AI At The Top Of Investors' Priorities In 2025, According To JPMorgan

AI no longer charms, it captures. At the beginning of 2025, it establishes itself as the undisputed Eldorado of venture capital, absorbing the majority of technological funding, according to JPMorgan. This algorithmic rush driven by record valuations reflects a profound market shift, between excessive hopes and signs of saturation. Here is why this frenzy raises questions.

AI captures the bulk of venture capital investments at the start of 2025

Artificial intelligence no longer just headlines the news: it absorbs the majority of financial flows. In the first quarter of 2025, it rose to the top of the venture capital food chain, eclipsing other technological sectors. The J.P. Morgan Venture Beacon report presents this unprecedented concentration: AI companies accounted for nearly 60% of all late-stage investments.

This shift towards AI is no coincidence: it reflects investors’ obsession with high-leverage technological narratives. But it also raises the question of a possible speculative bubble fueled by algorithmic promises.

AI Startups: record valuations, high strategic expectations

AI startups have taken the lead at the expense of non-AI projects. This preference resulted in particularly favorable financing conditions:

• Valuations 12% to over 150% higher in series rounds;
• Mega funding rounds reaching valuations 8.8 times higher than average;
• Record fundraising, with seven times more capital raised in AI projects.

This level of financial exuberance crystallizes heavy expectations: automation, scalability, cross-sector disruption. But as rounds follow one another, founder dilution lessens, “pay-to-play” clauses multiply, and boards shrink. The market demands immediate and sustained returns from AI. A risky bet on a technology whose uses are still in the appropriation phase.

The venture capital market shows signs of contraction

This domination of AI in venture capital in Q1 2025 scarcely masks a structural slowdown in venture capital. Indeed, transaction sizes have dropped by up to 31%, and overall valuations have fallen by 37%. This paradox illustrates a system under strain: AI captures attention, but the overall market is faltering.

This imbalance recalls the situation of bitcoin, which attracts massive capital during its bullish phases while coexisting with persistent distrust of the broader crypto ecosystem. Like BTC in 2021, AI today concentrates hopes and excesses. This refocusing exposes venture capital to volatility amplified by the homogeneity of financial bets.

The meteoric rise of AI attracts capital, but this concentration could lead to a speculative bubble similar to bitcoin’s. Meanwhile, Jamie Dimon, CEO of JPMorgan, criticizes the idea of storing bitcoin for national security, rather advocating for weapons. These divergences underline the uncertainty surrounding the sustainability of these technological investments.