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If you’re trying to raise money for your startup this year and you’re not in AI, you might want to sit down. According to new data from PitchBook, artificial intelligence isn’t just hot — it’s eating the entire venture capital world.
Here’s the short version: in 2025, AI is pulling in more than half of all global VC investment. Yep, more than 50%. In the U.S., it’s even higher — 62.7% of venture capital money went directly into AI startups in just the last quarter.
Even more wild? We’re not even done with the year yet. So far, investors have poured $192.7 billion into AI startups. That’s out of a total $366.8 billion globally. If this pace keeps up (and all signs say it will), 2025 will be the first year in history where AI takes the majority share of startup funding.
Big Money Chases Big AI
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But let’s be real — not all AI companies are getting a piece of that pie. Most of this money is chasing a few well-known players. Case in point: Anthropic. They announced a massive $13 billion Series F in September, bringing even more spotlight (and funding) to a handful of marquee names.
Meanwhile, the rest of the startup world is… struggling.
New venture funds are slowing down too. Only 823 funds have been raised globally in 2025 so far. Just three years ago, in 2022, that number was 4,430. That’s an 80% drop — and it’s not just bad luck. As PitchBook’s director of research Kyle Sanford put it, the market is splitting in two: “You’re in AI, or you’re not. You’re a big firm, or you’re not.”
What This Means If You’re Not Building AI
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If you’re outside the AI boom, this probably feels like the worst time ever to raise money. And…you’re not wrong. VCs are being incredibly selective right now, and the numbers back it up. Capital is not only tightening — it’s funneling sharply into one specific track.
This kind of bifurcation isn’t just a trend. It reshapes entire startup ecosystems. If fewer new funds are being raised and most existing funds are chasing AI deals, hundreds (or thousands) of early-stage ideas may never even leave the notebook.
So, What Now?
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If you’re building something that’s not AI, the road ahead might be longer than it used to be. But it’s also a good time to ask bigger questions — about product, value, and whether you really need VC money at all.
For investors, this AI obsession is a double-edged sword. It might deliver massive returns. But it’s also narrowing the field, creating blind spots, and potentially overlooking other valuable innovation outside artificial intelligence.
AI is clearly having a moment — and probably more than just a moment. But for everyone else, the message from 2025 is brutally clear: unless you’re in AI, you’re not getting funded.
Keywords: AI startups, venture capital 2025, PitchBook AI report, Anthropic Series F, startup funding trends, VC investment statistics, artificial intelligence funding
