hit at the end of 2024, according to Investopedia, the firm’s sales and earnings flourished. Moreover, Nvidia's Blackwell super chip and dominance in AI infrastructure are positioned for continued growth in 2025.