AI Startups Capture Majority of VC Funding in 2025 as Non-AI Ventures Fall Behind
In a dramatic shift within the startup ecosystem, artificial intelligence has become the undisputed magnet for venture capital in 2025. According to new data from PitchBook, AI startups have attracted $192.7 billion in funding so far this year — more than half of the total $366.8 billion invested globally.
In the U.S. alone, AI accounted for a staggering 62.7% of VC investment in the most recent quarter, while globally it captured 53.2%.
This marks the first time AI has surpassed the 50% threshold in venture capital allocation, signaling a seismic change in investor priorities.
High-profile companies like Anthropic, which secured a $13 billion Series F round in September, are leading the charge.
Meanwhile, non-AI startups are facing an uphill battle, with the number of successful fundraises plummeting. Only 823 venture funds have been raised globally in 2025 — a steep drop from 4,430 in 2022.
PitchBook’s director of research, Kyle Sanford, describes the current landscape as “bifurcated,” where startups are either in AI or out — and either backed by big firms or left behind. This polarization is making it increasingly difficult for smaller or non-AI ventures to secure funding, regardless of their innovation or potential.
For entrepreneurs and investors, this trend underscores the urgency of aligning with AI-related technologies to remain competitive.
Businesses outside the AI space may need to rethink their positioning or explore strategic pivots to attract capital. For users, it means the next wave of innovation — from consumer apps to enterprise tools — will likely be AI-driven.
FAQ
How much VC funding has gone to AI startups in 2025?
AI startups have received $192.7 billion so far in 2025, accounting for over 50% of global VC investment.
Are non-AI startups still getting funded?
Yes, but at much lower rates. The number of successful fundraises has dropped significantly, making it harder for non-AI ventures to compete.
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