North America Leads AI VC Funding Despite Political Challenges
▼ Summary
– North America dominates AI venture funding, receiving $69.7 billion across 1,528 deals from February to May, far outpacing Europe ($6.4 billion) and Asia ($3 billion).
– The U.S. has reduced AI research funding and imposed restrictive policies under Trump, creating uncertainty for AI startups and researchers.
– Despite Europe’s AI investment pledges and successful startups, VC funding hasn’t significantly shifted away from North America.
– Asia’s AI funding remains low, partly due to export controls limiting access to critical AI chips.
– In 2024–2025, North America’s share of global AI VC funding grew from 75.6% to 86.2%, reinforcing its dominance despite political challenges.
North America continues to dominate global AI venture capital funding, maintaining its position as the top destination for tech investments despite shifting political landscapes. Recent data reveals that between February and May this year, $69.7 billion flowed into North American AI and machine learning startups across 1,528 deals. This dwarfs the $6.4 billion invested in European AI ventures during the same period, with Asia trailing further behind at just $3 billion.
The resilience of North America’s AI sector is notable given recent policy changes that have raised concerns among researchers and investors. Federal funding cuts for basic AI research, stricter visa policies for foreign students, and threats to university-based AI labs have created uncertainty. Trade tensions and tariffs have also contributed to a volatile market, making it harder for new AI ventures to thrive.
Despite these challenges, investors remain heavily committed to North America, where startups captured 75.6% of global AI VC funding in 2024—a staggering $106.24 billion. That dominance has only grown in 2025, with the region now accounting for 86.2% of worldwide AI investments.
Europe, meanwhile, has struggled to capitalize on the political turbulence in the U.S. Despite ambitious EU initiatives and well-funded startups like Mistral and Aleph Alpha, venture capital hasn’t shifted en masse to the bloc. Similarly, Asia’s AI ecosystem, home to rising stars like DeepSeek and Butterfly Effect, faces hurdles such as export restrictions on AI chips, keeping investment levels subdued.
The data suggests that investors still see North America as the safest bet for high returns in AI, even amid regulatory uncertainty. While other regions are making strides, the U.S. and Canada remain the undisputed leaders in attracting venture dollars—at least for now.
(Source: TechCrunch)
