North America continues to lead the world in venture capital investments into artificial intelligence (AI). This kind of leadership continues to shine through even in the most pitiful political climate. The United States, of course, continues to be the uncontested hub for AI capital, with investment dollars flooding into the industry. Between February and May of this year, North American-based venture capitalists invested an astounding $69.7 billion into AI and machine learning startups. They did it in a remarkably effective 1,528 transactions!
In stark contrast to its investment success, the U.S. has been scrutinized for its controversial policies regarding AI research funding and foreign student access. Under former President Donald Trump, the U.S. significantly cut scientific grant funding. This extreme reduction hit basic AI research particularly hard. Trump’s policies have made it increasingly difficult for foreign students specializing in AI to study in the United States, raising concerns among educators and researchers.
The combination of a toxic political environment has left all founders, investors and researchers in limbo. Trump’s administration has threatened to dismantle university-housed AI labs by freezing billions of dollars in federal funds, further complicating the landscape for innovation in the field. The future of North American AI investments is bright despite the headwinds. Their share is 86.2% of all global venture capital funding for AI, reaching $79.74 billion in 2025.
So far in 2024, North American startups have captured 75.6% of the total VC AI funding, $106.24 billion. Europe has pledged to take the reins of the world on all aspects AI. It was only able to generate $6.4 billion of investments through 742 deals in that period. At the same time, Asia-based AI startups only brought in $3 billion across 515 deals. This just underscores the degree to which North American firms have raced far ahead of their international competitors.
Geoffrey Hinton, generally considered the Godfather of AI. He has spoken out against the ways in which political decisions can impede the advancement of science. He stated:
“because of the huge damage he is doing to scientific institutions in the U.S.” – Geoffrey Hinton
Export controls affecting certain Asian countries’ ability to obtain AI chips may contribute to the U.S.’s position as a leader in AI investment. Such restrictions have recalibrated competitive dynamics in ways that make it more difficult for Asian startups to fully compete on the global stage.
North America, as Kyle Wiggers, TechCrunch’s AI Editor, writes, retains the AI investment lead. The international environment for funding everything AI is shifting fast. PitchBook data indicates that Asia-based startups have fared worse than European ones so far in this investment downturn. This unfortunate trend imposes even more challenges on innovators from outside North America.