The Early Innings of the AI Renaissance

A deep dive analysis into the AI startup landscape in Q1

Author

Jonathan Chang
April 15, 2025

Happy Tuesday Brex community,

We’re in the early innings of the AI Renaissance.

The last half decade saw experimentation in GPT-3 wrappers, generative AI, and LLMs. We are now seeing the generational AI companies of tomorrow take form with a full-blown transformation in how software gets built, sold, and scaled.

Over $5.7B was invested into US-headquartered AI startups (preseed through Series D) this quarter, with funding peaking in February and over the quarter, around 100+ deals were getting done each month. We’re seeing VCs take many and large swings into AI and the numbers don’t lie, it’s not stopping anytime soon.

Data via Pitchbook

Data via Pitchbook

Where is this happening? Unsurprisingly, California dominated with 77% of capital for deals. New York followed at 7%, with Washington, Texas, Massachusetts, and Florida trailing behind. The takeaway: California, more specifically San Francisco, is still the gravitational center of AI. No where else compares and we’ve firsthand seen flocks of talented founders and operators move back into San Francisco after spending the last few years in Miami, Austin, and beyond.

Data via Pitchbook

Whether you’re building, investing, or just trying to keep up, we hope this snapshot gives you a pulse on where the future of AI is headed. 

Let’s keep learning, iterating, and growing together - Jonathan Chang

  • Brex Consumer GTM Panel w/ Menlo in NYC 4/15

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    Apply Here: Brex Host: Jonathan Chang

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Don’t hesitate to reach out,🦾!