While some analysts have expressed concerns about a potential bubble in AI stocks, new data from S&P Global Market Intelligence shows that funding for generative AI applications reached a record high in 2025, driven by some mega deals for developers of frontier foundation models.
There was no real slowdown in Q4 2025 either. With significant contributions from OpenAI’s $40 billion funding round and Anthropic PBC’s $15 billion funding round, it was the second-strongest revenue ever for a generative AI application.
Demand for GenAI technology remains strong despite concerns about high valuations and potential “cyclical financing,” the study found. Research shows that 46% of U.S. adults report using GenAI tools, with predictions that this could approach 100% over time.
S&P Global Market Intelligence reports that GenAI application startups raised more than $95 billion in 2025, a significant increase from the previous year. This surge was primarily driven by several mega deals for developers of Frontier infrastructure models.
Additionally, funding for AI infrastructure reached a record $35 billion in 2025, up from $30 billion the year before. The researchers also noted that competition between large hyperscalers and frontier AI labs is driving a significant influx of funding into GenAI themes. This trend is driving a new cycle in venture capital funding and contributing to a rebound in technology M&A and IPOs.
