AI's $20B Boom Overshadows Crypto's $861M VC Haul in 2025

Crypto venture funding in the U.S. reached $861 million in Q1 2025, but artificial intelligence (AI) dominated with nearly $20 billion, according to Pitchbook. Investors closed 795 AI deals from January to March, with major rounds like Databricks’ $15.3 billion raise and Anthropic’s $2 billion funding grabbing headlines.

Crypto’s biggest deal was Abu Dhabi’s $2 billion investment into Binance—the first institutional placement in the exchange. Other notable raises included Mesh’s $82 million, Bitwise’s $70 million, and Sygnum’s $58 million.

Pitchbook data reveals AI startups attracted one-third of global VC funding in 2024, totaling $131.5 billion across 4,318 deals, compared to crypto’s $4.9 billion across 706 deals. Historically, AI has consistently secured more funding, with venture investments skyrocketing from $670 million in 2011 to $36 billion in 2020. The only exception was 2021 when crypto briefly outpaced AI, pulling in $30 billion against AI’s $22.3 billion.

The rise of AI models and major funding rounds suggest investor preference leans heavily toward AI. However, crypto’s funding dynamics differ, as projects often rely on alternative capital sources like airdrops. A Dragonfly report found that between 2020 and 2024, the 11 largest airdrops generated $7 billion, injecting liquidity directly into users' hands and boosting token treasuries.

While AI dominates VC funding, crypto continues to evolve with unique financial mechanisms. Whether this divide will persist depends on market conditions and technological advancements in both sectors.