Why AI VC Funding Still Favors North America in 2025

AI startups in North America dominate VC funding in 2025—despite political risks. Here's why investors aren't shifting focus to Europe or Asia.
Matilda
Why AI VC Funding Still Favors North America in 2025
Why North America Dominates AI VC Funding in 2025 (Despite Risks) If you’re searching for why AI VC funding is still centered in North America in 2025 , the short answer is this: despite political uncertainty and regulatory hurdles, U.S.-based startups continue to attract the lion’s share of global AI investment. Recent data from PitchBook reveals that North America remains the global hub for venture capital in artificial intelligence and machine learning—outpacing both Europe and Asia by massive margins. This trend is surprising to many, especially given rising concerns over restrictions on foreign talent, cuts to scientific grants, and protectionist trade policies.                           Image Credits:Andrew Harnik / Getty Images AI Investments Surge in North America: $69.7B in Just 3 Months Between February and May 2025, North American AI and machine learning startups secured a staggering $69.7 billion across 1,528 deals , compared to just $6.4 billion across 742 deals in Europe , and …