New data from PitchBook illustrates how dramatically artificial intelligence is dominating startup investment. The current trends indicate that 2025 is on track to become the first year in which AI accounts for more than half of all venture capital money invested.
According to the report, venture capitalists have poured 192.7 billion dollars into the AI industry so far this year. This substantial figure represents a significant portion of the total 366.8 billion dollars in global venture funding.
The concentration of capital in AI is particularly striking in the most recent quarter. During that period, AI accounted for 62.7 percent of the money invested by United States venture capitalists and 53.2 percent of the capital deployed by global firms.
A large portion of this investment is flowing to established, marquee names. For example, Anthropic announced a 13 billion dollar Series F round in September. This trend is occurring alongside a broader contraction in the venture landscape. The number of startups and venture funds successfully raising money has fallen to its lowest level in years. PitchBook notes that only 823 funds have been raised globally in 2025 so far, a sharp decline from the 4,430 funds raised in 2022.
PitchBook’s director of research, Kyle Sanford, described the market as becoming bifurcated. He explained that the current environment is creating a clear divide where a company is either in AI or it is not, and it is either a large firm or it is not.