The final quarter of 2025 saw a surge in funding for the AI sector, with a total of $3 billion raised by 75 companies. Notably, over $1 billion was dedicated to AI-specific hardware, primarily benefiting data centers. A standout investment was made in a new startup focused on transforming AI compute methodologies, while established players in in-memory computing also attracted considerable financial backing.
In addition to chip manufacturers, the AI boom has spurred innovations in design processes, leading to the emergence of companies specializing in agentic AI design and debugging, as well as AI-assisted physics simulations. The quarter also marked a notable increase in significant funding rounds, with 12 mega-rounds of $100 million or more reported, compared to 11 in the previous quarter.
Investment highlights included Celero Communications, which secured $100 million in Series B funding led by Alphabet’s CapitalG, alongside earlier rounds totaling $40 million. Based in Irvine, California, Celero focuses on high-bandwidth, low-power optical connectivity solutions. Similarly, Movandi raised $40 million for its RF and mmWave chipsets, aimed at enhancing wireless communications infrastructure.