California is in the midst of a record-shattering investment wave, fueled by the artificial-intelligence boom in Silicon Valley.
Companies based in the Golden State have drawn around $366 billion of venture capital since the beginning of the year, according to data provider PitchBook. That’s more than three times the amount of venture funding that has gone into the other 49 states combined, and nearly double California’s previous record, set in 2025. New York state ranks a distant second in venture-capital investment, with $27 billion in deals announced so far this year.
California’s funding keeps coming despite the threat of a billionaire tax that detractors, including Gov. Gavin Newsom, have warned could scare off investors. Thus far, at least, investments in the biggest AI companies are keeping the frenzy going while the state’s billionaire class waits to see if voters back the new levy in November.