AI Firms Capture 61% of Global Venture Capital in 2025, OECD Report Finds

When venture capitalists gathered in Davos this January, the conversation had shifted. No longer were they debating whether artificial intelligence was the next big thing—they were arguing about how much was too much. New data from the OECD reveals just how dramatically the investment landscape has transformed: AI firms now account for 61% of all global venture capital, a figure that has more than doubled since 2022.

“The concentration of capital in AI has reached unprecedented levels. We’re seeing a fundamental restructuring of how venture capital allocates risk and reward.” — OECD Technology Policy Analyst

A Quarter-Trillion Dollar Bet

The numbers are staggering. According to the OECD’s latest analysis, AI companies attracted USD 258.7 billion out of a total USD 427.1 billion in global VC investment during 2025. That’s not just growth—that’s a market capture that would have seemed impossible just three years ago, when AI represented a relatively modest 30% of venture funding.

Infrastructure dominance has become the defining characteristic of this investment wave. Firms focused on IT infrastructure and hosting—essentially the picks and shovels of the AI gold rush—pulled in USD 109.3 billion in 2025 alone. Cumulative investment in this sector has now reached USD 256.1 billion since 2012, reflecting the strategic importance of compute infrastructure for scaling advanced AI systems.

Geographic concentration tells its own story. United States-based firms attracted roughly 75% of global AI VC deal value, or USD 194 billion. The EU27 captured 6% (USD 15.8 billion), China secured 5% (USD 13.9 billion), and the United Kingdom took 5% (USD 13.8 billion). American investors themselves remain the most active, representing about 56% of worldwide outgoing VC investments in AI.

“We’re witnessing a concentration of both capital and capability that raises important questions about market dynamics and competitive fairness.” — European Venture Capital Association

The Mega-Deal Economy

Perhaps the most striking shift is the rise of what industry insiders call “mega deals”—investments exceeding USD 100 million. These transactions now account for approximately 73% of total AI investment value. Even more remarkable: deals above USD 1 billion represent roughly half of all AI investment value.

Early-stage squeeze is the inevitable consequence. As mega deals dominate, the share of AI VC coming from early-stage investment rounds has been declining steadily since 2023. The implications for startup ecosystems are profound. Founders without immediate paths to massive scale find themselves competing for a shrinking pool of early-stage capital, while well-capitalized incumbents extend their advantages.

Market cyclicality remains a cautionary note. The OECD report explicitly warns that while long-term prospects for AI remain strong, venture capital markets are inherently cyclical. Today’s investment frenzy could become tomorrow’s correction. The report’s authors advise interpreting these findings with caution when assessing future developments.

What Comes Next

The concentration of capital in AI raises questions that extend beyond financial returns. Market observers are watching for several key developments: Will regulatory scrutiny increase as AI firms capture an ever-larger share of investment dollars? Can non-AI sectors attract sufficient capital to maintain innovation ecosystems? And what happens when the cycle inevitably turns?

For now, the money continues to flow. The infrastructure buildout—data centers, specialized chips, cloud computing capacity—shows no signs of slowing. The OECD data suggests that 2025 may represent a peak, or it may simply be a waypoint on a longer trajectory. Either way, the venture capital landscape has been permanently altered.

The question for 2026 isn’t whether AI will continue to dominate investment conversations. It’s whether anything else can break through.

This article was reported by the ArtificialDaily editorial team. For more information, visit OECD.