US-based AI startups are continuing to attract significant venture capital in 2025, with multiple companies securing impressive funding rounds. In Q1 2025, AI startups globally raised $22.3 billion, nearly double the amount from the same period last year, and the second-highest quarterly figure on record. This investment surpasses funding in other tech sectors like IT and fintech, signalling strong investor confidence in AI's long-term potential. Much of the investment is driven by 'AI FOMO,' with investors keen not to miss out on the rapidly evolving AI market. Generative AI applications are particularly hot, attracting funding for startups focused on coding tools and AI-powered search engines.
North America is particularly focused on AI, with 70% of its venture capital going to the technology. Andreessen Horowitz is reportedly seeking to raise $20 billion for a fund focused on growth-stage AI companies in the US, highlighting the continued excitement around AI's potential. This surge in funding is expected to continue throughout 2025, with advancements in generative AI, automation and specialised AI models driving further growth.
