AI startups attract $22.3 billion in near-record first quarter funding

Artificial Intelligence
Share


Venture capital investment in artificial intelligence (AI) startups reached $22.3 billion globally during the first quarter of 2025, marking the second-highest quarterly funding total ever recorded for the sector.

Analysis presented by Stocklytics.com, using Crunchbase data, indicates continued strong investor confidence in AI despite wider economic challenges.

The Q1 2025 figure represents nearly double the investment seen in the same period last year and was surpassed only by the record $35.7 billion raised in the final quarter of 2024. This substantial start to the year suggests 2025 could potentially exceed the nearly $90 billion record funding level achieved throughout 2024.

Investment momentum in AI has accelerated dramatically, with data showing that nearly 80% of the over $300 billion raised cumulatively by AI startups has been secured within the last four years.

Compared to other technology sectors attracting significant venture capital, AI outpaced rivals considerably in Q1. Funding for AI startups was nearly three times higher than that for fintech companies ($8.5 billion) and 30% greater than investment in IT startups ($17 billion) during the same period.

Geographically, US-based AI companies continue to dominate global fundraising, having attracted $205 billion in total investment to date. This significantly exceeds the funding raised by AI startups in Asia ($52.1 billion) and Europe ($35.1 billion).

The sustained high level of investment is attributed partly to ongoing large funding rounds for prominent AI firms and an increasing focus by investors on startups that are developing practical, market-ready AI applications and solutions.

The full story and statistics can be found here:  https://stocklytics.com/content/ai-startups-raise-22-3-billion-in-q1-second-highest-total-on-record/

For latest tech stories go to TechDigest.tv


Discover more from Tech Digest

Subscribe to get the latest posts sent to your email.