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Artificial intelligence is now at the center of the global technology race. Around the world, countries see AI as a key tool for future economic growth, national competitiveness, and technological leadership. Among all nations, China and the United States stand out as the two biggest players, investing more money, talent, and infrastructure into AI than anyone else.
According to Startup Genome, Beijing and Silicon Valley are the two leading cities in the world when it comes to AI startup funding concentration. Beijing is slightly ahead, with around 66% of local venture capital flowing into AI-focused startups.
In the United States, companies such as OpenAI, Google, Microsoft, Amazon, and Meta continue to invest billions of dollars in AI research, software tools, and data center infrastructure. At the same time, China’s government and major technology firms—Baidu, Alibaba, Tencent, and Huawei—are rapidly expanding their work in AI models, chips, and cloud platforms. Both countries are running large-scale projects aimed at increasing computing power and strengthening their domestic AI ecosystems.
China and the United States are the two main centers of the global AI race, with China rapidly increasing government-led and private investment into AI startups and infrastructure.The United States still leads in total investment, innovation depth, and computing power.Europe is also building strong AI hubs, with Paris currently leading the region in AI funding, followed by other growing centers such as Amsterdam, Stockholm, Zurich, and London.
🇨🇳China
China has clearly made artificial intelligence a national priority. According to analysts, China’s total spending on AI in 2025 is expected to range between US$84 billion and US$98 billion. The large share of this investment comes from government programs and major internet companies. Baidu, Alibaba, Huawei, and Tencent are the leading technology companies of China that receive policy support and funding incentives.
Beijing, the capital of China, leads the AI First-Movers ranking with 66.2% of AI funding. Shanghai follows with 21.5%, and Hangzhou also ranks among the top 20 global AI ecosystems.
China is also investing heavily in large data centers and domestic chip development. For example, a planned US$37 billion data center hub in Wuhu is designed to support AI computing needs and reduce reliance on foreign infrastructure.
At the same time, Chinese firms are developing and using locally designed AI chips to reduce dependence on imported hardware, especially in response to export restrictions from the United States. While China still trails the U.S. in total computing power, it is clearly working to close that gap over time.
🇺🇸United States
The United States remains the world’s most powerful AI innovation center. In the AI first-movers ranking, Silicon Valley ranks second globally, with 62.4% of its startup funding going into AI—just slightly behind Beijing. The U.S. also has several other cities in the global top 20, including Seattle, New York City, Washington DC, Boston, Atlanta, and Los Angeles.
Even though Beijing leads in funding share, Silicon Valley still attracts the largest amount of AI investment in absolute dollar terms. Another major strength of the U.S. is computing power. America’s powerful cloud giants as Google, Microsoft, Amazon, and OpenAI operate massive data center networks that support advanced AI training and deployment. Estimates suggest U.S. private AI investment has exceeded US$109 billion, far higher than comparable spending in China.
Studies also show that around 75% of the world’s AI computing power is located in the United States, compared with roughly 15% in China. This gives U.S. researchers and startups a major edge in developing large and powerful AI models.
🌍Europe
In Europe, Paris leads the region in AI funding, ranking fourth globally with 43.2% of venture capital going to AI startups. Other European cities in the top 20 include Amsterdam-Delta, Stockholm, and Zurich, which shows that AI growth is spreading across the continent.
European governments are supporting AI in many ways, such as providing money for research, helping startups get started, and training people with AI skills. Although Europe spends less on AI compared to China and the U.S., it focuses strongly on making AI ethical, practical, and useful for real-world problems.
Beyond China, U.S. and Europe, several other countries are becoming important AI players.
In Canada, the Toronto–Waterloo region has become one of the world’s leading centers for AI development. About 50% startup funding in this region goes to AI companies, which makes it one of the places with the most money being invested in AI.Cities such as Singapore and Tokyo are also doing well in AI. In Singapore, about 17% of all startup funding goes to AI companies, and in Tokyo, around 16% of funding is focused on AI.Bangalore and Karnataka in India are quickly becoming important hubs for AI and startups. The region has a large pool of skilled tech workers.
Conclusion
China and the United States clearly dominate AI venture funding. China relies on government support and quickly growing AI ecosystems. The U.S. benefits from well-established capital markets, advanced computing resources, and leadership in innovation. At the same time, AI progress is becoming more global. Countries across Europe, Asia, and other regions are building robust AI ecosystems.
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