Venture capitalists poured $192.7 billion into AI startups so far this year — setting new global records and putting 2025 on track to be the first year where more than half of total VC dollars went into the industry, according to data provider PitchBook.

Most of the capital went to established startups – 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.”

In the most recent quarter, US VCs dedicated 62.7% of dollars invested to artificial intelligence companies, and global investors allocated 53.2%.

Overall VC deals totaled $366.8 billion for the year so far, with a growing portion of that investment happening in the US, at $250.2 billion.

While a few AI companies are collecting huge checks, the broader picture for startups is bleaker. The total number of companies to secure venture funding globally in 2025 is on track to be the lowest in years, as is the number of venture firms raising new funds.

Globally, 823 venture funds have raised more than $80 billion so far this year combined — representing a dramatic decline from 2022, when 4,430 VCs raised about $412 billion, PitchBook data show.

Backers of venture funds and partners of VC firms “are being more deliberate about where they’re putting their money,” Sanford said, “and they’re focusing it on AI.”

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