While some analysts have expressed concerns about a potential bubble in AI-related stock, new data from S&P Global Market Intelligence shows that funding for generative AI applications reached a record high in 2025, propelled by several megadeals for developers of frontier foundation models.
Nor was there any real slowdown in Q4 2025. It was the second-strongest on record for generative AI applications, with significant contributions from OpenAI's $40 billion funding round and Anthropic PBC's $15 billion round.
Despite concerns about high valuations and potential "circular financing," demand for GenAI technologies remains robust, the study found. Surveys indicate that 46% of US adults reported using a GenAI tool, with projections suggesting this could approach 100% over time.
In 2025, GenAI application startups raised over $95 billion, marking a significant increase from previous years, S&P Global Market Intelligence reported. This surge was largely driven by several megadeals for developers of frontier foundation models.
In addition, AI infrastructure funding reached a record $35 billion in 2025, up from $30 billion in the prior year. The researchers also noted that the competition among large hyperscalers and frontier AI labs has led to a substantial influx of capital into the GenAI theme. This trend has initiated another cycle in venture capital funding, contributing to a recovery in technology M&A and IPOs.
