A surge of investor interest in artificial-intelligence startups is concentrating U.S. venture funding in an unprecedented way. PitchBook data show that 41% of all venture-capital dollars deployed this year have gone to just 10 AI companies, a 75% increase from the share captured by the top 10 recipients in 2024 and the biggest concentration in at least a decade. The rush is helping young AI firms close rounds quickly, often amid rapid revenue expansion that, according to The Information, has seen some startups double or quadruple monthly sales. Investors, keen to secure stakes in perceived category leaders, are circulating unsolicited term sheets despite the broader fundraising slowdown that has gripped most of the tech sector since 2022. The deal frenzy is depleting the industry’s cash reserves. Venture-capital "dry powder"—committed but unspent capital—has fallen to $221 billion in the first half of 2025 from $297 billion at the end of 2023 and is projected to sink to $164 billion by year-end, The Information reported. That would mark the lowest level since 2019 and could limit firms’ ability to support portfolio companies if public-market conditions fail to improve.