Summary:
AI startups are projected to receive over 50% of all VC investments in 2025, a historic first.
VCs have invested $192.7 billion in AI this year, with AI making up 62.7% of U.S. VC deals in the last quarter.
Funding is heavily concentrated in major AI firms like Anthropic, which raised a $13 billion Series F.
The number of venture funds raised globally has plummeted to 823 in 2025 from 4,430 in 2022.
The market is bifurcated, favoring AI and large firms, making it tough for non-AI startups to raise capital.
AI Dominates Startup Investment in 2025
New data from PitchBook reveals a dramatic shift in venture capital, with AI startups on track to account for more than half of all VC investments this year. This marks a pivotal moment as 2025 could be the first year where AI dominates the funding landscape.
Key Investment Figures
According to Bloomberg, VCs have invested $192.7 billion into AI so far in 2025, out of a total global VC investment of $366.8 billion. In the most recent quarter, AI made up 62.7% of U.S. VC investments and 53.2% globally, highlighting its overwhelming influence.
Concentration in Big Names
Much of this capital is flowing to major players like Anthropic, which secured a massive $13 billion Series F round in September. This trend underscores a growing divide, where funding is increasingly concentrated in a few high-profile AI companies.
Decline in Broader Startup and Fund Activity
Meanwhile, the broader startup ecosystem is struggling. The number of startups and venture funds successfully raising money has hit multi-year lows. PitchBook reports that only 823 funds have been raised globally in 2025, a sharp drop from 4,430 in 2022, indicating a challenging environment for non-AI ventures.
Expert Insight on Market Bifurcation
Kyle Sanford, PitchBook’s director of research, describes the market as bifurcated, where success hinges on being in AI or being a large firm. This polarization means that if you're not part of the AI wave, securing VC funding has become significantly harder.
Comments