The more that billionaires complain about California, the more they seem to want to park their money here.

The Wall Street Journal reports that venture-capital investors have poured $366 billion into California, which is the undisputed capital of AI research and development.

“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,” the financial newspaper reported.

Open AI raised $122 billion and one of its rivals, Anthropic, assembled $95 billion for their Silicon Valley efforts.

Besides creating high-paying tech industry jobs, this mammoth funding stream is helping California in other ways.

For example, personal income tax revenues have soared, enabling Gov. Newsom and lawmakers to lessen the burden of state budget deficits and boost education funding.

What About the Billionaire’s Tax?

Meanwhile, the state’s estimated 200 billionaires are keeping a close eye on Proposition 40, which would would apply a one-time 5% wealth tax on them.

If voters approve it in November, it could raise as much as $100 billion for low-income healthcare and food assistance, according to the measure’s backers. The state Legislative Analyst’s Office estimates that Prop. 40  would generate “tens of billions of dollars.”

According to an Aug. 14 report from the UC Berkeley IGS Poll, Prop. 40 has the support of 48% of likely voters ahead of November’s election, with 41% opposed.

“These results suggest that the billionaire tax initiative is shaping up to be a closely fought contest,” said political scientist Eric Schickler, co-director of the UC Berkeley Institute of Governmental Studies.

As for California’s ability to attract massive investment despite its reputation as a regulatory nightmare, Sean Randolph of the Bay Area Council Economic Institute told WSJ, “It’s just where the action is.”