Funding for artificial intelligence (AI) companies totaled $47.3 billion globally in Q2 2025, the second-highest quarter on record and the third straight quarter above $40 billion according to CB Insights’ report The State of AI (Q2 2025). Total first half 2025 funding outpaced 2024 funding, raising $116.1 billion versus 2024’s $104.7 billion. Deal volume reached 1,403, up 2.5% from the first quarter, bringing the total number of AI deals in 2025 to 2,772. Deals in the US dominated activity, capturing $39.7 billion, or approximately 84% of global funding, in 728 deals.
Investors. Venture capital (VC) funds account for the majority of investments, making up 34% of all investors in the first half of the year, with the median annual VC investment at $9.5 million. Private equity (PE) and asset/investment management investors account for 13% of investors, but the median PE investment is $25 million and median asset/investment management investment is $16.3 million. Corporate venture capital arms account for just 8.5% of investors but have a higher median investment of $16.5 million. Incubators, accelerators, and angel investors account for 10%, with angel investors investing a median of $4.8 million per round.
Late-stage deals. Early-stage startups account for the majority of transactions, making up 72% of AI deals year-to-date. Still, late-stage companies raised substantial rounds at steep valuations. Median late-stage round size rose to $73.5 million in 2025, up from $41 million in 2024. In a Series D round, xAI raised $5 billion from undisclosed investors, while Anduril raised $2.5 billion in a Series G round.
Mega rounds and unicorns. Mega-rounds (financing rounds $100 million or more) contributed $36.4 billion in 61 deals, representing 77% of quarterly funding. Unicorn creation accelerated, with 15 new unicorns in Q2, bringing the global total to 302. New unicorns include Thinking Machines Lab ($10 billion valuation), Supabase ($2 billion), and Pathos ($1.6 billion).
Exits. As AI, as an industry, continues to evolve, startups are electing to stay private longer and tapping the private markets longer prior to going public. IPO activity has been modest, with 11 IPOs completed in the first half of 2025. Among the largest IPOs in 2025, AI companies Caris Life Sciences and Omada Health raised $6.0 billion and $1.1 billion through their IPOs, respectively. M&A activity for AI start ups surged to a record 177 deals, double the five-year average of 89. Total M&A activity for the first half of 2025 reached 281 deals.
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