Tech investments surge to $200B in Q2 2025 as AI drives recovery

Tech investments surged to $200 billion in Q2 2025, representing 40% of all global venture funding, M&A, and IPO activity according to PitchBook, a market research firm. This substantial capital influx signals a steady recovery from a two-year downturn caused by high borrowing costs, macroeconomic uncertainty, and the correction from inflated COVID-era valuations.

What you should know: The second quarter built on first quarter gains, with AI and supporting infrastructure driving renewed dealmaking despite ongoing investor concerns about inflation and geopolitical risks.

Key details: Major transactions dominated the quarter’s investment landscape, showcasing the scale of capital deployment across fintech, AI, and enterprise software sectors.

• Capital One led with its $35 billion acquisition of Discover, included due to its fintech business operations.
• Meta invested $14 billion in Scale AI, demonstrating big tech’s commitment to AI infrastructure.
• Salesforce acquired Informatica for $8 billion, expanding its enterprise software capabilities.
• OpenAI spent $6.5 billion on Jony Ive and his io devices company, signaling hardware ambitions.

The big picture: The tech industry is emerging from a challenging period marked by high borrowing costs and macroeconomic uncertainty that had dampened investment activity for two years.

• COVID-era valuations and hiring practices had created unsustainable market conditions.
• Current investment levels suggest investors are regaining confidence in tech fundamentals.
• AI demand is serving as a primary catalyst for renewed dealmaking activity.

Market highlights: Public market activity also showed strength, with crypto firm Circle completing the quarter’s largest IPO by raising more than $1 billion.

Why this matters: The sustained investment momentum across two consecutive quarters indicates that tech’s recovery may be gaining durability, though investors remain cautious about persistent inflation pressures and global political risks that could impact future funding cycles.