Despite rising political challenges and growing threats to research funding under the administration of President Donald Trump, North America continues to dominate global venture investments into artificial intelligence startups.
Recent data reveals that from February to May of this year alone, North American startups drew an impressive $69.7 billion from venture capitalists across 1,528 deals. In contrast, the European AI sector attracted only $6.4 billion across 742 deals. Asia lagged even further behind, capturing just $3 billion from 515 investments within the same period.
Historically seen as the global powerhouse of AI innovation, the U.S. faces new hurdles as the Trump administration’s budget cuts slash federal financing for foundational AI research. Additionally, stringent visa and immigration policies have hindered foreign talent from studying and working in American AI research centers, even prompting threats to dismantle certain university-based AI labs through withholding billions in federal grants.
Compounding these obstacles, the Trump administration’s volatile trade stances and retaliatory tariffs have complicated market conditions, making them particularly difficult for emerging and experimental AI ventures. Elon Musk, Tesla and SpaceX CEO and former White House senior advisor who until recently assisted in efforts to streamline governmental costs, drew criticism from AI pioneer Geoffrey Hinton. In March, Hinton publicly called for Musk’s removal from the prestigious Royal Society due to what he characterized as Musk’s harmful influence on scientific institutions in the U.S.
Considering Europe’s ambitious strategic positioning—as the region has strongly committed to becoming a leading global hub for AI research and innovation—one might expect European AI startups to attract a greater share of venture-capital funding. The EU has pledged investment in the hundreds of billions of euros to drive innovation and has nurtured prominent startups such as Mistral, Aleph Alpha, and H. Yet, despite favorable conditions in Europe coupled with U.S. political instability, no substantial migration of venture capital dollars to European AI companies has materialized.
Similarly, Asia has not capitalized on the turbulence affecting the U.S. market to significantly capture a larger share of AI investment. Despite the emergence of notable companies like DeepSeek and Butterfly Effect’s Manus platform, Asia’s investment climate remains relatively subdued, partly due to stringent export control restrictions affecting tech acquisitions, especially AI-related semiconductor chips.
This unwavering investment focus on North America is underscored by data showing a dramatic increase in the region’s share of global AI venture capital. In 2024, North American AI startups secured 75.6% of the aggregate AI venture capital funding, totaling $106.24 billion. Now, in 2025, that proportion has ballooned to 86.2%, translating into $79.74 billion already invested this year.
These statistics paint an intriguing picture. Despite significant political, regulatory, and market hurdles presented by the Trump administration’s policies, North America—particularly the U.S.—remains the uncontested leader in AI innovation funding. Investors clearly retain confidence that American-based AI ventures will yield superior innovation and return potential, even in the midst of ongoing political unpredictability.
