Late-stage GenAI deals triple, Ireland sees growing interest

According to EY Ireland, global investment in generative AI surged to $49.2bn in the first half of 2025, eclipsing the full-year total for 2024. Despite a drop in deals, total value doubled year-on-year, reflecting a pivot towards more mature and revenue-focused ventures.

Average late-stage deal size has more than tripled to $1.55bn, while early and seed-stage activity has stagnated or declined. Landmark rounds from OpenAI, xAI, Anthropic, and Databricks drove much of the volume, alongside a notable $3.3bn agentic AI acquisition by Capgemini.

Ireland remains a strong adopter of AI, with 63% of startups using the technology. Yet funding gaps persist, particularly between €1m and €10m, posing challenges for growth-stage firms despite a strong local talent base.

Sprout Social’s acquisition of Irish analytics firm NewsWhip, though not part of the H1 figures, points to growing international interest in Irish AI capabilities. Meanwhile, US firms still dominate global deal value, capturing 97%, with the Middle East rising fast and Europe trailing at just 2%.

EY forecasts that sector-specific GenAI platforms, especially in cybersecurity and compliance, will become the next magnet for venture capital through late 2025 and beyond.

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