AI Startups Hit Record $192.7B VC Funding in 2025

Global venture capital (VC) investment in AI startups has surged to a record US$192.7 billion in 2025, according to the latest PitchBook data.

This marks the highest level of AI-focused funding ever, with artificial intelligence now dominating the global startup investment landscape. In the most recent quarter, 53.2 percent of worldwide VC dollars flowed into AI companies, underscoring investor conviction in the sector’s transformative potential.

In the United States, the concentration is even sharper, with 62.7 percent of all VC funding directed toward AI startups. The largest rounds have gone to prominent players such as Anthropic and xAI, reflecting the continued investor appetite for established AI firms developing cutting-edge models and platforms.

Key Highlights

AI startups raise record US$192.7B in 2025, per PitchBook
53.2 percent of global VC dollars now flow into AI firms
Broader VC fundraising and deal count see steep declines

However, the funding environment remains challenging for smaller or non-AI startups, many of which are struggling to secure capital in the current climate.

PitchBook’s data also highlights a steep contraction in broader VC activity. The number of startups winning venture backing has declined significantly, as has the number of funds raising new capital. So far in 2025, only 823 funds have raised over US$80 billion, compared to 4,430 funds raising US$412 billion in 2022.

Also Read: South Korea to Launch 500+ AI Industry Projects by 2030

Despite this contraction, global venture dealmaking remains substantial, with US$366.8 billion deployed across startups worldwide in 2025 to date, including US$250.2 billion in the US. The figures point to an era of capital concentration, where AI dominates VC flows even as overall fundraising and deal volume shrink.