Global venture capital funding reached $91 billion in the second quarter of 2025, marking an increase from $82 billion in the same period last year but a decline from the $114 billion recorded in the first quarter of 2025, according to Crunchbase and PitchBook data. Artificial intelligence (AI) investments accounted for nearly half of this funding, with 53% of all global VC funding in the first half of 2025 directed towards AI, rising to 64% for US-based companies. US startup funding surged 75.6% year-over-year in the first half of 2025 to $162.8 billion, the strongest since the first half of 2021, driven largely by the AI boom. Startup acquisitions also crossed $100 billion in the first half, a 155% increase year-over-year, with significant capital flowing into enterprise software and healthcare sectors alongside AI. The AI boom is influencing physical investment in the US tech sector, with net holdings of property, plant, and equipment by tech companies rising by a record $154 billion over the past year. In the stock market, AI is emerging as a key factor differentiating technology leaders from laggards, with companies like Nvidia, Meta, and Microsoft posting gains over 20%, while Apple and Alphabet have experienced declines. Wall Street analysts, including Bank of America's Savita Subramanian, highlight AI as a transformative tool for corporate automation. Despite strong AI-driven momentum, some investors remain cautious, as seen in Amazon's shares lagging behind expectations for AI impact.