AI dominates venture capital investing in 2025, pulling in US$192.7 billion

That puts 2025 on track to be the first year where more than half of total VC dollars go into the AI industry, according to PitchBook data

Reading Time:1 minute

In the June quarter, US-based venture capital firms dedicated 62.7 per cent of dollars invested to AI companies, while global investors allocated 53.2 per cent. Photo: Shutterstock

Published: 4:16pm, 3 Oct 2025Updated: 4:19pm, 3 Oct 2025

Venture capitalists poured US$192.7 billion into artificial intelligence start-ups so far this year, setting new global records and putting 2025 on track to be the first year in which more than half of total VC dollars went into the industry, according to data provider PitchBook.

Most of the capital went to established start-ups – Anthropic and xAI both raised billions in funding this quarter – while some other lesser-known upstarts struggled, especially companies that are not focused on AI.

The hangover of a tight environment for public listings and acquisitions has also left some venture investors unwilling to make new bets on unproven companies, PitchBook found.

“Everywhere we look, the market is bifurcated,” said Kyle Sanford, a PitchBook director of research. “You’re in AI, or you’re not. You’re a big firm, or you’re not.”

San Francisco-based AI firm Anthropic in September completed a Series F financing round that raised US$13 billion, lifting its valuation to US$183 billion. Photo: Shutterstock

In the most recent quarter, US-based VCs dedicated 62.7 per cent of dollars invested to AI companies, while global investors allocated 53.2 per cent.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x