Global investment in generative AI (GenAI) has skyrocketed, reaching $49.2bn in the first half of 2025—already surpassing the full-year total for 2024 ($44.2bn) and more than doubling 2023’s figure of $21.3bn, according to EY Ireland’s latest Generative AI Key Deals and Market Insights report.
While the number of deals fell nearly 25% compared to the second half of 2024, the overall value soared, reflecting a shift in investor appetite towards more mature, revenue-generating GenAI businesses.
Average late-stage deal size more than tripled to $1.55bn, with early-stage and seed funding holding flat or declining.
Several standout deals have driven this growth, including SoftBank’s potential $40bn investment in OpenAI, xAI’s $10bn round, and multi-billion dollar raises for Databricks, Anthropic, and others.
Agentic AI—a field focused on autonomous decision-making—has also seen increased traction, highlighted by Capgemini’s $3.3bn acquisition of WNS and Parloa’s $120m raise.
Closer to home, the acquisition of Irish media analytics firm NewsWhip by Sprout Social, while not included in the H1 data, signals growing international interest in Irish AI capabilities.
Commenting on the findings, Grit Young, EY Ireland’s Technology, Media and Telecoms Lead, said: “GenAI continues to reshape the investment landscape at an extraordinary pace...
“The recent results from the ‘Magnificent Seven’ underscore how rapidly this technology is being adopted by customers, and we would expect that the investment trajectory is likely to accelerate through the second half of the year and beyond.”
Ireland has established itself as a strong adopter of AI, with 63% of startups utilising the technology, and 36% embedding it at the core of their business models.
However, many Irish AI startups remain challenged in accessing funding, particularly in the €1m to €10m bracket.
“Many high-potential startups find themselves in a difficult middle ground... However Ireland has a deep and well-established pool of talented entrepreneurs,” said Young.
Globally, the US continues to dominate GenAI funding, capturing 97% of global deal value.
The Middle East, particularly Saudi Arabia, is growing in influence, while Europe lags with just 2% share.
Looking ahead, platforms offering sector-specific GenAI applications—from cybersecurity to compliance—are expected to draw increasing VC attention.
