AI startups raise $3.3B this week with Crusoe leading at $1.4B

Artificial intelligence dominated this week’s largest startup funding rounds, with companies raising $1.4 billion for AI data centers and hundreds of millions more for autonomous vehicles, medical AI tools, and conversational AI platforms. The funding surge reflects continued investor confidence in AI infrastructure and applications, even as the broader venture capital market remains selective.

This week’s ten largest funding rounds totaled over $3.3 billion, with seven of the ten deals going to companies building AI-powered solutions. The standout was Crusoe Energy Systems, which secured $1.4 billion to expand its specialized data centers designed for AI workloads. Meanwhile, sectors from battery recycling to fire suppression also attracted significant investment, showing that innovation capital continues flowing to diverse problem-solving technologies.

1. Crusoe Energy Systems raises $1.4 billion for AI data centers

Denver-based Crusoe Energy Systems secured the week’s largest funding round with $1.4 billion in financing led by Valor Equity Partners and Mubadala Capital, an investment arm of Abu Dhabi’s sovereign wealth fund. The deal values the company at $10 billion, reflecting massive investor appetite for AI infrastructure.

Crusoe specializes in building data centers optimized specifically for artificial intelligence workloads, which require significantly more computing power and energy than traditional data centers. The company focuses on using stranded or wasted energy sources, such as flared natural gas from oil fields, to power their facilities. This approach addresses two critical challenges: the enormous energy demands of AI computing and the environmental impact of wasted energy resources.

2. Avride secures $375 million for autonomous vehicles and delivery robots

Austin-based Avride announced commitments of up to $375 million backed by ride-sharing giant Uber and Nebius Group, a technology company spun out of Russian search engine Yandex. The eight-year-old company develops the software and hardware systems that enable vehicles to drive themselves and robots to make autonomous deliveries.

The funding comes with a significant commercial partnership: Avride plans to launch its first robotaxi service on Uber’s platform in Dallas later this year. This represents Uber’s strategy to integrate autonomous vehicle technology into its existing ride-hailing network, potentially reducing long-term driver costs while expanding service availability.

3. Redwood Materials closes $350 million for battery recycling expansion

Carson City, Nevada-based Redwood Materials completed a $350 million Series E funding round led by Eclipse Ventures, with participation from Nvidia’s investment arm NVentures. Founded in 2017 by former Tesla executive JB Straubel, the company has now raised over $2 billion in total equity funding.

Redwood Materials addresses a critical challenge in the electric vehicle revolution: what happens to batteries when they reach the end of their useful life. The company breaks down used batteries to recover valuable materials like lithium, cobalt, and nickel, which can then be used to manufacture new batteries. This recycling process reduces dependence on mining new materials and helps create a more sustainable battery supply chain as electric vehicle adoption accelerates.

4. Uniphore raises $260 million for agentic AI platform

Palo Alto-based Uniphore secured $260 million in Series F funding from investors including chip makers Nvidia and AMD, along with data companies Snowflake Ventures and Databricks Ventures. The round values the company at $2.5 billion.

Uniphore develops what’s known as “agentic AI” – artificial intelligence systems that can take independent actions and make decisions rather than simply responding to prompts. These AI agents can handle complex business processes like customer service interactions, sales conversations, and data analysis tasks with minimal human oversight. The technology represents an evolution from chatbots that answer questions to AI systems that can complete entire workflows autonomously.

5. Sesame lands $250 million for voice AI and smart glasses

San Francisco-based Sesame raised $250 million in Series B funding led by Sequoia Capital, one of Silicon Valley’s most prominent venture capital firms. The company is headed by Brendan Iribe, former CEO and co-founder of Oculus, the virtual reality company that Facebook acquired for $2 billion in 2014.

Sesame combines conversational AI technology with smart glasses hardware, creating wearable devices that users can interact with through voice commands. The technology aims to make computing more natural and accessible by eliminating the need to look at screens or use keyboards for basic digital interactions.

6. OpenEvidence attracts $200 million for medical AI tools

OpenEvidence reportedly raised $200 million in a funding round led by GV, Google’s venture capital arm, at a $6 billion valuation. The dramatic increase from its $3.5 billion valuation just three months earlier, when it raised $210 million, reflects intense investor interest in AI applications for healthcare.

Often called the “ChatGPT for doctors,” OpenEvidence develops AI tools that help medical professionals quickly access and analyze medical research, patient data, and treatment guidelines. The platform can synthesize information from thousands of medical studies to help doctors make more informed treatment decisions, potentially improving patient outcomes while reducing the time physicians spend researching complex cases.

7. Electra Therapeutics secures $183 million for immunology and cancer treatments

South San Francisco-based Electra Therapeutics raised $183 million in Series C funding led by Nextech Invest and EQT Life Sciences. The biotech company focuses on developing therapies that target previously unexplored biological mechanisms in immunology and cancer treatment.

Biotechnology companies like Electra typically require substantial funding over many years to develop new drugs, conduct clinical trials, and navigate regulatory approval processes. The large funding round reflects investor confidence in the company’s scientific approach and the potential market opportunity for new cancer and immune system treatments.

8. LangChain raises $125 million for AI agent development platform

San Francisco-based LangChain secured $125 million in funding at a $1.25 billion valuation, with IVP leading the financing for the three-year-old company. LangChain provides software tools and frameworks that help developers build AI agents – autonomous systems that can perform tasks and make decisions without constant human guidance.

The platform has become popular among software engineers working on AI applications because it simplifies the complex process of connecting large language models like ChatGPT to external data sources and business systems. This enables companies to create custom AI agents tailored to their specific workflows and requirements.

9. ShopMy achieves $70 million funding for influencer marketing platform

New York-based ShopMy raised $70 million in funding led by Avenir, reaching a $1.5 billion valuation for the five-year-old company. The platform connects consumer brands with social media influencers, helping companies identify and partner with content creators who can effectively promote their products to target audiences.

The influencer marketing industry has grown rapidly as brands shift advertising budgets from traditional media to social media platforms. ShopMy’s technology helps streamline these partnerships by providing data analytics and management tools for both brands and influencers.

10. Seneca launches with $60 million for autonomous fire suppression

San Francisco-based Seneca emerged from stealth mode with $60 million in initial funding led by Caffeinated Capital and Convective Capital. The startup develops autonomous drone systems designed to detect and suppress wildfires before they spread out of control.

Seneca’s approach combines artificial intelligence, robotics, and fire suppression technology to create systems that can operate in dangerous conditions where human firefighters might be at risk. The technology could prove particularly valuable in regions prone to wildfires, where early detection and rapid response can prevent small fires from becoming major disasters.

This week’s funding activity highlights several important trends in the startup ecosystem. AI infrastructure companies like Crusoe Energy Systems are attracting massive investments as the industry recognizes that current computing infrastructure may be inadequate for the growing demands of artificial intelligence applications.

The prominence of AI-focused companies across multiple sectors – from healthcare and transportation to customer service and content creation – demonstrates how artificial intelligence is becoming a foundational technology rather than a niche application. Companies are raising larger rounds at higher valuations, suggesting that investors believe AI will create substantial value across many industries.

However, the diversity of sectors represented, including battery recycling, biotech, and fire suppression, shows that venture capital continues flowing to companies solving practical problems beyond the AI hype cycle. These investments reflect ongoing opportunities in sustainability, healthcare innovation, and public safety technology.