US AI startups are experiencing a significant surge in funding, with a 75.6% increase in the first half of 2025, reaching $162.8 billion. This boom is largely driven by the continued AI boom, with major investments from tech giants and startups alike. The AI sector accounted for 64.1% of the total deal value and 35.6% of the deal count in the first half of the year.
Notable deals include OpenAI's $40 billion round, which highlights the confidence in AI's potential, and Meta's $14.3 billion purchase of Scale AI, demonstrating the growing interest in AI technologies. Other major deals include significant investments in Safe Superintelligence, Thinking Machine Labs, Anduril, and Grammarly, showcasing the diverse applications of AI.
Despite the surge in startup funding, venture capital firms are facing challenges in raising money. VC fundraising declined by 33.7% year-over-year, with only $26.6 billion raised across 238 funds in the first half of the year. The median time for fund managers to close new vehicles has also increased to 15.3 months, the longest in over a decade.
Experts attribute the growth to companies like OpenAI and Anthropic, which are driving innovation and attracting investment. Some see a turning point, with IPOs like Hinge Health and Coreweave being well-received by the market. As the AI landscape continues to evolve, it remains to be seen how the funding trends will shape the industry.
