Categories: Overall

North America Dominates AI Venture Capital Investment Despite Political Challenges

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Despite increased political hurdles, North America is still leading the charge in AI funding. Between February and May, the region attracted nearly $70 billion in venture capital, outpacing Europe and Asia significantly. European startups received around $6.4 billion across 742 deals, while Asian ventures only attracted $3 billion in 515 deals.

In the US, government cuts to AI research funding under President Trump, along with trade tensions, have made things tricky for AI development. Yet, the U.S. remains the global hub for AI investments, with 86.2% of worldwide VC funding this year going to North American startups. Europe and Asia, despite their ambitions and investments, haven’t yet seen a major shift in AI funding trends.

Even in China, home to major AI startups like DeepSeek and Butterfly Effect, VC activity remains subdued due to export controls and other regulatory hurdles. Overall, North America has secured about 86.2% of all VC funding for AI in 2025, reaffirming its leadership position, despite political challenges.

Venture capitalists continue to bet big on U.S. innovation, showing confidence in the region’s potential for high returns. So, even with the obstacles, North America stays at the forefront of AI investment, keeping the global industry thriving.

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