AI Dominates Investment as Infrastructure and Agentic AI Redefine the Market
Artificial Intelligence news nº 54/2025
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News 🗞️📰
AI boom highlights fundraising struggles for non-AI startups: While AI companies like ElevenLabs and Cohere dominate with sky-high valuations, non-AI startups face a drastically different landscape. Tribeca Venture Partners, led by Brian Hirsch, targets late-stage companies forced into flat or down rounds, as only 9% of Series A startups secure Series B funding within two years, compared to 25% previously. This reflects a market still recalibrating after the ZIRP-era frenzy.
Microsoft to spend $80 billion in FY’25 on data centers for AI: Microsoft plans to allocate $80 billion in fiscal 2025 to build AI-enabled data centers for training AI models and deploying cloud-based applications. Over half of this investment will be made in the U.S., reinforcing Microsoft's commitment to AI innovation and global leadership. The expansion includes ambitious projects like the Stargate AI supercomputer facility, highlighting the growing demand for infrastructure to support AI workloads.
Meta Opens Floodgates for AI-Generated Accounts on Facebook, Instagram: Meta is integrating AI-generated accounts into Instagram and Facebook, allowing users to create digital personas and influencers through tools like AI Studio. This innovation opens new opportunities for engagement, branding, and dynamic user interactions, redefining how social media platforms operate and connect with audiences.
AI’s next leap requires intimate access to your digital life: Tech companies like Google, Microsoft, and OpenAI are developing advanced "AI agents" capable of performing tasks such as online shopping, scheduling, and email management. These agents promise to transform productivity but require deep access to user data, raising concerns over privacy, security, and misuse. Developers are racing to address risks, but widespread adoption will depend on balancing innovation with robust safeguards.
The End of Pre-Training Era Begins: OpenAI co-founder Ilya Sutskever declared at NeurIPS 2024 that pre-training as we know it has reached its limits due to finite data, signaling a shift in AI's evolution. The focus now moves to synthetic data, reasoning models, and agentic AI capable of autonomous decision-making. Industry leaders see 2025 as a pivotal year for new architectures and applications, prioritizing innovation over scaling existing systems.
GPUs Are So 2024 — This Is 2025's Hottest Trend for the $15.7 Trillion AI Revolution: While GPUs dominated the AI landscape in 2024, 2025 marks the rise of agentic AI. These autonomous AI assistants are transforming industries, from customer service to autonomous vehicles. Salesforce's Agentforce, resolving 83% of customer inquiries without human intervention, and SoundHound AI’s voice recognition systems in automobiles highlight this shift. However, history suggests early-stage technologies often face challenges in adoption and ROI, signaling a cautious approach for investors.
Funding 💼💸
Jentic secures €4M to revolutionize AI agent integration: Led by CEO Sean Blanchfield, Irish startup Jentic is building a middleware layer to streamline communication between AI agents and other systems. Founded in 2024, the company will use the funding, led by Elkstone with participation from Sure Valley Ventures and others, to expand its team and accelerate product development.
Scripta Insights Raises $17 Million for Pharmacy Navigation Platform: Scripta Insights, led by CEO Eric Levin, secured $17 million in a Series B round to scale its pharmacy navigation platform. The company, which helps optimize prescription savings and transparency, reported a 100% revenue increase in 2024 and $29 million in prescription savings. The funding will support expansion into the self-insured, health plan, and Medicare Advantage markets.
RoboForce raises $10M to build hyper-accurate robot workforce: Led by CEO Leo Ma, RoboForce develops robotic workers designed for repetitive, high-risk tasks, starting with solar panel installation. With backing from investors like Nobel Laureate Myron Scholes and Carnegie Mellon University, the funding will support pilot projects in the solar industry. RoboForce's robots boast millimeter-level accuracy, positioning them as leaders in precision-driven automation.
Cimulate raises $28M in Series A to transform AI-driven commerce: Cimulate, co-founded by CEO John Andrews and MIT professor Vivek Farias, secured $28M in Series A funding led by Spark Capital. The company’s AI-powered Commerce Experience Server leverages CustomerGPT to deliver scalable personalization and context-aware shopping experiences, improving engagement and conversions. The funding will accelerate growth in addressing search abandonment challenges in the $2B commerce search market.
Vapi secures $20M in Series A to expand AI voice agents platform: Vapi, co-founded by CEO Jordan Dearsley and CTO Nikhil Gupta, raised $20M in Series A funding led by Bessemer Venture Partners. The company develops APIs for scalable AI voice agents tailored for industries like customer service and healthcare. The funding will accelerate engineering hires and real-time infrastructure scaling.
Apheris raises $8.25M to tackle AI data challenges in life sciences: Led by CEO Robin Röhm, German startup Apheris uses federated computing to securely train AI models without moving sensitive data. Backed by Roche and others, the funding will support its work in AI-driven drug discovery and enable life sciences companies to collaborate while preserving privacy and regulatory compliance.
M&A 💰
HubSpot acquires Frame AI to enhance customer intelligence: HubSpot has completed its acquisition of Frame AI, an AI-powered conversation intelligence platform. The integration will strengthen HubSpot’s Breeze AI by unifying structured and unstructured customer data, enabling teams to turn conversations into actionable insights.
Trane Technologies acquires BrainBox AI to advance sustainable building solutions: Trane Technologies has completed its acquisition of BrainBox AI, a pioneer in autonomous HVAC controls and generative AI for buildings. The integration combines BrainBox AI's predictive algorithms with Trane's digital capabilities to reduce energy use by up to 25% and greenhouse gas emissions by up to 40%.
Marketbridge acquires April Six to enhance global B2B and B2C marketing solutions: Marketbridge, led by CEO John Shomaker, acquires April Six, founded by Fiona Shepherd, to integrate business consulting with marketing execution. This acquisition strengthens Marketbridge’s global reach and capabilities in providing data-driven, end-to-end marketing strategies across technology, healthcare, and financial sectors.
Interesting Reads 💡🤔
10 Lucrative AI Side Hustles for Entrepreneurs: Entrepreneurs can leverage AI tools to create profitable side hustles with minimal investment. Opportunities include AI-powered social media management, online course creation, AI content writing, faceless YouTube channels, and AI-enhanced web design. Additional options like virtual assistant services and selling AI-generated art or prompts highlight the vast potential for using AI to generate income in creative and scalable ways.
Top 10 Women Leading the AI Revolution: Highlighting the most influential women shaping the future of artificial intelligence. In a traditionally male-dominated field, women are making groundbreaking contributions to AI. From Dr. Fei-Fei Li’s human-centered innovations to Dr. Timnit Gebru’s pioneering work in AI ethics, these leaders are driving progress.
How GenAI investment is surging on the back of continued innovation: Venture capital investment in generative AI surpassed $43 billion by November 2024, marking a significant increase from $24.7 billion in 2023. The United States leads with 70% of deals and 85% of total value. The market continues to offer opportunities for startups with specialized, high-impact solutions in sectors like biotech, digital commerce, and e-commerce, fueled by technological advancements and disruptive applications. Projections for December indicate that 2024 will close as a record-breaking year for GenAI funding.
The Evolution of Artificial Intelligence: AI has transformed from early concepts in the mid-20th century to a pivotal technology reshaping industries like healthcare, finance, and transportation. Breakthroughs in deep learning and neural networks drive advancements, but ethical concerns like bias and job displacement demand responsible development. Future innovations in robotics, quantum computing, and reinforcement learning promise even greater societal impact.
How AI is being drafted for a digital cold war: AI is increasingly being nationalized to serve geopolitical goals, with democracies like the U.S. emphasizing the need to maintain leadership against authoritarian rivals. Tech giants such as Meta, OpenAI, and Microsoft are now collaborating with defense agencies, while policymakers advocate for investments in AI to secure national security objectives. This trend raises critical questions about whether AI will advance global cooperation or deepen divisions on the world stage.
Using generative AI to improve software testing: MIT spinout DataCebo helps companies enhance software testing with synthetic data created by its Synthetic Data Vault (SDV). This generative AI system enables the creation of realistic data for testing applications, training machine learning models, and simulating complex scenarios. SDV is already widely adopted, with over 1 million downloads, offering industries a privacy-friendly and efficient way to generate edge cases and improve application reliability.
The Golden Opportunity for American AI: Microsoft’s Brad Smith emphasizes the potential for the U.S. to lead a global AI revolution over the next four years. Key pillars include advancing AI technology and infrastructure, skilling the workforce to maximize AI adoption, and exporting American AI to allies. With substantial private-sector investment, including Microsoft’s $80 billion for AI-enabled datacenters in FY 2025, the U.S. aims to solidify its global position and counter China’s growing influence in AI markets.
Startups / Tools 🧰🛠️
Motion: An AI-driven productivity tool that intelligently schedules your tasks and meetings, adapting in real-time to changes in your calendar to optimize your workflow.
Timely: An AI-powered time tracking app that automatically records how you spend your time across different work tools, providing insights to improve efficiency.
Krisp: An AI-based noise-canceling app that removes background noise from your calls in real-time, ensuring clear communication during virtual meetings.
Clockwise: An AI tool that optimizes your calendar by intelligently scheduling meetings and focus time, helping you achieve a more balanced and productive workday.
Frase: An AI content optimization tool that assists in researching, writing, and optimizing content for SEO, streamlining the content creation process.
Ferret: An AI tool that provides detailed insights about companies and individuals, helping you make informed decisions during networking, hiring, or business deals.
Decktopus: An AI-powered presentation tool that helps you create professional slides quickly by generating content and design suggestions tailored to your topic.
Recast: An AI tool that transforms written content into engaging videos, enabling you to repurpose your articles or blog posts into dynamic visual formats.
Andi: An AI-powered search assistant that provides summarized answers and visual results, enhancing your research and reducing time spent on browsing.
Superpowered: An AI-powered productivity app that keeps you focused and on track by providing real-time reminders and tools for task management.
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
Next Tier Ventures Heads to Punta Tech Uruguay in January 2025
We're excited to announce that Next Tier Ventures will be attending Punta Tech Meetup this coming January in Punta del Este, Uruguay. As one of the most anticipated networking events in Latin America, Punta Tech brings together tech leaders, entrepreneurs, and investors to foster connections and strengthen the region's tech ecosystem.
We look forward to engaging with like-minded innovators and exploring new opportunities to collaborate and grow. See you at the Museum of Contemporary Art Atchugarry (MACA) on January 13th!
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