Globally, AI was an incredibly hot sector for VC investment throughout 2025, attracting a record-level of funding by a large margin. Q4’25 was no exception. During the quarter, eight AI-focused companies in the US raised $1 billion+ funding rounds; in addition to the large raises by Anthropic and Project Prometheus, Anysphere raised $2.3 billion, Reflection AI raised $2 billion, Polymarket raised $2 billion, Lambda raised $1.5 billion, and Crusoe raised $1.4 billion.
AI also attracted numerous investments across other jurisdictions, if at smaller deal sizes. In Asia, Australia’s Firmus Technologies raised $541 million, China-based Didi Autonomous Driving raised $280 million, and Japan-based Mujin raised $235 million. In Europe, France-based Brevo raised $578 million, Germany-based Black Forest Labs raised $300 million), and UK-based Synthesia raised $200 million.
The diversity of AI investments globally highlights the rapid evolution and expansion of the AI space as increasing numbers of startups work to transform industries and day-to-day activities using AI. Investment trends have evolved nearly as rapidly, with VC investors shifting away from broad-based investments. Investors are increasingly focusing on backing proven AI innovators and businesses with not only transformative business models, but defensible ones that cannot easily be replaced by the next AI startup coming down the pipe. Particular areas of investment during Q4’25 included areas like data centres and other AI infrastructure, small language models, robotics, and niche vertical solutions.
