A new study finds Arizona is the No. 25 best state for tech startups as the AI market is projected to reach $1.3 trillion by 2032, up from $40 billion in 2022.
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Generative AI platforms, such as ChatGPT and Bard, are democratizing technology and giving tech companies outside of Silicon Valley the chance to innovate like never before. Startups across the nation are leveraging AI to reduce labor costs, automate, and develop software for pennies on the dollar. Amid this paradigm shift, some states are emerging as new hot spots for tech startups.
Appy Pie today released a study on the Best States for Tech Startups in 2023 using the most recent data from the Census Bureau, Bureau of Labor Statistics, and the U.S. Patent and Trademark Office.
Arizona’s Ranking in the Six Categories Analyzed:
- Tech Firms: No. 14 – 5% of all companies
- Tech Workers: No. 19 – 5.1% of workforce
- Patents: No. 21 – 43.7 per capita
- Public Funding: No. 23 – $160 per capita
- VC Growth Last Five Years: No. 25 – 288% increase
- Startup Survival: No. 36 – 49.2%
The best state for tech startups is Massachusetts, followed by California, Maryland, Virginia, Colorado, Washington, Oregon, Connecticut, New Hampshire, and Utah.
