AI Startups to Capture Majority of VC Funding in 2025: A Historic Shift

For the first time, artificial intelligence (AI) startups are projected to command more than half of total annual venture capital funding in 2025, according to a report by CB Insights. The report reveals AI companies have so far secured 51% of 2025 funding, marking a significant redirection of investor focus towards this burgeoning sector.

Notably, the United States spearheads global AI growth, contributing 85% of all AI funding and 53% of the year’s total deals. Of the seven largest AI funding rounds, four were clinched by firms based in the U.S., underlining the nation's robust position in the realm of AI innovation and its magnetic pull on international venture capital investments.

The CB Insights report outlines that venture funding across industries surpassed USD 90 billion for a fourth straight quarter, reaching USD 95.6 billion in Q3 of 2025. However, total annual funding hit USD 310 billion, elevating it to the highest yearly amount since 2022, though the number of deals has plummeted to its lowest since Q4 of 2016 due to an increasingly selective investor approach.

This selective focus is evident as investors allocate larger sums to fewer ventures, with the median deal size expanding. Within AI, industrial humanoid robots emerge as a dominant market with 17 deals in Q3, accompanied by healthcare humanoid robots, which secured seven deals. Remarkably, two humanoid unicorns materialized in Q3, boosting the total to four in this niche market.

In summation, the escalation in AI investment in 2025 is set to redefine the global venture capital landscape, as the year marks a momentous shift where artificial intelligence seizes the majority of startup funding. (ANI)