The Bay Area has traditionally attracted the most venture capital for AI startups, home to major players like OpenAI, yet the Greater L. A. area is emerging as a significant contender. In Q3, L. A. set a record with $1. 8 billion in venture capital for AI companies across 31 deals, becoming the second-largest market for AI investments. This surge was largely due to a $1. 5 billion funding round for Anduril Industries, a Costa Mesa-based defense tech company planning to use the funds for expansion and development. L. A. , often dubbed "Silicon Beach, " is striving to be a tech hub, with AI potentially boosting its tech ecosystem, particularly in manufacturing, entertainment, and healthcare. The area benefits from local talent and networking opportunities.

Significant healthcare-related investments include Regard, with $61 million for its AI clinical insights platform, and Pearl, which raised $58 million for AI tools to read dental X-rays. Pictor Labs, an AI startup from UCLA, secured $30 million to advance pathology lab processes. Globally, AI deals rose to 1, 245 in Q3, showing strong investor interest despite a general decline in venture deals. In the U. S. , 68% of global AI funding was captured, with Silicon Valley receiving half of that. Meanwhile, Hollywood is exploring AI's impact on entertainment, highlighted by the AI-centric Culver Cup film competition in Culver City. AI's potential, particularly in L. A. 's strong sectors like entertainment and aerospace, is drawing increased investment over the past two years. Local leaders like Todd Terrazas from FBRC. ai emphasize the city's unique positioning to foster new AI developments, leveraging its prominence in key industries.