At the beginning of 2025, there is a sharp increase in investments in artificial intelligence, causing both admiration and concerns among venture capitalists. At the same time, cryptocurrencies are slowly recovering amid this excitement.
Investments in AI: Records and Concerns
In Q1 2025, 57.9% of global venture capital investments, amounting to $73.1 billion, were directed towards AI startups. The largest share of investments was raised by OpenAI, which secured $40 billion. As noted in the PitchBook report, it is the 'fear of missing out' that fuels investors’ eagerness to invest in AI. However, the unchecked growth raises concerns as many investors overlook clear business models.
Cryptocurrencies Return to the Market
Meanwhile, cryptocurrencies are showing signs of recovery, raising $4.8 billion in Q1 2025. This is significantly higher compared to the $1.1 billion in Q4 2024. A key event was the deal in which the MGX fund invested $2 billion into Binance. This revitalization is linked to regulatory changes in the United States, which have become more favorable for the cryptocurrency market.
Economic Instability and the Future of Technology
Despite the rapid growth of AI and the recovery of cryptocurrencies, the overall market faces instability. The PitchBook-NVCA report highlights that the current year may be one of the worst in the past decade in terms of new commitments. Political uncertainty also risks impacting future investments and the IPO of tech companies.
In Q1 2025, artificial intelligence absorbed nearly 60% of venture investments, while cryptocurrencies are slowly recovering, raising $4.8 billion. This contrast underscores the complex and dynamic nature of technology and funding markets.
