Generative AI VC Funding Hits $49.2 Billion in H1 2025

Global venture capital investment in generative AI surged to $49.2 billion in the first half of 2025, surpassing the total for all of 2024, according to EY. This marks a significant increase from the $21.3 billion recorded in 2023.

The rise in investment comes despite a 25% drop in the number of transactions compared to the latter half of 2024, as venture capital firms focus on more mature, revenue-generating AI companies. The average deal size for late-stage investments more than tripled to $1.55 billion, up from $481 million in 2024.

The United States continues to dominate the global generative AI investment landscape, accounting for 97% of the deal value and 62% of the volume. In contrast, Europe, the Middle East, and Africa (EMEA) accounted for 23% of the volume but only 2% of the deal value. Notable investments include SoftBank's potential $40 billion commitment to OpenAI and xAI's $10 billion funding round.

The report highlights the growing divide between the US and other regions in generative AI investment, with American firms leading the charge. Despite this, opportunities remain for regions like Ireland, where AI adoption is strong, but startups face challenges in accessing capital and infrastructure.