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 $114 billion in the first quarter of 2025, according to Crunchbase and PitchBook data. The rise in funding is largely driven by investments in artificial intelligence (AI), which accounted for nearly half of the global venture capital in Q2 and 53% of global VC funding in the first half of 2025. In the United States, AI startups attracted $104 billion in funding during the first half of 2025, nearly matching the total raised in 2024. US startup funding overall surged 75.6% year over year in the first half of 2025 to $162.8 billion, the strongest since H1 2021, fueled by the AI boom. Mergers and acquisitions (M&A) activity also increased, with startup acquisitions exceeding $100 billion in H1 2025, a 155% jump year over year, although much of this capital was directed toward sectors like enterprise software and healthcare rather than AI alone. Meanwhile, AI chip companies such as Groq and Cerebras Systems are pursuing substantial funding rounds, with Groq in talks to raise $600 million at a valuation of around $6 billion and Cerebras planning to raise up to $1 billion in private funding, potentially delaying its IPO. Groq has revised its revenue projections downward from over $2 billion to approximately $500 million for 2025, citing data center capacity constraints. Additionally, Surge AI, a data-labeling startup, is negotiating a $1 billion funding round at a valuation of at least $25 billion. Despite the robust investment environment, some startups like BuilderAI have collapsed amid concerns about overstating AI capabilities, highlighting challenges in the AI startup ecosystem. Overall, North America dominates the venture funding landscape, with Latin America gaining ground, Europe remaining steady, and Asia lagging behind.
.@theinformation’s Finance Reporter @MilesKruppa uncovers why @GroqInc slashed projections: "They said that they were expecting a bit over $2 billion in revenue this year." "[Now] they've been telling investors they're expecting closer to $500 million in revenue. That's a very https://t.co/3dY2gDy8Zu
Surge AI, a leading data-labeling startup, is in talks to raise about $1 billion in its first round of funding at a valuation of at least $25 billion https://t.co/ywK5JO6byj
Cerebras Systems, an AI chip startup, plans to raise up to $1 billion in private funding, a move that could delay its potential IPO this year. Read more: https://t.co/r92xi3qi3q #aichips