VC funds flow into AI, but only to a few

AI has emerged as a strong magnet for venture capital in 2025, attracting a substantial 53% of all global VC funding in the first half of the year, the latest data from PitchBook shows. This figure is even higher at 64% for US based companies.

While the numbers suggest that the AI investment wave is far from slowing, market observers have cautioned over the increasing concentration of capital in a small group of companies—largely American. For instance, in Q2, over one-third of all US venture dollars were allocated to just five firms. Himanshi Lohchab breaks down the sharp rise and growing skew in AI funding trends