Summary:
North America leads AI VC funding with $69.7 billion invested in 1,528 deals from February to May this year
Despite political and regulatory challenges, the U.S. remains the dominant hub for AI investments
Europe and Asia trail behind, with $6.4 billion and $3 billion in AI VC funding respectively
North American startups secured 75.6% of all VC AI funding in 2024, increasing to 86.2% in 2025
Investors continue to favor U.S. innovation for the highest returns in the AI sector
Despite a political environment that some experts describe as increasingly hostile to AI research and development, North America continues to lead in AI venture capital investments. According to PitchBook data, between February and May of this year, VCs invested $69.7 billion in North American AI and machine learning startups across 1,528 deals. This starkly contrasts with the $6.4 billion invested in European AI ventures across 742 deals and the $3 billion in Asia-based AI startups across 515 deals during the same period.
The Political Landscape and Its Impact
Under President Donald Trump, the U.S. has seen significant cuts to scientific grants for basic AI research, increased difficulties for foreign AI students, and threats to university-housed AI labs due to frozen federal funds. These policies, along with retaliatory tariffs, have created a chaotic market that seems unfavorable for risky AI ventures. Yet, North American startups secured 75.6% of all VC AI funding in 2024, a share that has increased to 86.2% in 2025.
Europe and Asia Lag Behind
Despite the EU's commitment to becoming a global AI leader and China's high-profile AI startups like DeepSeek and Butterfly Effect, there's no significant shift in global AI investment towards these regions. Export controls affecting AI chip procurement in Asia and the lack of a mass VC exodus to Europe highlight the challenges these regions face in competing with North America.
The Unshaken Dominance of North America
The data paints a surprising picture: even with political and regulatory challenges, the U.S. remains the center for AI capital. Investors, despite the unpredictability, continue to bet on U.S. innovation for the highest returns, underscoring the region's enduring appeal in the global AI landscape.
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