Notwithstanding the perception of a growing hostile environment for AI research and development, North America remains the primary recipient of AI venture capital, according to data compiled by PitchBook, a leading investment tracker.

Between February and May of this year, venture capital firms invested a substantial $69.7 billion in AI and machine learning startups based in North America, spanning 1,528 deals. In contrast, European AI ventures secured $6.4 billion in funding across 742 deals during the same period.

Asian startups have experienced relatively limited investment, with PitchBook reporting that VCs invested merely $3 billion in Asia-based AI startups across 515 deals between February and May.

Under the presidency of Donald Trump, the United States has undergone significant changes that have impacted the AI landscape. The administration has drastically reduced funding for scientific grants related to basic AI research, imposed stricter regulations on international students pursuing AI studies in the U.S., and threatened to dismantle university-based AI labs by freezing federal funds. Furthermore, the administration’s trade policies, including retaliatory tariffs, have created a challenging market environment that discourages investment in new AI ventures.

In a recent post on X, AI pioneer and Nobel Laureate Geoffrey Hinton criticized billionaire Elon Musk, who previously advised Trump’s Department of Government Efficiency, for his perceived negative impact on scientific institutions in the U.S. Hinton called for Musk’s expulsion from the British Royal Society, citing the “huge damage” he is causing.

Given the uncertain environment in the U.S., one might anticipate that Europe, which has committed to becoming a global leader in AI, would attract more venture capital investment. The EU has dedicated hundreds of billions of euros to support AI development within its member countries and already boasts successful, well-funded AI startups. Nevertheless, this expected shift in global investment has not materialized, and there is no indication of a significant VC exodus to the bloc or a substantial increase in AI funding overseas.

Similarly, China, which has given rise to prominent AI startups like DeepSeek and Butterfly Effect, has not experienced a notable surge in VC activity. The country’s export controls, which restrict the procurement of AI chips, are likely a contributing factor to this relatively austere investment environment.

In 2024, North American startups secured 75.6% of all VC AI funding, totaling $106.24 billion. This year, the share of North American AI investments has increased to 86.2%, representing $79.74 billion of all VC funding for AI globally.

This trend presents a somewhat unexpected picture, as the U.S. remains the undisputed hub for AI capital, despite the mounting political and regulatory challenges under Trump’s second term. Investors, although wary of the administration’s unpredictability, continue to rely on U.S. innovation to deliver substantial returns, at least for the time being.