 In June 1963 , MIT received a $ 2 @.@ 2 million grant from the newly created Advanced Research <unk> Agency ( later known as DARPA ) . The money was used to fund project <unk> which subsumed the " AI Group " founded by Minsky and McCarthy five years earlier . DARPA continued to provide three million dollars a year until the 70s . DARPA made similar grants to Newell and Simon 's program at CMU and to the Stanford AI Project ( founded by John McCarthy in 1963 ) . Another important AI laboratory was established at Edinburgh University by Donald <unk> in 1965 . These four institutions would continue to be the main centers of AI research ( and funding ) in academia for many years . 
