Venture capital funding for generative AI startups accounts for 40% of all cloud funding, according to Accel’s annual Euroscape report. Cloud startups in the U.S., Europe, and Israel are projected to raise nearly $80 billion this year, with AI driving much of this growth. Venture funding into the cloud sector grew 27% year-over-year, reaching over $60 billion. OpenAI led funding, followed by Anthropic and Elon Musk's xAI. U.S.-based generative AI firms received 80% of the total $56 billion raised globally in the past year.