AI Firms Captured 61% of Global Venture Capital in 2025—More Than Doub

When the final numbers came in for 2025, they told a story that Silicon Valley had been quietly building toward for years. Artificial intelligence didn’t just dominate venture capital—it consumed it. Out of every dollar invested by VCs globally last year, nearly two went straight into AI companies. The concentration was unprecedented, and the implications are only beginning to surface.

“AI firms accounted for 61% of global venture capital investment in 2025, or $258.7 billion out of a total $427.1 billion—more than doubling AI’s share since 2022.” — OECD Analysis

The Infrastructure Gold Rush

The numbers, released this week in a new OECD policy brief, reveal a market that has fundamentally reordered itself around artificial intelligence. Since 2022, when AI captured a still-significant 30% of VC dollars, the sector’s share of investment has more than doubled. But the real story lies in where that money is going.

IT infrastructure and hosting have emerged as the dominant category, attracting $109.3 billion in 2025 alone. Cumulative investment in this sector reached $256.1 billion between 2012 and 2025, reflecting the strategic importance of compute infrastructure for scaling advanced AI systems. The cloud wars have evolved into something more fundamental—a race to own the foundation upon which all future AI will be built.

Geographic concentration remains stark. US-based firms attracted roughly 75% of global AI VC deal value, or $194 billion. The EU27 captured 6% ($15.8 billion), China 5% ($13.9 billion), and the United Kingdom 5% ($13.8 billion). American investors themselves represent about 56% of worldwide outgoing VC investments in AI, followed by the UK at 9%, China at 8%, and EU27 investors at 7%.

The Mega Deal Era

Perhaps the most telling shift is the concentration of capital into increasingly massive funding rounds. Since 2023, the share of AI VC coming from early-stage investment rounds relative to later funding rounds has been declining. Mega deals exceeding $100 million now account for about 73% of total AI investment value.

Of these mega deals, transactions above $1 billion represent roughly half of total AI investment value. The market is consolidating around a handful of well-capitalized players, leaving less room for the garage startups that traditionally defined Silicon Valley.

“While long-term prospects for AI remain strong, venture capital markets are cyclical. These findings point to the scale and direction of recent investment trends, but should be interpreted with caution when assessing future developments.” — OECD Directorate for Science, Technology and Innovation

What Comes After the Flood

The concentration of capital raises questions that the industry has yet to fully confront. With so much money flowing into infrastructure, what happens to application-layer companies? Will the dominance of mega deals crowd out early-stage innovation? And perhaps most critically, what happens when the cycle turns?

Industry observers are watching for signs of a correction. The OECD itself cautions that these trends, while striking, should be interpreted carefully when projecting future developments. VC markets have always been cyclical, and the current pace of investment may not be sustainable indefinitely.

For now, the money continues to flow. The infrastructure is being built, the models are growing larger, and the bets are getting bigger. Whether this represents the foundation of a new technological era or the peak of a speculative bubble will only become clear in retrospect.

This article was reported by the ArtificialDaily editorial team. For more information, visit OECD Directorate for Science, Technology and Innovation.