AI startups raise $73 billion in Q1 venture capital funding

In the first quarter of 2025, artificial intelligence startups attracted a record $73 billion in global venture capital funding, making up nearly 60% of all venture capital investments worldwide, according to Pitchbook’s April 17 report.

This marks a substantial increase from the same period in 2024 when AI companies received just 28% of total venture capital dollars.

North America emerged as the leading region for AI investments, with 70% of the venture funding directed towards AI and machine learning startups.

A significant portion of this funding was driven by a single deal: OpenAI's $40 billion funding round, led by SoftBank, which closed on March 31.

Other major investments included Anthropic’s $3.5 billion Series E round in March.

“The fear of somebody else winning your market has never been higher than it is now,” stated Maria Palma, general partner at Freestyle Capital, discussed the heightened market competition, emphasising that the pace of technological advancement is overwhelming.

However, some experts caution against the rapid influx of capital.

“A lot of VC funds are just kind of saying, ‘Hey, this can only go up,’” warned Nnamdi Okike, co-founder and managing partner at 645 Ventures, suggesting that this mindset could lead to detachment from reality and potentially create many unsuccessful ventures.

In contrast, crypto and blockchain startups raised $4.8 billion in the same quarter, with nearly half of that amount, $2 billion, coming from MGX’s investment in Binance.

This represents a significant recovery for the crypto sector, fueled by a more favorable regulatory environment in the U.S.

The crypto market’s venture capital activity saw a fourfold increase from the previous quarter, marking the highest deal value since the third quarter of 2022.

Additionally, Galaxy Ventures Fund I, managed by Mike Novogratz, is on track to surpass its $150 million funding goal, with projections suggesting it could reach $180 million by June.