Top AI Fundings This Week

The tech industry this week saw remarkable funding activity, highlighting the rapid evolution of AI and its transformative potential across sectors. Databricks led the charge, raising an unprecedented $10 billion and boosting its valuation to $62 billion, underscoring its influence in AI and data analytics. Meanwhile, other companies also attracted significant investments, including SandboxAQ with its advancements in enterprise AI and Precision Neuroscience with its progress in brain-computer interfaces, showcasing the diverse and expanding impact of AI-driven innovation.

Databricks – $10 Billion

Databricks has raised $10 billion in its latest funding round, propelling its valuation to $62 billion and solidifying its position as a leader in the AI and data analytics space. The company’s flagship platform, Databricks Data Intelligence, continues to gain traction, with its SQL intelligent data warehouse generating a $600 million annual revenue run rate and over 500 customers spending more than $1 million annually. The new funding will support the development of AI-driven products, acquisitions, and global expansion, including an expanded partnership with Twelve Labs to enhance video intelligence capabilities. “These are still the early days of AI,” said CEO Ali Ghodsi, highlighting the company’s ambition to drive transformative data intelligence for its clients.

SandboxAQ –  $300 Million 

SandboxAQ, a company spun out of Alphabet in 2022, is revolutionizing enterprise AI by focusing on Large Quantitative Models (LQMs) rather than the more commonly known Large Language Models (LLMs). With a $300 million funding round led by Fred Alger Management, T. Rowe Price, and Breyer Capital, the company has achieved a $5.6 billion valuation. Co-founded by Jack Hidary, SandboxAQ is applying AI to solve complex computational challenges across industries like drug discovery, materials science, healthcare diagnostics, and GPS-free navigation. “The majority of the economy is actually not based on language; it’s based on quantitative relationships,” said Hidary. By utilizing numerical data and quantum-inspired algorithms, SandboxAQ is driving advancements such as improved battery technology, faster drug development, and even GPS-free navigation systems adopted by the U.S. Air Force. 

Precision Neuroscience – $102 Million

Precision Neuroscience, founded by neurosurgeon and engineer Ben Rapoport, has raised $102 million in a Series C round, bringing its total funding to $155 million. This positions the company as a significant player in the brain-computer interface (BCI) space, competing with Neuralink. Unlike Neuralink’s focus on human-AI augmentation, Precision’s goal is to develop practical solutions for patients with neurological disorders through its minimally invasive Layer 7 Cortical Interface. CEO Michael Mager explained, “We are a physician-led company, and our objective is to make a meaningful, positive difference in people’s lives.” With advancements in AI and a growing market for BCI devices, Precision is making strides in transforming patient care despite challenges like cost and limited surgical expertise.

Anysphere – $100 Million

Anysphere, the developer of the AI-powered coding assistant Cursor, has raised $100 million in a Series B round, bringing its valuation to $2.6 billion. This funding follows a rapid growth trajectory for the company, which raised a $60 million Series A just four months earlier at a $400 million valuation. The round was led by Thrive Capital, with participation from a16z and other investors. Anysphere’s revenue grew from $4 million in annual recurring revenue (ARR) in April to $48 million in October, a leap that significantly outpaced its valuation. Co-founder Michael Truell emphasized, “We’re growing so fast that our existing investors couldn’t pass up the chance to double down on this opportunity.” Despite stiff competition from other AI-powered coding tools, Cursor has gained traction with companies like OpenAI and Shopify, offering a freemium model to developers.

Decart – $32 Million

Decart, a startup that emerged from stealth less than two months ago, has already raised $32 million in Series A funding led by Benchmark, bringing its valuation to over $500 million. The company, founded by Dean Leitersdorf and Moshe Shalev, focuses on three main areas: infrastructure optimization, AI algorithms, and data applications. Its first product, which optimizes GPU usage in AI workloads, is already generating millions in revenue by dramatically lowering operational costs. “That definitely got people’s attention,” said Leitersdorf. In addition to the enterprise product, Decart launched Oasis, a playable AI model that generates real-time interactions, and plans to expand into generative AR and VR experiences.

Backflip – $30 Million

Backflip, a startup co-founded by 3D printing veterans Greg Mark and David Benhaim, has raised $30 million to make 3D design as easy as typing a prompt. The company aims to simplify the traditionally complex and time-consuming process of creating physical objects using computer-aided design (CAD) software by developing foundational models trained on a dataset of 10 million 3D parts. “Now anyone can do it. You can literally text prompts, or draw a sketch, or pull in an image, or snap a photo with your iPhone — and then print it out,” said Mark. With the funding, Backflip plans to launch an app that will make 3D design accessible to anyone, from manufacturers to everyday users, while ensuring safety with content checkers to filter out harmful designs. The Series A round was co-led by Andreessen Horowitz and NEA, with backing from angel investors including Microsoft CTO Kevin Scott and Android co-founder Rich Miner.

Anatomy Financial – $19 Million 

Anatomy Financial has raised $19 million in Series A funding, led by Canapi Ventures and Lightspeed Venture Partners, to enhance its AI-powered financial automation solutions for healthcare providers. The company’s platform addresses the inefficiencies of paper-based processes in healthcare by automating the handling of insurance payments, explanations of benefits (EOBs), and reconciliation tasks. With 27% of insurance payments still issued as paper checks, Anatomy Financial’s AI-driven lockbox digitizes these documents, streamlining workflows and providing real-time financial insights. The funding will allow the company to expand its technology and reach, helping healthcare providers save time and reduce errors in their financial operations.

Jome – $9.8 Million

Jome, a real estate technology startup, has raised $9.8 million in Series A funding, led by Geek Ventures and supported by U.Ventures, Toloka VC, and Forefront VP. This brings the total funding to $16.5 million. Co-founded by Dan Hnatkovskyy and Roman Hnatkovskyy, Jome is on a mission to simplify the home-buying process and tackle the U.S. housing crisis, which faces a shortage of 4 to 7 million homes. By leveraging an AI-powered platform, Jome aggregates data from builders’ spreadsheets to offer real-time access to new construction inventory, pricing, and incentives. The platform has already served over 100,000 buyers and helped generate more than $250 million in sales. “We created Jome to remove bottlenecks in the new home buying process, creating a joyful experience for buyers,” said Dan Hnatkovskyy. With the new funding, Jome plans to expand its platform across more U.S. cities and enhance its services, focusing on bridging the gap between buyers and builders and making homeownership more accessible.

T-robotics – $5.4 Million

T-robotics, which develops no-code programming for robots using natural language and AI skill models, has raised a $5.4 million Seed round, co-led by Emergent Ventures and Engine Ventures, with participation from Berkeley Skydeck and Raisewell. The company plans to use the funds to expand operations in the U.S. and E.U. T-robotics was also named one of two winners in the ABB AI Startup Challenge, where it impressed with its ability to program robots through conversational AI. “Billions of dollars are spent developing humanoid robots, but the real workhorses—the 4.3 million robotic arms already in use and the half million produced annually—are still underutilized and haven’t benefited from the latest AI advancements,” said Asad Tirmizi, Co-Founder and CEO of T-robotics. “By providing pre-trained AI skills that allow them to better understand the task they have to perform, we will create more intelligent, productive robotic partners.”

Hamming AI – $3.8 Million

Hamming AI has raised $3.8 million in seed funding, led by Mischief and backed by investors such as Y Combinator, AI Grant, and Coalition Operators. The funding will help the startup address persistent reliability issues in conversational AI by automating the testing, monitoring, and governance of voice AI agents. With industries like healthcare, law, and insurance demanding higher accuracy and compliance, Hamming AI’s platform offers a solution by simulating thousands of real-world interactions at scale. This approach helps businesses detect vulnerabilities, improve performance, and reduce manual testing, ensuring that AI-driven systems meet strict regulatory standards while cutting down on costs and risks.