North America takes the bulk of AI VC investments, despite tough political environment
Despite what some experts have characterized as an environment that is more hostile to AI R&D, Noord -America continues to receive the majority of AI Venture Dollars, according to data from Investment Tracker PitchBook.
Between February and May of this year, VCS flooded $ 69.7 billion in North America-in AI and Machine Learning Startups for 1,528 deals. This is compared to $ 6.4 billion that VC companies have invested in European AI companies in 742 deals during the same period.
According to PitchBook, the startups based in Asia have been a bit worse than their European counterparts. Between February and May, VCS only invested $ 3 billion in AI startups in Asia in 515 deals.
Under President Donald Trump, the US has that Dramatize For scientific subsidies with regard to Basic AI research, it made it more difficult for foreign students who specializes in AI to study in the US, and threatened to dismantle University AI Labs by freezing billions of dollars on federal funds. The trade policy of the administration, now, including the retribution rates, have led to a chaotic market that is unfavorable for risky new AI companies.
In one Post on X In March, AI Pioneer and Nobel Prijswinner Geoffrey Hinton called for billionaire Elon Musk, who until recently had advised Trump’s cost -saving group, the Ministry of Government Efficiency, to be driven out of the British Royal Society “to” vs “
It would be expected that Europe, which promised to become a world leader in AI, would attract more venture capital in the light of Trump’s controversial policy in the US, who created uncertainty and confusion for founders, investors and researchers. Moreover, the EU has committed hundreds of billions of euros to support the development of AI in its member states and already has a number of successful, well-funded AI startups in its ranks (see Mistral, H and Aleph Alpha, to name just a few).
But that expected shift in global investments did not pass. There is no sign of a mass -export from the block, or of significant increase in AI financing abroad -at least not yet.
The same applies to China, which has produced spawning AI startups such as Deepseek and Butterfly-Effect-the company behind the agent manus-but where VC activity in the country and the wider Asian region remains relatively sober. (Export checks that influence the ability of certain Asian countries to obtain AI chips are almost certainly a factor.)
In 2024, North American startups insured 75.6% of all VC AI financing -$ 106.24 billion. That share has only increased this year. Until now, in 2025, North American AI investments 86.2% ($ 79.74 billion) of all VC finance for AI worldwide represent.
It paints a somewhat surprising image. Even in the midst of setting up political and regulatory headwind below Trump’s second term, the US remains the undisputed center for AI capital, which means that investors, tired as they can be due to the unpredictability of the administration, still count on American innovation to achieve the greatest returns, at least for the time being.
