Artificial intelligence startups have drawn a record $192.7 billion in venture capital so far this year, according to new data from PitchBook. The figure makes 2025 the first year in which more than half of global venture funding has gone into a single sector.
Most of the capital has flowed to established players such as Anthropic and xAI, which both closed multi-billion-dollar rounds this quarter. Early-stage startups and non-AI firms, meanwhile, are finding it harder to raise funds as investors narrow their focus to proven companies in the AI space, Bloomberg first reported.
“Everywhere we look, the market is bifurcated,” said Kyle Sanford, PitchBook’s Director of Research. “You’re in AI, or you’re not. You’re a big firm, or you’re not.”
PitchBook’s data shows that U.S. venture capitalists directed 62.7% of their investments this year toward AI-related companies, while global investors allocated 53.2%. In total, worldwide venture deals have reached $366.8 billion, with the U.S. accounting for $250.2 billion.
The surge just shows how central AI has become to global innovation, spanning sectors from healthcare and finance to manufacturing and robotics. But the broader venture capital market remains weak. The total number of companies securing funding in 2025 is projected to be the lowest in years, and only 823 venture funds have raised about $80 billion—down sharply from 4,430 funds raising $412 billion in 2022.
Sanford said the pullback reflects “growing investor caution” amid a slow IPO market and limited merger activity. “Backers of venture funds are being more deliberate about where they’re putting their money,” he added. “And they’re focusing it on AI.”
Despite concerns over potential overvaluation, investors remain confident that AI’s long-term impact will justify current levels of investment.
