North America Leads AI VC Funding Despite Challenges
North America Dominates Global AI Investment Landscape
New data reveals North America continues to command the lion’s share of global AI venture capital funding, despite facing significant political and regulatory challenges. According to PitchBook’s latest investment tracking, the region secured $69.7 billion across 1,528 AI and machine learning deals between February and May 2025.
Comparing Global Investment Trends
European AI startups attracted $6.4 billion across 742 deals during the same period, while Asian ventures saw just $3 billion deployed across 515 transactions. This demonstrates North America’s continued dominance in artificial intelligence funding.
Political Headwinds Fail to Slow US Funding Momentum
The investment figures appear surprising given recent policy changes under the Trump administration that have created challenges for AI research and development:
- Significant reductions in scientific grants for basic AI research
- Increased immigration barriers for foreign AI students
- Threats to university AI labs through federal funding freezes
- Trade policies creating market instability
Despite these obstacles, North America’s share of global AI venture capital has actually grown – from 75.6% ($106.24 billion) in 2024 to 86.2% ($79.74 billion) so far in 2025.
Why hasn’t investment shifted to Europe or Asia?
Many expected Europe’s substantial commitments to AI development – including hundreds of billions in funding and successful startups like Mistral and Aleph Alpha – would attract more venture capital. Similarly, Asia has produced notable AI companies including DeepSeek and Butterfly Effect’s Manus platform.
Two key factors explain the persistent investment gap:
- Investors continue betting on North American AI innovation for maximum returns
- Export controls limiting Asia’s access to advanced AI chips
The Unshakable Position of North American AI
While geopolitical and regulatory challenges persist, North America maintains its position as the global AI investment hub. The region’s robust startup ecosystem, combined with its historical leadership in technological innovation, continues to outweigh political uncertainties in the eyes of venture capitalists.
As AI pioneer Geoffrey Hinton noted in recent criticism of U.S. policies, the scientific community recognizes both the damage being done to AI research institutions and the enduring strength of American AI development.