Key Takeaways
- • AI companies captured $355.9 billion of the $412.7 billion in total US venture capital deployed in the first half of 2026, roughly 86% of dollars invested, according to PitchBook and the NVCA second-quarter Venture Monitor.
- • Four companies, OpenAI ($122 billion), Anthropic ($30 billion), xAI ($20 billion) and Waymo ($16 billion), accounted for nearly two-thirds of global venture funding in H1 2026, per PitchBook data.
- • North American venture deal count fell roughly 26% year over year while total dollars invested rose about 190%, indicating capital concentration in fewer companies.
- • Carta data shows AI foundation model startups raising Series A rounds carried a median valuation of $300 million versus $55 million for non-AI startups at the same stage, a 5.5x gap.
- • The share of Series A companies advancing to a Series B within two years has reportedly fallen from about 25% to about 9%, per venture researchers tracking the funding funnel.
Summary
AI startups are now absorbing the large majority of US venture capital, leaving non-AI companies competing for a shrinking share of the market. According to PitchBook and the National Venture Capital Association's second-quarter Venture Monitor, AI companies took $355.9 billion of the $412.7 billion in total US venture capital deployed in the first half of 2026, roughly 86% of the total. Crunchbase's quarterly tally puts AI's share of global venture funding at 64% by the third quarter, down from above 80% earlier in the year but still dominant. Under either measure, AI commands the clear majority of capital.
Concentration is most acute at the top of the market. According to PitchBook data, OpenAI raised $122 billion in H1 2026, with Anthropic adding $30 billion, xAI $20 billion and Waymo $16 billion. Those four companies accounted for nearly two-thirds of global venture funding in the period. Over the same stretch, North American deal count fell roughly 26% year over year even as total dollars invested rose about 190%. The article also notes that the five largest US venture deals in Q1 2026, OpenAI, Anthropic, xAI, Waymo and Databricks, absorbed 73% of US venture dollars that quarter.
The article compares the current concentration with the dot-com peak, when internet companies captured roughly 50% of venture capital. It argues that AI's current share is meaningfully higher as a proportion of the total market. It also acknowledges a key difference: today's AI leaders, including Nvidia, Microsoft and Alphabet, are profitable businesses trading at multiples well below dot-com extremes.
The effects reach smaller companies. Carta, which tracks cap tables for thousands of private companies, found that AI foundation model startups raising Series A rounds had a median valuation of $300 million, compared with $55 million for non-AI startups at the same stage. Rounds of $100 million or more now make up 87.5% of US venture capital deployed, up from 43.8% in 2024. The article also cites venture research showing that roughly 25% of companies closing a Series A previously went on to raise a Series B within two years, a figure that has reportedly fallen to about 9%.
The article warns that the concentration leaves the sector exposed to a reversal, whether from slowing enterprise AI adoption, funding gaps at heavily capitalized AI labs, or investors reassessing returns relative to capital deployed.
Concentration is most acute at the top of the market. According to PitchBook data, OpenAI raised $122 billion in H1 2026, with Anthropic adding $30 billion, xAI $20 billion and Waymo $16 billion. Those four companies accounted for nearly two-thirds of global venture funding in the period. Over the same stretch, North American deal count fell roughly 26% year over year even as total dollars invested rose about 190%. The article also notes that the five largest US venture deals in Q1 2026, OpenAI, Anthropic, xAI, Waymo and Databricks, absorbed 73% of US venture dollars that quarter.
The article compares the current concentration with the dot-com peak, when internet companies captured roughly 50% of venture capital. It argues that AI's current share is meaningfully higher as a proportion of the total market. It also acknowledges a key difference: today's AI leaders, including Nvidia, Microsoft and Alphabet, are profitable businesses trading at multiples well below dot-com extremes.
The effects reach smaller companies. Carta, which tracks cap tables for thousands of private companies, found that AI foundation model startups raising Series A rounds had a median valuation of $300 million, compared with $55 million for non-AI startups at the same stage. Rounds of $100 million or more now make up 87.5% of US venture capital deployed, up from 43.8% in 2024. The article also cites venture research showing that roughly 25% of companies closing a Series A previously went on to raise a Series B within two years, a figure that has reportedly fallen to about 9%.
The article warns that the concentration leaves the sector exposed to a reversal, whether from slowing enterprise AI adoption, funding gaps at heavily capitalized AI labs, or investors reassessing returns relative to capital deployed.
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