But this week’s chart shows something just as important. It shows just how aggressively capital is chasing it.
And the numbers behind it are unlike anything we’ve ever seen before.
A Flood of Capital
This week’s chart is based on data from Crunchbase.
As you can see, this isn’t normal activity. Global venture funding has already pushed to historic levels in the first quarter of this year, reaching $300 billion.
But the bigger story is that AI accounted for the overwhelming majority of it, roughly $242 billion.
To put this in perspective, AI alone is pulling in more capital in one quarter than the entire VC industry deployed annually during the dotcom era.
Even during the 2021 venture boom, the biggest quarters topped out around $150 to $180 billion globally. And that was across every sector combined.
But that’s what’s so crazy about today’s numbers. Because they don’t represent broad-based growth.
Today’s VC funding is highly concentrated.
OpenAI raised roughly $122 billion in the quarter, which means a single company absorbed about 40% of all venture capital globally, and roughly half of all AI funding.
Even during the dotcom era, venture capital was spread across thousands of companies. It never concentrated like this in a single player.
In fact, just four companies — OpenAI, Anthropic, xAI and Waymo — accounted for roughly two-thirds of all venture funding in the quarter.
So while the headline number looks like a rising tide, what’s really happening is that capital is piling into a very narrow part of the market.
That should tell you how investors think about AI. And it’s something I’ve been pounding the table about for months.
AI isn’t being treated like just another software wave.
It’s being treated like vital infrastructure.
Instead of $10 million or $50 million rounds, AI companies are raising $10 billion, $20 billion or even $100 billion at a time.
Those are the kinds of numbers you expect to associate with building energy grids or telecom networks.
And what makes it even more striking is how quickly it’s happening.
In 2025, AI companies raised about $211 billion for the entire year, accounting for roughly half of global venture funding last year. That was already a record.
Now we’ve effectively matched that pace in a single quarter.
In other words, what used to be a full market cycle is now being compressed into a single quarter.
Here’s My Take
There are two ways you can look at this chart.
The first is that it represents a classic bubble. There’s too much money chasing too few opportunities, with capital concentrated in only a handful of companies.
But there’s another way to look at what’s happening today. Because capital doesn’t move like this without a reason.
This chart could simply be a sign of investors trying to secure a position in what they see as the next foundational layer of the economy.
If that’s right, then what’s happening today is NOT a repeat of the dotcom boom. Back then, capital spread across thousands of startups trying to build on top of the internet.
But today it’s concentrating into the handful of companies building the foundation of AI itself.
That makes it more like a land grab than a scattershot startup boom.
And if that trend holds, then the companies absorbing this capital today won’t just ride the next wave of technology…
They’ll control the infrastructure that everything else depends on.
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
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