AI Captures 50% of VC Funding, Becomes More Accessible, and Promises to Extend Life
Artificial Intelligence news nº 57/2025
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News 🗞️📰
AI will cure cancer and extend life in 5 years, says OpenAI expert: In a two-hour interview on Jon Hernandez's podcast, Dr. Unutmaz, one of 10 selected by OpenAI to test its latest reasoning models, shared groundbreaking predictions about the future of AI in medicine. He believes that AI will soon make curing cancer a reality, significantly slow aging, and extend healthy lifespans, all within the next five years. However, he warns that society and governments are far from ready to handle the rapid transformations this will bring, emphasizing that unlike the decade-long adaptation to the internet, these changes will come much faster.
DeepSeek drives AI democratization, triggering market shake-up: DeepSeek’s ultra-low-cost AI model is reshaping the industry, making advanced AI accessible to new players while causing a dramatic selloff in major tech stocks. Nvidia, a cornerstone of AI infrastructure, lost $593 billion in market value, highlighting fears of reduced demand for high-cost chips and data centers. This echoes past tech disruptions where lower costs enabled startups to thrive while incumbents faced pressure. As AI development becomes more affordable, a wave of innovation from early-stage companies could redefine the competitive landscape.
Alibaba releases Qwen 2.5 AI model, claims superiority over DeepSeek. Alibaba's cloud unit unveiled Qwen 2.5-Max, stating it outperforms DeepSeek-V3, GPT-4o, and Llama-3.1-405B. The release follows DeepSeek's rapid rise, which disrupted the AI market with cost-effective models, pressuring both Chinese and global competitors. DeepSeek's AGI ambitions and lean structure contrast with Alibaba's large-scale operations, intensifying China's AI race.
VCs Bet on AI-Driven Roll-Ups in Traditional Service Industries. General Catalyst and Thrive Capital are backing AI-powered roll-ups in accounting, property management, and customer service, investing hundreds of millions to modernize low-margin businesses. Startups like Long Lake Management and Crete Professionals Alliance are acquiring firms and integrating AI tools to drive efficiency and profitability. Unlike traditional private equity, these venture-backed efforts avoid debt, relying instead on AI to transform operations. With startup funding still below 2021 highs, this shift highlights the expanding role of AI beyond high-profile tech giants into previously overlooked sectors.
AI captures over half of global VC funding in Q4 2024: Artificial intelligence dominated venture capital in 2024, with 50.8% of global VC funding in Q4 going to AI-focused companies, up from 25.4% a year prior. AI funding rose 52% year-over-year to $131.5B, contrasting with a 10% decline in other startups. The concentration highlights AI's costly infrastructure needs and its potential for industry disruption, though questions remain about which companies will sustain long-term success.
Meta to invest up to $65 billion in AI infrastructure in 2025: Meta plans to outpace competitors OpenAI and Google with a $65 billion investment in AI this year. The company will hire more AI talent, build a 2 GW data center, and aims to operate over 1.3 million GPUs by year's end. CEO Mark Zuckerberg described 2025 as a "defining year for AI," aligning with the U.S. Stargate initiative and competing against Microsoft's $80 billion and Amazon's $75 billion AI spending plans.
OpenAI unveils 'Operator' for automating everyday tasks: The new AI agent, Operator, can automate tasks like grocery shopping and filing expense reports by navigating websites and interacting with buttons and menus. Available as a research preview for ChatGPT Pro users, Operator combines GPT-4o’s vision and reasoning capabilities. While focused on privacy and user control, it highlights the growing role of AI agents in personal and business applications
Perplexity launches AI assistant for Android with multi-app capabilities: Led by CEO Aravind Srinivas, Perplexity has introduced Perplexity Assistant, an AI-powered tool that integrates reasoning, search, and app interactions to streamline daily tasks. Available in 15 languages, the assistant can book rides, find event details, create calendar entries, and use a phone’s camera for contextual queries. This marks Perplexity’s shift from an AI search engine to a natively integrated assistant.
10 key principles for building defensible Vertical AI businesses: Bessemer’s final installment of the Vertical AI Roadmap outlines a framework for founders to drive value and long-term defensibility. Key principles include automating high-value workflows, avoiding commoditization, leveraging AI for tasks impossible for humans, and ensuring solutions unlock economic value. Vertical AI companies should focus on underserved categories, integrate deeply with industry workflows, and prioritize quality over quantity in proprietary data. As AI reshapes labor-intensive industries, Vertical AI startups are positioned to capture massive market opportunities beyond traditional SaaS.
Funding 💼💸
ElevenLabs raises $250M at $3B+ valuation: The synthetic voice technology startup, founded by Mati Staniszewski and Piotr Dabkowski in 2022, has closed a Series C round led by ICONIQ Growth. Andreessen Horowitz is also among the investors. ElevenLabs offers AI-driven voice cloning, dubbing, and speech-to-text tools, used by clients like HarperCollins and gaming companies. The company’s ARR has grown from $25M in 2023 to nearly $90M, solidifying its position in the competitive AI audio market.
Quibim raises $50M to revolutionize medical imaging with AI: Spanish startup Quibim, led by CEO Ángel Alberich-Bayarri, secured $50M in Series A funding, led by Asabys and Buenavista, with participation from Amadeus Capital Partners, Apex Ventures, Partech, and Tony Fadell. Quibim develops AI models for medical imaging in oncology, neurology, and more, with flagship product QP-Prostate enhancing prostate cancer detection. The company aims to expand in the U.S., leveraging FDA clearance and partnerships with Stanford and Mass General Brigham. Quibim's long-term vision includes creating digital twins of the human body to advance precision health.l.
Manas AI raises $24.6M to transform drug discovery with AI: Backed by General Catalyst, Greylock, and Microsoft, Manas AI has secured $24.6M in seed funding to revolutionize drug discovery. Co-founded by Dr. Siddhartha Mukherjee and Reid Hoffman, the company combines AI with human expertise to accelerate the development of life-saving treatments, focusing initially on aggressive cancers like triple-negative breast cancer and lymphoma. With initiatives like Project Cosmos and the computational power of Microsoft Azure, Manas AI aims to reduce drug discovery timelines from decades to just a few years, opening new possibilities in medicine.
Sycai Medical raises €3M to advance AI-driven cancer detection: Barcelona-based Sycai Medical, led by CEO Sara Toledano, secured €3M in funding from LUMO Labs, Ship2B Ventures, Athos Capital, and Namarel Ventures. The medtech startup's AI-powered device detects early cancer and premalignant lesions in the abdomen through medical imaging, without invasive tests. The technology, active in Spain and Italy, automates patient monitoring and improves treatment response analysis for oncologic patient
Pipeshift raises $2.5M to streamline enterprise AI deployment: The startup, led by CEO Arko Chattopadhyay, offers a modular MLOps platform to train, deploy, and scale open-source GenAI models across any infrastructure. The seed round, led by Y Combinator and SenseAI Ventures, also included Arka Venture Labs and other investors. Pipeshift’s platform simplifies AI deployment, reducing costs and engineering efforts while ensuring privacy and control for enterprises.
Swarm Network raises $3M to advance decentralized AI swarms: The funding round, led by ZeroStage and Y2Z Ventures, supports Swarm Network's development of decentralized AI Agent Swarms. These agents collaborate to validate real-time data, anchored on-chain, powering Web3 applications like the Truth Protocol. The platform aims to enhance AI ecosystems by combating misinformation and promoting transparency in a scalable, trust-centric digital economy.
Camouflet raises $12M to redefine dynamic pricing with AI: Led by CEO Jeff Radwell, Los Angeles-based Camouflet secured $12M in Series A funding, led by QVM. The company’s embedded dynamic pricing platform uses AI to optimize real-time pricing across industries like e-commerce, travel, and logistics. With plans to expand into North America, Asia, and Europe, the funding will support scaling operations, enhancing customer success, and building strategic partnerships. Camouflet’s modular platform combines market analysis and predictive analytics to deliver precise pricing strategies, positioning it as a leader in the growing $11.22B dynamic pricing market.
Applied Labs raises $4.2M to improve AI-driven customer support: Led by CEO Michael Woo and co-founder Soham Waychal, Applied Labs secured $4.2M in seed funding from Abstract, Point72 Ventures, Outlander, and Tetra. The New York-based startup offers a customer service platform that combines AI efficiency with human judgment, integrating chat, email, and phone support while enabling businesses to evaluate and refine workflows. Applied Labs focuses on transparency and metrics to ensure AI-driven resolutions meet customer expectations.
Attentive.ai raises $12M to expand AI solutions for construction: Attentive.ai, co-founded by Shiva Dhawan and Rishabjit Singh, secured $12M in Series A2 funding led by Tenacity Ventures, with Vertex Ventures, Peak XV Partners, and InfoEdge Ventures participating. The company’s AI-powered takeoff platform, already used by 1,000+ companies, streamlines processes in the $3T+ construction and outdoor services industry
M&A 💰
ConnectM acquires MHz Invensys to expand AI-powered smart metering solutions: ConnectM Technology Solutions, led by CEO Bhaskar Panigrahi, has acquired MHz Invensys in an all-stock transaction to enhance its capabilities in wireless communication and Advanced Metering Infrastructure (AMI). MHz Invensys founders Kiran Kumar and Mahesh Oni will join ConnectM as employees. The acquisition strengthens ConnectM’s offerings in energy management, enabling real-time monitoring of electricity, gas, and water consumption while expanding into sectors like solar grid monitoring and IoT. ConnectM projects an additional $15M in AMI revenue over the next three years.
GrubMarket acquires Sally Produce to expand West Coast operations: GrubMarket, led by CEO Mike Xu, has acquired Sally Produce, a leading Asian produce wholesaler based in Gilroy, California. Founded by Sally Huang in 2001, Sally Produce specializes in fresh Asian greens, pomelos, and melons, sourced directly from local farms and serving major grocers like 99 Ranch Market and restaurants across the West Coast. The acquisition allows Sally Produce to leverage GrubMarket’s AI-powered tools, including WholesaleWare and GrubAssist, to enhance operations, logistics, and customer reach while maintaining its leadership team and strong supplier relationships.
Sword Health acquires Surgery Hero to expand AI-driven healthcare in the UK: Led by CEO Virgilio Bento, Sword Health has acquired Surgery Hero, a UK-based prehabilitation digital health provider, to enhance its AI Care platform. The collaboration with 18 NHS trusts will provide care to 10 million people, addressing long musculoskeletal care waitlists and reducing costs. Surgery Hero’s team and solutions will integrate into Sword Health, offering comprehensive support from pre-surgery to recovery.
Preferabli acquires Libation Labs to redefine personalized wine and hospitality experiences: Led by CEO Pam Dillon, Preferabli has acquired Napa-based Libation Labs, creators of the Cuvée app, to expand its AI-driven personalization capabilities in wine, spirits, and food. This acquisition enhances Preferabli's offerings by integrating exclusive Napa Valley experiences, from wine tastings to luxury travel, into its platform. Founders Andrew Allison and Daniele Delgrosso will join Preferabli's leadership team. Combining Preferabli’s Sensorial AI℠ with Cuvée’s concierge services, the company aims to deliver personalized journeys and foster consumer loyalty across the global hospitality and travel sectors.
Interesting Reads 💡🤔
The Five Stages of AI Agent Evolution: The evolution of AI agents is transforming how startups operate, moving from generalist chat models to fully autonomous AI-first organizations. Current advancements (Level 3) focus on agents capable of executing tasks, shifting from co-pilot models to action-oriented systems. Future stages (Levels 4 and 5) include AI innovators generating creative solutions and organizations dominated by AI decision-making. This shift will redefine industries, creating new opportunities and challenges as AI becomes integral to workforce and business strategy.
AI reshapes advertising, but startups can still compete: Tech giants like Google, Meta, and Amazon dominate AI-driven advertising with hyper-personalization, real-time optimization, and programmatic ad tech. Their tools, such as Google’s Smart Bidding and Meta’s ad-generation feature, streamline campaigns and boost effectiveness. However, startups can thrive by targeting niche markets, offering personalized solutions, and maintaining agility in a fast-changing landscape. Companies like Socure and Adwerx demonstrate how innovative approaches in AI-powered advertising, fraud detection, and privacy-focused targeting allow smaller players to carve out space and compete effectively against industry giants.
5 Generative AI use cases transforming data analytics: Generative AI is revolutionizing data analytics by automating processes and enhancing outcomes. It simplifies data exploration with conversational AI tools like GenBI, automates data visualization with platforms like Power BI, and improves predictive analytics by generating synthetic data for robust models. It also addresses data gaps through augmentation and streamlines data processing by automating cleaning, integration, and transformation tasks. These advancements empower businesses to handle complex datasets efficiently, improve model accuracy, and unlock deeper insights, reshaping the future of decision-making and analytics.
Master prompt engineering for better AI interactions: Crafting effective prompts is essential for harnessing AI's full potential. Key strategies include specifying outcomes, using clear language, providing context, and defining response formats. Tools like Sam The Prompt Creator streamline the process with features for building, refining, and enhancing prompts. Whether for creative writing or automating tasks, mastering prompt engineering improves AI outputs, making interactions more accurate and relevant. As AI becomes integral to various applications, this skill will be invaluable for maximizing its capabilities.
Reid Hoffman: Generative AI is the 'steam engine of the mind' Venture capitalist and LinkedIn co-founder Reid Hoffman compares generative AI to the Industrial Revolution, arguing that it will transform industries by enhancing language-based tasks such as communication, analysis, and decision-making. In a McKinsey podcast, Hoffman highlights AI’s potential to integrate both IQ and EQ, revolutionizing not just individual productivity but also teamwork. He encourages leaders to experiment with AI, decide where to lead or follow, and manage workforce transitions with compassion, emphasizing AI’s long-term impact on both business and society.
Automate Excel Data Entry with AI: A Step-by-Step Guide. Businesses can now automate data entry using Claude 3.5 Sonnet and Vector Shift, a no-code workflow automation platform. This integration enables organizations to extract data from documents, minimize errors, and improve efficiency. By setting up workflows in Vector Shift, businesses can seamlessly input extracted data into Google Sheets. A practical application includes processing contracts to extract key details like billing start dates and liabilities. AI-driven automation reduces manual effort, enhances accuracy, and allows teams to focus on higher-value tasks, revolutionizing data management processes.
Startups / Tools 🧰🛠️
co.dev: Platform that transforms app ideas into deployable web apps quickly using Next.js and Claude AI, offering automation and tools for developers and creators.
Llamao: Offline AI assistant powered by open-source LLMs, providing privacy-focused support for writing, brainstorming, and productivity without internet.
Apollo AI: Tool to run local AI models on iOS, supporting private, customizable interactions with language models and OpenRouter integration.
ARTLAS: AI-powered art companion that offers personalized museum guides, art recommendations, and instant artwork recognition.
Bulletpen: AI app that converts spoken thoughts into structured, polished writing, with tone customization and editing tools.
Sense: AI work hub that integrates apps, organizes resources, and highlights important updates across your tools for better team collaboration.
Omakase.ai: AI platform for creating personalized shopping assistants for e-commerce websites to enhance customer service and boost sales.
NTV Highlights 🪩🎉
We are actively looking for AI startups
At Next Tier Ventures, we are actively looking for the next generation of AI startup founders ready to scale and create meaningful impact. Our investments range between $500K and $2M, accompanied by strategic support to help founders achieve their vision.
If you’re building cutting-edge B2B AI solutions let’s connect 👉
http://apply.nexttier.vc
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