Artificial intelligence has become the dominant force in global venture capital, according to data compiled from PitchBook, CB Insights, and LIQUiDITY. Quarterly deal data shows AI and machine learning funding climbing from just 21.8 percent of global venture capital deal value in the first quarter of 2022 to 52.2 percent by the fourth quarter of 2025, the first time the category has topped half of all deal value in the dataset.
The shift accelerated sharply after 2024. AI and machine learning deals reached $66.7 billion in the fourth quarter of that year, edging past the $61.7 billion invested across every other sector combined for the first time. By the fourth quarter of 2025, AI and machine learning deals reached $72.4 billion against $66.2 billion for the rest of the market.
Stanford's 2026 AI Index Report puts a similar trend in national terms: United States private AI investment reached $285.9 billion in 2025, more than 23 times the $12.4 billion invested in China, though the report notes that private investment figures likely understate China's total AI spending given its government guidance funds. The United States also led in entrepreneurial activity, with 1,953 newly funded AI companies in 2025, more than 10 times the next closest country.
Both data sets point to the same conclusion: capital is concentrating around AI infrastructure, model developers, and enterprise tooling at a pace that is reshaping venture markets even as overall deal activity in other sectors remains below its pandemic-era peak.
Source: Stanford HAI AI Index Report - https://hai.stanford.edu/ai-index/2026-ai-index-report