The AI Investment Boom Sweeps the First Half of 2025

In the first half of 2025, global investment in AI startups showed explosive growth. In the first quarter, the AI sector attracted approximately $60-73 billion in investments, a year-on-year increase of over 100%, surpassing half of the total amount for the entire year of 2024. The venture capital received by AI companies accounted for 58% of the total, significantly up from 28% a year ago, reflecting strong investor interest in AI.

This trend indicates that capital is being concentrated on a large scale in the AI sector, with major institutions increasing their investment in potential industry leaders, which may reshape the funding allocation pattern for the second half of the year.

Huge financing is concentrated in a few leading enterprises

During the period, large-scale late-stage financing led by industry leaders was particularly prominent. An AI company raised $40 billion, setting a new record for private financing in history, with a valuation of $300 billion. Another AI company reached a valuation of $61.5 billion after a $3.5 billion Series E financing. Additionally, several other financings in the hundred million dollar range further boosted the total amount.

This "winner-takes-all" situation concentrates most of the funds in the hands of a very small number of companies, squeezing out the capital that could flow to early-stage or small enterprises.

Polarization of Financing Scale

With the exception of a few large transactions, medium-sized transactions have surged, while seed round financing has become more selective. The median for seed round financing in the AI sector has reached $15 million (with an average of $41 million), and the median for Series A is about $75-80 million, both significantly higher than historical averages. The medians for Series C and D financing are concentrated between $250-300 million, with the average being skewed upward due to extreme cases.

The expansion of trading scale reflects intense competition among leading companies in the industry. Investors who are unable to provide large-scale financing may turn to niche areas or earlier stages, while any startup with an AI concept may secure larger-scale financing and higher valuations.

Industry and Region Highly Concentrated

Generative AI and core models/infrastructure have attracted over $45 billion in funding, accounting for more than 95% of the disclosed total. Application-specific AI verticals are relatively underfunded. Geographically, the United States (especially Silicon Valley) dominates, absorbing over 99% of the global AI funding. Asia and Europe are relatively lagging, with China's largest transaction financing at $247 million and only a few medium-sized financings in Europe.

It is expected that governments and investors outside the United States will take measures in the second half of the year to avoid falling behind by establishing national AI funds, providing incentives, or engaging in cross-border investments.

Outlook for the Second Half of the Year: High Enthusiasm but Cautious Nonetheless

Despite record capital inflows, investors' cautious attitude is returning. In the first half of the year, most financing was dominated by strategic or corporate investors, indicating a preference for projects with practical application scenarios and strategic synergy effects. In the second half of the year, investors will closely monitor the performance of startups that have received large funding in terms of product delivery, revenue, and regulatory compliance.

Capital may tend to favor companies that demonstrate efficiency and market attractiveness, especially "infrastructure" providers such as tools, chips, and enterprise software, which will raise the barriers for new entrants and consolidate the advantages of existing companies.

The AI investment boom in the first half of 2025 will shape the innovation landscape and competitive dynamics for the coming years. Investors need to closely monitor the flow of funds and their reasons to seize investment opportunities in the second half of the year. Key questions include: Can the winners justify their valuations, and will there be a correction and refocusing? This data provides important references for investment strategies, policy considerations, and the financing prospects of founders.