If you’re not an AI startup, good luck raising money from VCs (techcrunch.com)

PitchBook data shows venture capital is overwhelmingly concentrating in AI: through 2025 VCs have funneled $192.7 billion into AI startups out of $366.8 billion total, and the most recent quarter saw AI capture 62.7% of U.S. VC dollars and 53.2% globally. If trends hold, 2025 will be the first year AI accounts for more than half of all VC investment. Capital is flowing to marquee names—Anthropic’s $13 billion Series F in September is a standout—while the broader funding pool is shrinking: only 823 funds were raised globally in 2025 versus 4,430 in 2022. PitchBook’s research director warns the market is “bifurcated” — you’re either in AI or you’re not, and you’re either a big firm or you’re out. For the AI/ML community this signals both opportunity and risk. The influx prioritizes compute-heavy, scalable model plays and commercialization over smaller, non-AI or early-stage projects, raising the bar for talent, infrastructure, and capital intensity. It also increases concentration risk—fewer active funds and large bets on a handful of leaders can amplify valuation froth and reduce support for diverse research directions. Practically, developers and researchers should expect fiercer hiring competition, more funding for production-ready model companies, and a venture landscape that favors scale and clear monetization paths over exploratory research.