North America Dominates AI VC Investments in 2023

The Unshakable Lead in AI Funding

North America maintains its stronghold as the global epicenter of AI venture capital investments, with PitchBook data revealing a staggering $69.7 billion poured into the region’s AI and machine learning startups between February and May 2023. This massive influx spread across 1,528 deals dwarfs Europe’s $6.4 billion across 742 deals and Asia’s $3 billion across 515 deals during the same period.

Political Headwinds Fail to Stem Investment Flow

Despite significant political challenges under the Trump administration – including reduced scientific grants, restrictive policies for international AI students, and threats to university labs – investors continue betting big on North American AI innovation. The region accounted for 75.6% ($106.24 billion) of all VC AI funding in 2024, growing to 86.2% ($79.74 billion) in 2025 year-to-date investments.

Global Competitors Fall Short

While Europe established ambitions to lead in AI with substantial funding commitments for member states, and China produced notable startups like DeepSeek and Butterfly Effect, neither region has managed to significantly close North America’s funding gap. Export controls affecting AI chip procurement in Asia have likely contributed to this investment disparity.

The Resilience of North America’s AI Ecosystem

The continued dominance of North American AI ventures speaks to the region’s entrenched innovation ecosystem, even amid political uncertainty. As Geoffrey Hinton noted in a March 2023 post criticizing policies harming U.S. scientific institutions, the region’s ability to attract capital remains remarkably resilient.

This investment trend underscores two key realities: North America retains its position as the world’s primary hub for AI development, and venture capitalists still see the greatest potential returns coming from its startups – regardless of external challenges.