Artificial intelligence startups captured over 50% of venture funding in 2025

Artificial intelligence, one of the most revolutionarytechnologies to ever be invented, is expected to capture over half of total annual venture capital funding. A report by CB Insights said that AI companies raised 51 per cent of the total funding in 2025 so far, signaling the influence of the AI boom.

"AI companies captured 51 per cent of total venture funding in 2025 so far -- putting 2025 on pace for the first year ever where AI startups claim most of the funding," the report added.

This comes even when a section of economic experts says that the massive investments in the AI sector might just be part of a bubble that could burst like the dot-com bubble in the late 1990s.

Some experts say that the investments are not backed by a rise in revenues. This could lead to a market correction in the near future.

On the American stock markets, techstocks have witnessed massive upsides backed by massive investments in companies linked to artificial intelligence.

The report said that the US accounts for 85 per cent of all AI funding and 53 per cent of the total number of deals made this year.

Of the seven largest AI funding rounds, four were secured by U.S.-based companies. This dominance highlights the growing strength of the US in AI innovation and its ability to attract large-scale investments from global venture capitalists,the report said.

It added that venture funding amounted to over $90 billion in the third quarter of 2025.

Total annual funding climbed to USD 310 billion through Q3, marking the highest yearly figure since 2022.

Meanwhile, several celebrities and AI experts have written an open letter against developing artificial superintelligence.