AI Startups Grab Record $192.7B, Dominating VC Funding in 2025: Nairametrics

According to data from PitchBook, artificial intelligence startups secured a record $192.7 billion in venture capital funding in 2025, as reported by Nairametrics. This figure represents a significant concentration of investment, accounting for 53.2% of all global venture funding and 62.7% within the United States. For the first time, a single sector has captured the majority of global VC investments. PitchBook's report identifies a market bifurcation, with large, established AI companies like Anthropic and xAI successfully closing multi-billion-dollar funding rounds. Conversely, early-stage startups and companies outside the AI sector are encountering increasing difficulties in securing capital. As Kyle Sanford, PitchBook’s Director of Research, noted, "The market is bifurcated: you’re in AI, or you’re not; you’re a big firm, or you’re not." Despite the surge in AI investment, the broader venture capital market is experiencing a contraction. Global venture deals have totaled $366.8 billion in 2025, with the U.S. accounting for $250.2 billion. However, the projected number of companies successfully obtaining VC funding is at a multi-year low. Only 823 venture funds globally have raised approximately $80 billion this year, a substantial decrease compared to 2022, when 4,430 funds raised $412 billion. This slowdown reflects investor caution driven by a weak IPO market and limited merger and acquisition activity, thereby reducing exit opportunities. Despite the overall market downturn, investors remain keenly focused on AI's transformative potential across key sectors, including healthcare, manufacturing, and finance.