Record $189B in global venture funding was raised in February — the highest monthly total ever — though 83% went to just three AI-focused companies. OpenAI secured $110B, the largest private venture round ever, while Anthropic raised $30B and Waymo (Alphabet’s self-driving unit) pulled in $16B. These three alone accounted for the majority of the capital surge, reflecting investor obsession with AI compute and tools amid public market turmoil.

Seed-stage funding dipped 11% year-over-year to $2.6B, but Series A/B rounds held steady at $13.1B, up 47%. The trend of ballooning late-stage valuations continued, with median round sizes hitting record highs. AI and hardware sectors dominated, raising $171B (90% of total funding), driven by demand for semiconductors, robotics, and autonomous vehicle tech.

Despite IPO optimism, public software stocks stumbled, with Liftoff and Clear Street withdrawing listings. Private markets, however, are surging — global venture funding already exceeds 50% of 2025’s total just two months in. U.S. startups led the charge, capturing 92% of global capital, up from 59% in 2025.

Why does this matter? The AI funding frenzy signals a seismic shift in tech investment, prioritizing infrastructure and foundational models over traditional software. As public markets falter, venture capital’s concentration in a handful of AI giants raises questions about long-term innovation diversity and market consolidation risks.