AI startups set to dominate venture capital in 2025

Artificial intelligence (AI) startups are on track to capture more than half of total annual venture capital funding for the first time in history, according to a new report by CB Insights.

The report revealed that AI companies have already secured 51 per cent of total venture funding in 2025, signaling a historic shift in investor priorities toward the sector. “AI companies captured 51 per cent of total venture funding in 2025 so far putting 2025 on pace for the first year ever where AI startups claim most of the funding,” the report stated.

The United States continues to lead the global AI ecosystem, accounting for 85 per cent of all AI funding and 53 per cent of total AI deals this year. Of the seven largest AI funding rounds, four were secured by U.S.-based companies, highlighting the country’s growing strength in AI innovation and its ability to attract large-scale investments from international venture capitalists.

Overall, venture funding across all industries has remained strong, exceeding USD 90 billion for the fourth consecutive quarter. In Q3 2025, total funding reached USD 95.6 billion, with annual funding climbing to USD 310 billion through Q3, marking the highest yearly figure since 2022. However, despite rising funding values, the number of deals has fallen to its lowest level since Q4 2016. This trend reflects growing investor selectivity, with bigger checks being written to fewer companies. The median deal size has also expanded, underscoring a shift toward concentrated investments in high-potential sectors such as AI.

Within the AI ecosystem, the humanoid robot segment emerged as one of the most active markets. Industrial humanoid robots recorded 17 deals in Q3 2025, surpassing other segments, while healthcare humanoid robots secured seven deals, placing them just outside the top 10 most active markets. With two new humanoid unicorns emerging in the third quarter, the total number of humanoid robot unicorns has now reached four.

The surge in AI investment marks a defining moment for the global venture capital landscape, with 2025 poised to become the first year in which artificial intelligence captures the majority of startup funding.