North America continues to lead the charge in AI venture capital, even as political challenges stir debate. Recent PitchBook data shows that between February and May this year, venture capitalists poured $69.7 billion into North American AI and machine-learning startups over 1,528 deals. In comparison, European startups attracted only $6.4 billion from 742 deals, and Asian ventures received a modest $3 billion spread across 515 deals.
Even with policy shifts during President Donald Trump’s administration—such as cuts to federal funding for basic AI research and stricter measures on foreign students—the U.S. remains the engine of innovative finance. Investors continue to back American ingenuity, which has kept North America at the forefront of AI development.
There’s been plenty of buzz too. AI pioneer Geoffrey Hinton took aim at Elon Musk in March, suggesting Musk’s impact on U.S. scientific institutions was more harmful than helpful. Meanwhile, many expected Europe’s ambitious push in AI, backed by robust EU funding and promising start-ups like Mistral and Aleph Alpha, to attract more capital. Yet, the shift hasn’t been as dramatic as predicted. Similarly, despite China’s well-known AI players, challenges such as export controls on AI chip procurement seem to have dimmed its funding prospects.
In 2024, North America secured 75.6% of global AI venture capital — totaling $106.24 billion. By 2025, that dominance grew, capturing 86.2% (or $79.74 billion) of the global pie. No matter the political or regulatory hurdles, it’s clear that investors are betting on American innovation to deliver substantial returns.
