Despite concerns from some experts about an increasingly challenging environment for AI research and development, North America continues to dominate the AI funding landscape. According to the latest data from investment tracker PitchBook, the region remains the top destination for venture capital dollars in AI and machine learning.
Between February and May, North American startups attracted a staggering $69.7 billion across 1,528 deals. In comparison, European AI ventures received $6.4 billion from VC firms during the same period, spread over 742 deals. Asia, meanwhile, saw less activity, with $3 billion invested across 515 deals in that timeframe.
The U.S. has faced significant headwinds in AI research funding, especially under President Donald Trump’s administration. Funding for foundational AI research grants was notably reduced, and restrictions made it harder for international AI students to study in the U.S. There were also threats to freeze billions of federal dollars allocated to university AI labs. Additionally, trade policies and tariffs created a volatile environment that discouraged risky AI investments.
In March, renowned AI pioneer and Nobel Laureate Geoffrey Hinton publicly criticized Elon Musk for his role in government advisory groups, condemning the impact on U.S. scientific institutions. Despite these challenges, the U.S. remains the global leader in AI investment.
Europe, which has committed hundreds of billions of euros to foster AI growth and aims to become a worldwide AI leader, has not yet seen a significant surge in VC funding. While Europe boasts successful startups like Mistral, H, and Aleph Alpha, the anticipated shift of investment away from the U.S. has not materialized. There’s little evidence of a mass VC exodus to Europe or increased AI funding elsewhere.
Similarly, China has produced notable AI startups such as DeepSeek and Butterfly Effect, the developer of the agentic platform Manus. However, VC activity in China and broader Asia remains modest, partly due to export controls on AI chips that limit international procurement and collaboration.
Looking at the bigger picture, North American startups secured 75.6% of all global VC AI funding in 2024, amounting to $106.24 billion. The trend has only strengthened in 2025, with North American investments accounting for 86.2% — approximately $79.74 billion — of all worldwide AI funding so far this year.
This data presents a surprisingly resilient picture: despite political uncertainties and regulatory hurdles, the U.S. continues to be the epicenter of AI investment. Investors, even amid the complexities of the current political landscape, still see the U.S. as the most promising place for AI innovation and the best chance for significant returns.
