North America takes the bulk of AI VC investments, despite tough political environment

Despite a challenging environment for AI research and development, North America continues to dominate AI venture capital funding. From February to May, North American AI startups received $69.7 billion across 1,528 deals, significantly outpacing Europe and Asia, which received $6.4 billion and $3 billion, respectively. Under President Trump's administration, the U.S. has faced cuts to AI research funding and restrictive policies for foreign AI students, creating uncertainty. However, these factors have not deterred investors, who still see the U.S. as the leading hub for AI innovation.

In 2024, North American startups secured 75.6% of global AI VC funding, and this share has increased to 86.2% in 2025. Despite Europe's ambitions to lead in AI and China's emergence of notable AI startups, neither region has seen a significant increase in VC funding. Factors such as export controls on AI chips in Asia and the lack of a mass VC shift to Europe contribute to this trend. Investors continue to rely on U.S. innovation for substantial returns, even amid political and regulatory challenges.

Key takeaways:

North America continues to dominate AI venture capital funding, receiving the majority of investments despite a challenging political environment.
European AI ventures have not attracted significantly more venture capital despite the EU's commitment to AI development and the U.S.'s controversial policies.
Asia-based AI startups have received less venture capital compared to their European counterparts, partly due to export controls affecting AI chip procurement.
In 2025, North American AI investments represent 86.2% of global VC funding for AI, highlighting the region's continued leadership in AI capital.

North America takes the bulk of AI VC investments, despite tough political environment | TechCrunch

Key takeaways:

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