AI Startups Dominate Venture Capital, Capturing 41% of $128 Billion as Funding Concentrates Among Elite Few

AI startups are dominating venture capital, capturing 41% of $128 billion raised on Carta last year, with just 10% of companies securing half of all funding as giants like OpenAI and Anthropic raise tens of billions in a increasingly K-shaped market.

• AI startups account for 41% of the $128 billion in venture dollars raised on Carta last year, with just 10% of startups capturing half of all funding, including giants like OpenAI, Anthropic, and xAI raising tens of billions at record-breaking valuations.
• The venture market is now K-shaped, with capital concentrated among a select few firms backing a handful of companies, as fewer but larger rounds are being raised to cover the high costs of running AI models rather than growing large workforces.
• Funds raised in 2023 and 2024 are posting the highest internal rates of return compared to older vintages, driven largely by AI-native portfolios, though experts caution that paper gains may not yet reflect real-world exits via IPOs or acquisitions.