The current AI investment boom is creating unprecedented geographic concentration, with the Bay Area capturing nearly 70% of all U.S. venture capital in Q1 2025 5.This represents a reversal of the post-pandemic trend toward geographic diversification, when remote work enabled startup formation across more diverse locations.While US startups dominate the AI funding landscape, Europe’s venture ecosystem shows resilience with €16.7 billion ($18.1 billion) raised in Q1 2025, projecting a 10.8% year-over-year increase despite lower deal counts 2.The regional funding disparity is particularly pronounced in AI, with North America attracting approximately 70% of global AI deal value, creating a potential innovation gap with other regions 4.Central and Eastern Europe is emerging as a fast-growing innovation hub, particularly in defense technology, suggesting that specialized AI applications may create opportunities for geographic diversification 2.The concentration of capital in established tech hubs contradicts predictions that AI would democratize innovation, instead reinforcing existing power centers and potentially limiting diverse approaches to AI development. ……, AI investments drive 64.1% of total deal value in H1 2025 VC fundraising declines 33.7% year-over-year, faces longer timelines Exit activity up 40%, optimism for IPOs and M&A in H2 July 15 , US startup funding increased by 75.6% in the first half of 2025, reaching US$162.This performance is the strongest since the same period in 2021, mainly due to investments in AI..