Global venture capital (VC) funding is rebounding significantly this year, fueled by large investments in artificial intelligence (AI).

According to new data released by CB Insights, VC funding reached US$187.2 billion in Q3 2026, pushing the year-to-date (YTD) total to US$698.3 billion. This amount marks a 108.9% rise from the same period in 2025 and sets a record high for the year.

This surge occurred even as deal volume continued to drop in Q3 2026, declining 23% quarter-over-quarter (QoQ) to 6,913 transactions and hitting a record low.

Large rounds towards AI startups drove much of the global VC surge. OpenAI, the company behind ChatGPT, raised US$132 billion in 2026 so far comprising a US$122 billion round in March 2026 and US$10 billion in October 2026. Anthropic, the creator of Claude, raised US$95 billion through a US$30 billion round in February 2026 and a US$65 billion round in May 2026. Together, these deals account for about one-third of funding so far this year.

OpenAI intends to use the proceeds to finance its substantial infrastructure commitments and bolster its balance sheet if a deterioration in the initial public offering (IPO) markets further delays its planned 2027 listing.

OpenAI says its annualized revenue has reached US$50 billion and expects that to climb to US$70 billion by the end of 2026, sources told Reuters earlier this week. The company is reportedly in talks to raise an additional US$30 billion at a valuation above US$1.4 trillion, with SoftBank and Abu Dhabi’s MGX among potential participants.

Similarly, Anthropic will use its 2026 funding to advance its safety and interpretability research, expand compute to meet growing demand for Claude, and scale the products and partnerships its customers rely on.

Anthropic’s third-quarter revenue stands at US$16.8 billion ahead of its planned IPO slated for November, CNBC reported earlier this month. The company is cashflow positive, generating US$1.70 in revenue for every dollar spent on computing power during the third quarter, according to the Financial Times. Investors expect Anthropic to reach US$110 billion in annualized revenue by year-end, the Wall Street Journal reported.

Overall, AI startups raised US$495.5 billion in the first three quarters of 2026. This gives the sector a 71% share of all global VC funding in 2026 YTD.

Global VC funding trends

Average deal size more than doubled this year, surging from US$23 million in 2025 to US$49.8 million in 2026 YTD. The effect is even more pronounced in AI, where rounds are averaging US$91.3 million in 2026 YTD, up 188% from US$31.7 million in 2025.

Mega-rounds of US$100 million and over captured roughly 80% of the Q3 2026 total at US$149.2 billion, despite representing just 299 of 6,913 deals. This marks the third straight quarter at about 80% or more.

Asia remained the second-largest recipient of VC funding, taking 31% of global activity in Q3 2026 at US$36.2 billion across 2,153 deals. In total, Asian companies secured US$99.8 billion in 2026 YTD, a four-year high and a 130% year-over-year (YoY) increase.

Singapore, in particular, saw a notable surge, raising US$6.7 billion through 72 transactions in Q3 2026. This brought the country’s YTD total to US$14.4 billion, representing an all-time annual peak and a 220% YoY rise.

European tech startups secured US$31.5 billion in Q3 2026, up 13% QoQ and the region’s highest quarterly total since Q2 2022. The amount brings the total VC funding raised in 2026 YTD to US$82 billion.

Mistral AI, Nscale, and Liverpool FC secured the three largest rounds of Q3 2026, amounting to US$3.5 billion, US$2.4 billion, and US$2.2 billion, respectively.

Mistral AI is a French AI company that develops large language models (LLMs), Nscale is a London-based, vertically integrated AI infrastructure and cloud computing company, and Liverpool FC is a professional football club based in Liverpool, England, that plays in the Premier League.

In Q3 2026, fintech remained a prominent tech vertical. The sector drew US$11.8 billion in VC funding, representing 6.3% of global VC funding in Q3 2026. Digital health also stood out, securing US$8.3 billion and accounting for 4.4% of global VC funding in Q3 2026.

As the year enters its final quarter, leaders anticipate continued strength in global venture investment, with the wider AI ecosystem drawing substantial capital.

In particular, KPMG forecasts faster growth in AI infrastructure, alongside physical AI, industrial AI, and robotics. This momentum is also expected to extend into adjacent sectors, including defense technology as governments continue to prioritize AI-enabled autonomous systems and sovereign defense capabilities, and alternative energy.

Featured image: Edited by Fintech News Singapore, based on image by magnific via Magnific