The US has emerged as the clear leader in attracting venture capital funding for generative AI, while China struggles to gain similar traction, according to research from GlobalData.
Why it matters: The disparity underscores the significant investments and supportive environments in the US that have propelled its leadership in genAI, while China continues to face challenges in matching this growth.
By the numbers: GlobalData reported:
- US genAI funding soared past $50 billion in the first five months of 2025 alone, with more than 200 deals already announced.
- The number of US VC deals surged from around 50 in 2020 to more than 600 in 2024.
- US deal values skyrocketed from around $800 million in 2020 to $39 billion in 2024.
- China peaked at 39 deals in 2024 and announced 14 deals so far in 2025, with deal values hitting $250 million in 2025.
Aurojyoti Bose, lead analyst at GlobalData, commented on the growth trajectory, highlighting the US as a powerhouse in genAI investment.
What they’re saying:
- “The underlying factors contributing to US dominance in the genAI space include a well-established VC ecosystem, a culture of innovation, and a regulatory environment that encourages investment in emerging technologies,” said Bose.
- Regarding China, Bose noted that the country’s struggles to attract investment reflect broader issues within its technology ecosystem, including regulatory constraints.
The big picture: As China continues to adapt and refine its regulatory framework, these measures underscore the importance of balancing innovation with security and ethical considerations in the fast-evolving domain of artificial intelligence.
What’s next: China’s ability to adapt and create a more favorable environment for genAI development will be crucial for its long-term competitiveness in the global tech landscape.
