AI funding: Fewer deals, larger cheques
Venture funding in artificial intelligence (AI) is entering a phase of concentration, with the capital increasingly flowing into a smaller set of large, infrastructure-led bets even as the overall deal activity remains broad-based at the early stage.
Data from Tracxn captures the shift starkly. Just 14 AI startups raised $674 million in the first quarter of 2026—almost matching the $888-million raised by 124 companies through all of 2025. Strip away the headline number, and the concentration becomes even clearer: a single company – Neysa — accounted for roughly $600 million of this year’s funding, backed by investors including Blackstone, Ontario Teachers’ Pension Plan and Nexus Venture Partners.
