AI Firms Capture 61% of Global Venture Capital in 2025
AI Firms Capture 61% of Global Venture Capital in 2025

When venture capitalists gathered at their annual retreats in early 2025, the conversation had shifted dramatically from years past. The numbers were stark: artificial intelligence wasn’t just another sector anymore—it had become the sector. By year’s end, AI firms would account for nearly two-thirds of all global venture investment, a concentration of capital that has reshaped the entire technology landscape.

“AI firms captured 61% of global venture capital investment in 2025, representing $258.7 billion out of a total $427.1 billion globally.” — OECD Analysis

The Scale of the Shift

The concentration is unprecedented. According to new OECD analysis of venture capital data, AI’s share of global VC has more than doubled since 2022, when it represented 30% of total investment. This isn’t merely growth—it’s a fundamental restructuring of where smart money believes value will be created in the coming decade.

Infrastructure dominance defines the current investment pattern. Since 2023, AI firms focused on IT infrastructure and hosting have attracted the largest volumes of venture capital, reaching $109.3 billion in 2025 alone. Cumulative investment in this sector totaled $256.1 billion between 2012 and 2025, reflecting the strategic importance of compute infrastructure for scaling advanced AI systems.

Geographic concentration remains pronounced. VC investors in the United States represent about 56% ($124 billion) of the worldwide value of outgoing VC investments in AI in 2025. The United Kingdom follows at 9% ($20.7 billion), China at 8% ($17.2 billion), and EU27 investors at 7% ($14.5 billion).

Deal destination tells a similar story. Firms based in the United States attracted about 75% ($194 billion) of global AI VC deal value. The EU27 captured 6% ($15.8 billion), China 5% ($13.9 billion), and the United Kingdom 5% ($13.8 billion).

“The concentration of AI investment in the United States reflects both the maturity of its ecosystem and the scale of capital required to compete at the frontier of AI development.” — OECD Technology Policy Analyst

The Mega-Deal Phenomenon

Perhaps the most striking trend is the emergence of mega-deals. AI VC investments are increasingly concentrating in transactions exceeding $100 million. Since 2023, the share of AI VC coming from early-stage investment rounds relative to later funding rounds has been declining.

Mega-deals now account for about 73% of total AI investment value in 2025. Of these, deals above $1 billion represent roughly half of total AI investment value, indicating an increasingly concentrated market where only the best-capitalized players can compete at scale.

This concentration raises important questions about market dynamics. Early-stage startups may find themselves competing for a shrinking pool of seed and Series A capital, while established players with proven models can command virtually unlimited investment at valuations that would have seemed absurd just years ago.

Implications for the Ecosystem

The implications of this capital concentration extend far beyond the balance sheets of individual companies. For founders, the message is clear: AI is where the money is, but it’s also where the competition is fiercest. The barriers to entry have never been higher.

Compute costs remain the primary gatekeeper. Training frontier AI models requires capital expenditures measured in billions of dollars. This reality has created a two-tier market: well-funded incumbents who can afford to compete at the frontier, and everyone else who must find niches or applications where smaller models can succeed.

Talent markets have been similarly transformed. The concentration of capital has driven compensation for top AI researchers to unprecedented levels, making it difficult for startups and academic institutions to compete for the best minds.

Regulatory attention is increasing in parallel. As AI firms capture an ever-larger share of economic value, policymakers are taking notice. Questions about market concentration, data privacy, and the societal implications of AI deployment are moving from technical debates to legislative agendas.

“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 Policy Brief

Looking Forward

The OECD analysis comes with an important caveat: venture capital markets are cyclical. The current concentration of investment in AI reflects both genuine technological promise and the herd behavior that often characterizes capital markets. Whether this concentration represents a permanent shift or a peak will only become clear with time.

What is clear is that 2025 marked a watershed moment. AI has moved from a promising technology sector to the dominant force in venture capital. For better or worse, the future of technology investment is now inextricably linked to the future of artificial intelligence.

For investors, founders, and policymakers, the challenge now is navigating this concentrated landscape while preserving the innovation and competition that have historically driven technological progress. The capital is there. The question is what we build with it.


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

By Arthur

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