OpenAI, Anthropic Lift California to a Record $385B in 2026

California startups raised $385 billion in funding rounds from seed to growth stages in 2026 so far. This is more than all US startups raised in any earlier year on record, according to a Crunchbase News report published on 26 October, based on Crunchbase data. According to the report, funding rounds for San Francisco-based OpenAI and Anthropic account for more than half of California's total.

California's total is more than twice its 2025 total of $184 billion. It also equals 75.9% of the $507 billion that US startups have raised so far in 2026, according to Crunchbase's charts. Based on our calculations, startups outside California raised about $122 billion this year, around 12% more than the roughly $109 billion they raised in 2025.

The key insight: We see this record as a sign that funding is concentrated among a small number of companies. Crunchbase reports that OpenAI and Anthropic account for more than half of California's $385 billion. Based on our calculations, US startups outside California raised about $122 billion in 2026 so far, up around 12% from roughly $109 billion in 2025.

Where the Money Went

Crunchbase said funding rounds for OpenAI and Anthropic make up more than half of California's $385 billion. However, California companies would still receive an unusually large share of the biggest US funding rounds even without those two companies. According to its list, the next-largest California rounds in 2026 were for SpaceXAI at $20 billion, Waymo at $16 billion and Prometheus at $12 billion.

Databricks, Anduril Industries and Safe Superintelligence each raised $5 billion, according to Crunchbase's list. They were followed by StepFun at $2.5 billion, Cognition and Shield AI at $2 billion each, and Atoms at $1.7 billion. Crunchbase noted that xAI raised $20 billion earlier this year while headquartered in California. It is now part of SpaceX, which is headquartered in Texas.

California's Share Has Risen for Three Years

California companies received 43.0% of US startup funding in 2017 and 46.0% during the 2021 boom. That year, US startups raised $359 billion, the highest yearly total before 2026 in Crunchbase's data. California's share then rose to 48.7% in 2023, 56.6% in 2024 and 62.8% in 2025. It reached 75.9% in 2026 so far, which Crunchbase described as an apparent record.

Crunchbase said much of this increase came from large AI startups in San Francisco that are valued at $1 billion or more. But it also sees strong activity across the wider Silicon Valley region and in Southern California.

Early-Stage Money Is Up Too

California companies raised nearly $62 billion in seed and early-stage funding rounds in 2026 so far. That was about 57% of all US funding at those stages, according to Crunchbase. Its chart shows $61.9 billion in 2026, compared with $48.6 billion in 2025 and $55.2 billion in 2021. Crunchbase said the 2026 figure appears to be a record.

Connecting the Coverage

Our report on venture funding in the third quarter said on 5 October that Crunchbase put global venture funding at $159 billion for the third quarter of 2026. A record 27 companies raised funding rounds of $1 billion or more. Two rounds on Crunchbase's California list were covered here when they happened: Nvidia's $5 billion investment in Safe Superintelligence in July and Prometheus's $12 billion funding round in June.

On the spending side, our report on Ramp's AI spending data said on 23 October that 1% of companies using Ramp account for 80% of spending on OpenAI and Anthropic.

The Structural Read

In our view, the share of funding matters more than the dollar amount alone. In Crunchbase's data, California's share of US startup funding ranged from 40.7% to 53.3% between 2017 and 2023. It then rose for three years in a row: to 56.6%, 62.8% and 75.9%.

In our view, funding is also concentrated among the next-largest companies. Crunchbase's list of the biggest California funding rounds outside OpenAI and Anthropic includes SpaceXAI, Waymo and Prometheus as the top three. Based on our calculations, their rounds total $48 billion out of $71.2 billion raised by all ten companies on the list.

In our view, early-stage funding did not stop growing while the biggest companies raised huge amounts. Crunchbase reports that California startups received $61.9 billion in seed and early-stage funding in 2026 so far, more than the $55.2 billion raised in 2021.

Three Implications

FOR FOUNDERS OUTSIDE CALIFORNIA Based on our calculations from Crunchbase's totals, startups outside California raised about $122 billion in 2026 so far. That is about 12% more than in 2025, while California's total more than doubled.

FOR INVESTORS Crunchbase reports that OpenAI and Anthropic account for more than half of California's $385 billion. This means the state's total depends heavily on a small number of very large funding rounds.

FOR THE RECORD BOOKS According to Crunchbase, US startups raised $359 billion in 2021, the highest yearly total before 2026 in its data. California startups alone have raised $385 billion in 2026 through late October.

The Business Engineer Lens

This story connects to the Business Engineer framework The AI Capex Map & The State of AI Hyperscalers.

The framework says that the growth of AI infrastructure is “underwritten by a $1T concentrated demand commitment from two counterparties”: OpenAI and Anthropic.

In our view, Crunchbase's data shows the same two companies on the funding side. Their funding rounds make up more than half of California's record $385 billion. The framework was published in May 2026 and does not discuss these figures.

What Is Not Established

Crunchbase does not give the exact amount that OpenAI and Anthropic raised within California's $385 billion total. It only says their combined amount is more than half. The figures for the rest of the US and the 12% growth rate are our calculations based on Crunchbase's US and California totals. Both totals include funding rounds only through late October, so the comparison for the full year may change. Crunchbase's footnote says xAI raised its $20 billion while it was headquartered in California, before becoming part of SpaceX, which is based in Texas.

The Bottom Line

California startups have raised $385 billion in 2026. That is more than all US startups raised in any earlier year covered by Crunchbase's data. OpenAI and Anthropic account for more than half of California's total. Based on our calculations, funding for US startups outside California grew by about 12% this year, while California's total more than doubled.