Funding Round

Elon Musk’s AI startup, xAI, is nearing a $15 billion funding round at a $230 billion pre-money valuation. This follows earlier reports of a $15 billion raise that Musk initially denied. A large portion of the funds will be used to acquire GPUs for training large language models. The deal highlights the strong investor interest in AI, mirroring substantial funding rounds and valuations for companies like OpenAI and Anthropic. xAI’s Grok chatbot and Grokipedia have also drawn attention, alongside xAI’s merger with X.

Figure AI, a humanoid robot developer valued at $3.9 billion, is facing a lawsuit from its former head of product safety. The engineer alleges wrongful termination after warning executives about the potential for their robots to cause serious harm, including fracturing a human skull. He claims his safety concerns were ignored and a safety roadmap presented to investors was altered after funding was secured, potentially constituting fraud. The lawsuit seeks economic, compensatory, and punitive damages. The humanoid robot market is projected to reach $5 trillion by 2050.

AI startup Cursor has raised $2.3 billion in a Series D funding round, valuing the company at $29.3 billion. The AI-assisted coding tool provider, founded by Anysphere in 2022, automates code generation, editing, and review, aiming to accelerate software development. Investors include Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia, and Google. Cursor claims to have surpassed $1 billion in annualized revenue since its 2023 launch. With competition from OpenAI, Anthropic, and others, the company will need continuous innovation to maintain its market position.

Kalshi, a $5 billion event-contracts marketplace, experienced user-reported glitches and delays during peak trading during college football games. Users reported issues with order processing and account balance visibility, affecting less than half the user base, according to Kalshi. A spokesperson stated the exchange “never stopped functioning properly,” and issues were being fixed. The incident occurred after a $300M Series D funding round, raising questions about scalability as Kalshi aims for institutional investors and market expansion. Its success relies on technology and risk management, highlighting challenges in a high-growth exchange environment.

Oura, a Finnish health tech company, secured over $900 million in Series E funding, valuing it at $11 billion. Led by Fidelity, the investment will accelerate innovation and global expansion in the smart ring market. Oura, known for its wellness-focused Oura Ring, has sold over 5.5 million units and generated over $500 million in revenue in 2024. The company is expanding its services with features like Health Panels and partnerships with Dexcom, aiming for comprehensive health management and personalized insights through its AI-powered Advisor.

Nscale, a UK-based AI infrastructure firm, secured $1.1 billion in Series B funding led by Aker, with participation from Nvidia, Nokia, and Dell. This investment will fuel the expansion of AI-ready data centers to meet the surging demand for compute power driven by AI model development. Nscale collaborates with OpenAI on the “Stargate” project, building data centers in the UK and Norway, aiming for significant Nvidia GPU deployments by 2027 focusing on secure and energy-efficient AI infrastructure.

Mistral AI, a European AI leader, secured €1.7 billion in Series C funding, led by ASML, valuing the company at €11.7 billion. ASML’s €1.3 billion investment grants them an 11% stake. This more than doubles Mistral’s previous valuation, highlighting strong investor interest in AI. The funding and partnership provide Mistral with resources to scale operations and enhance infrastructure, crucial given the link between AI software and hardware and ongoing chip shortages. It also emphasizes the growing importance of hardware-software collaboration in the AI industry.

Bret Taylor’s AI startup, Sierra, achieved unicorn status with a $350 million funding round, valuing it at $10 billion. Sierra joins a select group of AI companies exceeding this valuation, fueled by investor enthusiasm. Founded in 2023, Sierra focuses on AI agents for customer service, claiming to assist millions with diverse tasks. The funding, led by Greenoaks, will support platform development, infrastructure scaling, and R&D. This follows Anthropic’s recent funding and highlights the intense AI investment landscape, emphasizing ethical AI development for long-term success.

OpenAI has secured $8.3 billion in funding, pushing its valuation past $300 billion. Dragoneer Investment Group led the round with a $2.8 billion investment. OpenAI’s annual recurring revenue (ARR) has surged to $13 billion and is projected to exceed $20 billion by year-end, with paying users reaching 5 million. This funding round occurs as OpenAI seeks to transition to a for-profit entity while negotiating with Microsoft. The investment solidifies OpenAI’s position and supports its future expansion, and a potential IPO.