Artificial intelligence startups captured a record-breaking 57% of global venture capital funding in the first quarter of 2025, marking the highest concentration of investment in the sector’s history, according to a comprehensive new report from BestBrokers.
The financial services research firm’s analysis reveals that AI and machine learning companies attracted $73.1 billion of the $126.3 billion in total venture capital invested during Q1 2025, underscoring the technology sector’s dominant position in attracting institutional investment.
SoftBank’s historic OpenAI investment
The quarter’s investment surge was headlined by SoftBank’s unprecedented $40 billion investment in OpenAI, which propelled the AI company’s valuation past $300 billion and established a new global record for the largest private technology investment to date.
“AI has undergone exponential growth in recent years, becoming a foundational element across modern tech sectors,” the BestBrokers report states. “Substantial backing from major investors, including SoftBank’s Vision Fund, Andreessen Horowitz, and Tiger Global Management, continues to fuel innovation and attract a new wave of entrepreneurs eager to tap into the potential of this transformative technology.”
Investment concentration amid deal decline
Despite the record funding levels, the research reveals a stark contradiction in market dynamics. The total number of venture capital deals across all sectors fell to just 7,551 in Q1 2025—the lowest level recorded in over a decade—reflecting growing caution among investment firms toward startups lacking clear monetization pathways.
Within the AI sector specifically, venture capital firms completed 2,101 investments in artificial intelligence and machine learning startups, representing approximately 27.8% of all recorded deals. This marked the lowest number of AI-focused investments since Q4 2020, indicating that while funding amounts have surged, the number of companies receiving investment has contracted.
North American dominance in AI investment
The report highlights North America’s commanding position in the global AI investment landscape. North American venture capital firms were responsible for 1,056 of the 2,101 AI deals recorded globally, while contributing $65.3 billion—an impressive 89.3% of the $73.1 billion invested worldwide in AI and machine learning startups during the quarter.
This geographic concentration reflects the continued dominance of Silicon Valley and other North American tech hubs in attracting both entrepreneurial talent and investment capital in the artificial intelligence sector.
Decade-long growth trajectory
The Q1 2025 figures represent the culmination of a decade-long investment trend that has fundamentally reshaped venture capital allocation. In 2015, AI deals represented just 8.6% of all venture capital-backed investments. By Q1 2025, that share had climbed to 27.8%, demonstrating the sector’s growing prominence in the investment landscape.
Even more dramatic is the evolution in funding value concentration. While AI startups attracted 57% of global venture capital investment in Q1 2025, this represents a massive increase from historical norms, underscoring growing investor confidence in artificial intelligence technologies.
Market outlook and global projections
The investment surge occurs against the backdrop of explosive growth projections for the artificial intelligence sector. Industry analysts predict the global AI market will reach $4.8 trillion by 2033, providing a compelling investment thesis for venture capital firms seeking exposure to transformative technologies.
“With AI companies constantly making headlines with their breakthroughs, sensational claims, or just as thrilling failures,” the sector continues to attract both institutional and retail investor attention, according to the BestBrokers analysis.
Research methodology and data sources
The BestBrokers team compiled investment and fund data from multiple sources including Pitchbook, CB Insights, and several other industry databases, analyzing the latest financial disclosures from leading venture capital firms to produce their comprehensive report.
The research firm has made its complete findings and datasets available through Google Drive, providing transparency into the methodology and raw data underlying their analysis.
The concentration of venture capital funding in artificial intelligence and machine learning startups reflects both the sector’s potential for returns and the growing recognition among institutional investors that AI technologies represent a foundational shift in how businesses operate across industries.
As venture capital firms continue to seek opportunities in an increasingly competitive investment landscape, the artificial intelligence sector’s ability to attract the majority of available funding demonstrates its position as the dominant theme in contemporary technology investment.
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