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AI Boom: 55 US Startups Hit $100M+ Funding in 2025

The U.S. artificial intelligence sector continued its robust growth in 2025, with 55 startups securing funding rounds of $100 million or more, according to TechCrunch data. This figure represents a notable increase from the 49 companies that achieved similar funding milestones in 2024, signaling sustained investor confidence in the AI landscape.

While the number of billion-dollar rounds decreased slightly compared to the previous year, with Anthropic being the only company to secure multiple rounds exceeding that threshold (two), the overall trend pointed towards broader participation in large-scale funding. Eight companies managed to raise multiple rounds, surpassing the three that did so in 2024. This suggests a maturing market where investors are willing to double down on promising ventures.

The influx of capital is fueling rapid innovation and expansion across various AI applications. Companies are leveraging these funds to enhance their research and development efforts, scale their operations, and deploy AI-powered solutions in diverse sectors, including healthcare, finance, and manufacturing. The continued investment underscores the transformative potential of AI and its increasing integration into the broader economy.

The AI industry's momentum appears poised to continue into 2026. Early indicators include Elon Musk's xAI announcing a massive $20 billion Series E round and Sam Altman's brain-computer interface startup, Merge Labs, securing a $250 million seed round led by OpenAI. These significant investments in the opening weeks of the year suggest that investor appetite for AI remains strong.

One notable example of a company securing significant funding in 2025 was Austin, Texas-based Mythic. The company, which specializes in developing power-efficient compute solutions for AI applications, closed a $125 million venture round on December 17. The round was led by DCVC and included participation from prominent investors such as SoftBank, NEA, and Linse Capital. Mythic's technology addresses a critical challenge in the AI space: the energy consumption associated with running complex AI models. By developing more efficient hardware, Mythic aims to enable broader deployment of AI in edge computing environments and reduce the environmental impact of AI applications.

As the AI landscape continues to evolve, the focus will likely shift towards demonstrating tangible business outcomes and addressing ethical considerations. The ability of AI startups to deliver measurable value and build trust with stakeholders will be crucial for sustaining long-term growth and attracting further investment. While the early signs for 2026 are positive, the industry will need to navigate potential challenges, such as regulatory scrutiny and talent shortages, to maintain its current trajectory. TechCrunch will continue to monitor these developments closely.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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