North America Leads AI VC Funding Despite Challenges
Despite facing regulatory and political headwinds, North America continues to dominate global AI venture capital funding according to recent PitchBook data. Between February and May 2024, North American AI startups secured $69.7 billion across 1,528 deals – dwarfing investments in other regions.
Global Investment Disparities
European AI ventures received just $6.4 billion across 742 deals during the same period, while Asian startups fared worse with only $3 billion across 515 deals. This imbalance persists despite:
- U.S. funding cuts for basic AI research
- Restrictions on foreign AI students
- Threats to university research labs
- Trade policies creating market uncertainty
Surprising Market Resilience
Industry experts expected investment shifts toward Europe’s AI ecosystem, which includes well-funded startups like Mistral and Aleph Alpha. However, data shows North America’s share of global AI funding actually increased from 75.6% in 2024 to 86.2% in 2024.
China’s AI sector, home to companies like DeepSeek and Butterfly Effect, also hasn’t seen the anticipated investment surge. Export controls on AI chips likely contribute to this stagnation.
Investor Confidence Remains Strong
Despite political turbulence, investors continue betting on North American AI innovation. The region’s dominance suggests that:
- Market fundamentals outweigh political risks
- Existing tech infrastructure remains unmatched
- Investors see highest potential returns in North America
This trend highlights the resilience of North America’s AI ecosystem, even as other regions attempt to challenge its leadership position in artificial intelligence development and commercialization.