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. GlobalData reported that funding for genAI in the US soared past $50 billion in the first five months of 2025 alone, with more than 200 deals already announced. The number of VC deals surged from around 50 in 2020 to more than 600 in 2024.
Deal values in the US also skyrocketed from around $800 million in 2020 to $39 billion in 2024 and have already surpassed the $50 billion mark in the first five months of 2025. In contrast, China, another leading AI nation, has seen much slower growth. GlobalData found that while there was an uptick in growth at the start of the year, VC funding still lags far behind the US.
U.S. dominance in genAI investment
With just one deal struck in 2020, the country peaked at 39 deals in 2024 and has announced 14 deals so far in 2025. The value of these deals is also lower in China, with $40 million raised in 2020 and $140 million in 2024.
So far in 2025, VC funding in China has hit $250 million. Aurojyoti Bose, lead analyst at GlobalData, said the growth trajectory positions the US as a powerhouse in genAI investment. “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.”
Regarding China, Bose noted that the country’s struggles to attract investment reflect broader issues within its technology ecosystem, including regulatory constraints.
This disparity in funding highlights the growing gap between the two nations in the rapidly evolving field of generative AI, with the US leading the charge in both deal volume and value.
