California venture capital hits record $366 billion driven by AI

California is experiencing a record-breaking venture capital surge, with companies in the state attracting approximately $366 billion since the start of 2026. This figure is nearly double California’s previous annual record and more than triple the amount raised by companies in the other 49 U.S. states combined, according to PitchBook data.

The boom is primarily driven by the rapid expansion of artificial intelligence. U.S. startups raised more than $400 billion during the first half of 2026, surpassing all previous full-year totals. The majority of this capital has been directed toward AI companies and financings exceeding $100 million.

However, the market recovery is described as uneven. While leading AI companies with proprietary technology and data advantages are receiving significant attention, other sectors—including many early-stage and non-AI businesses—face longer fundraising processes and increased pressure to demonstrate revenue paths.