North America Leads AI VC Funding Despite Challenges
North America Dominates Global AI Investment
New data reveals that despite political challenges and reduced government support, North America continues to dominate AI venture capital funding. According to PitchBook’s latest analysis, the region secured a staggering $69.7 billion across 1,528 deals between February and May 2025 – dwarfing investments in other markets.
Global Funding Comparison
The numbers paint a clear picture of North America’s leadership position:
- Europe: $6.4 billion across 742 deals
- Asia: $3 billion across 515 deals
Persistent Dominance Despite Headwinds
This trend continues from 2024, when North American AI startups captured 75.6% of global VC funding ($106.24 billion). Their share has actually increased to 86.2% ($79.74 billion) in 2025.
Political Challenges in the US
The investment surge comes despite significant obstacles created by the Trump administration:
- Deep cuts to scientific grants for basic AI research
- Restrictive immigration policies affecting foreign AI students
- Threats to university AI labs through federal funding freezes
- Trade policies creating market uncertainty
AI luminary Geoffrey Hinton even called for Elon Musk’s removal from the British Royal Society in March 2025, citing damage to US scientific institutions.
Why Competitors Haven’t Closed the Gap
Europe’s Missed Opportunity?
Despite EU commitments to AI leadership and substantial funding pledges, Europe hasn’t seen the expected investment shift from North America. Established players like Mistral, H, and Aleph Alpha demonstrate potential, but haven’t altered the funding landscape.
Asia’s Challenges
China’s AI ecosystem, home to rising stars like DeepSeek and Butterfly Effect, faces its own hurdles. Export controls on AI chips and broader economic factors have kept regional VC activity subdued.
The Resilience of North America’s AI Ecosystem
These findings underscore North America’s continued dominance in AI innovation and investment. Despite political uncertainty, investors clearly believe the region offers the strongest potential for breakthrough technologies and returns.
The data suggests that for now, VC firms view North America’s AI startup ecosystem as mature and robust enough to overcome political challenges – though how long this resilience lasts remains to be seen.