AI startups raised over $2.5 billion this week across infrastructure, agentic AI, healthcare, and fintech. From Lambda’s massive $1.5 billion infrastructure expansion to Function Health’s $298 million longevity bet, capital continued flowing to companies building both the foundational layers and specialized applications of the AI economy. Two new unicorns emerged, and Ramp’s fourth funding round of 2025 pushed it to a $32 billion valuation.
Lambda Raises $1.5 Billion Series E at Multi-Billion Dollar Valuation
Fund Raised: $1.5 billion
Stage: Series E
Total Funding: $3+ billion
Investors: TWG Global (lead), US Innovative Technology Fund (USIT), Nvidia
San Francisco-based Lambda announced it raised $1.5 billion in a Series E round led by TWG Global, a relatively new $40 billion investment firm formed by billionaires Thomas Tull (former owner of Legendary Entertainment) and Mark Walter (Guggenheim Partners founder and CEO). The round far exceeded market whispers that Lambda was targeting “hundreds of millions” at a valuation above $4 billion.
TWG Global manages a diverse portfolio including Walter’s stakes in the Los Angeles Lakers and the new Cadillac F1 racing team. The firm also operates a $15 billion AI-focused fund anchored by Abu Dhabi’s Mubadala Capital. TWG previously invested in partnerships with Elon Musk’s xAI and Palantir to sell AI agents to enterprises.
Founded in 2012 by Stephen Balaban, Lambda operates multiple AI data centers across the United States. The company is a CoreWeave competitor, though it also sells “AI factories” to hyperscaler clouds. Earlier this month, Lambda announced a multibillion-dollar deal to supply Microsoft with AI infrastructure using tens of thousands of Nvidia GPUs, including the advanced GB300 NVL72 systems.
Platform capabilities:
- AI environments called Superclusters provisioned with up to 165,000 graphics cards
- Customer control over firewalls regulating Supercluster access and encryption keys
- Individual instances available with up to eight GPUs for smaller workloads
- Vertically integrated operations from power sourcing to GPU deployment
The Microsoft deal positions Lambda as a critical infrastructure partner for one of the world’s largest cloud providers. Microsoft already signed a similar multi-billion dollar agreement with CoreWeave in 2024 and became its largest client. OpenAI separately reached a $12 billion partnership with CoreWeave in March 2025.
Lambda completed a $480 million Series D round in February 2025 at approximately a $2.5 billion valuation. This new raise significantly exceeds those earlier expectations, though Lambda declined to comment on its current valuation. Market analysts had discussed a potential IPO, though no official plans have been announced.
The funding will support GPU purchases, expand Lambda Cloud services, and accelerate development of data center capacity. NVIDIA’s continued investment validates Lambda’s technical approach and ensures priority access to cutting-edge chips in a supply-constrained market.
Lambda’s massive raise addresses the AI industry’s emerging bottleneck—not chip supply, but energy availability. As traditional cloud providers hit power constraints and cities struggle to handle the electrical load AI models demand, Lambda’s infrastructure strategy positions it for the next wave of AI scaling.
Ramp Reaches $32 Billion Valuation with $300 Million Series E-4
Fund Raised: $300 million
Valuation: $32 billion
Total Funding: $2.3 billion
Investors: Lightspeed Venture Partners (lead), Founders Fund, D1 Capital, Coatue, GIC, Thrive Capital, Sutter Hill Ventures, Khosla Ventures, ICONIQ, Alpha Wave Global, Bessemer Venture Partners, Robinhood Ventures
New York-based Ramp announced Monday it raised $300 million led by Lightspeed Venture Partners, achieving a $32 billion valuation—a stunning 42% jump from the $22.5 billion valuation it reached just three months ago in July. This marks Ramp’s fourth funding round in 2025 alone, an extraordinary financing pace that reflects the company’s explosive growth trajectory.
The financing includes both a $300 million primary round and an employee tender offer. Roughly half of the equity raised will cover employee liquidity, with the tender portion handling additional employee needs. The round saw participation from nearly 90 institutional investors, including six new backers: Alpha Wave Global, Bessemer Venture Partners, Robinhood Ventures, 1789 Capital, Epicenter Capital, and Coral Capital.
2025 funding timeline:
- March: $150 million secondary sale at $13 billion
- June: $200 million Series E at $16 billion (Founders Fund lead)
- July: $500 million Series E-2 at $22.5 billion (ICONIQ lead)
- November: $300 million at $32 billion (Lightspeed lead)
In just eight months, Ramp’s valuation has increased 146%, from $13 billion to $32 billion. The company has raised $2.3 billion in total equity financing since its 2019 founding by CEO Eric Glyman and co-founder Karim Atiyeh.
Current metrics:
- Revenue: Over $1 billion annualized (doubled from $500M twelve months ago)
- Customers: 50,000+ organizations (doubled year-over-year)
- Enterprise customers: 2,200+ spending $100K+ annually (133% YoY growth)
- Annual purchase volume: $100+ billion powered through the platform
- Free cash flow: Positive
- Profitability growth: 153% year-over-year
The strong investor participation reflects Ramp’s transformation from corporate card provider into a comprehensive “autonomous finance” platform. The company combines corporate cards, expense management, bill payments, procurement, travel booking, treasury management, and automated bookkeeping with AI-powered intelligence.
In October 2025, Ramp’s AI systems made 26,146,619 automated decisions across over $10 billion in customer spend:
- Policy agent: Prevented 511,157 out-of-policy transactions, saving $290,981,801
- Treasury agent: Moved $5.5 million from idle cash to 4% yield investments
- Fraud agent: Blocked a $49,000 AI-generated fake invoice
- Travel agent: Optimized booking decisions for cost savings
Customer impact is measurable: companies switching to Ramp spend 5% less per year on average while growing revenue 12% faster—more than double the U.S. national average. The platform has saved customers $10 billion and 27.5 million hours since launch.
Notable customers include CBRE, Shopify, Anduril, Figma, Notion, Cursor, The Chicago Blackhawks, The University of Tennessee, and Vercel. Bret Taylor, Co-Founder and CEO of Sierra and Chairman of OpenAI, noted: “I don’t want anyone at Sierra spending time on expense reports or invoices. Ramp’s AI has automated entire categories of work that used to slow us down.”
Ramp represents a rare fintech success story during a challenging period for the sector. While most fintechs struggled with valuation cuts in 2023-2024, Ramp suffered a 28% down round in late 2023, became cash-flow positive, then rocketed past every previous high-water mark. The company’s AI-native approach delivers measurable ROI, enabling growth rates 10x faster than the median publicly traded SaaS company.
Function Health Raises $298 Million Series B to Become Healthcare AI Unicorn
Fund Raised: $298 million
Valuation: $2.5 billion
Stage: Series B
Total Funding: $350 million
Investors: Redpoint Ventures (lead), a16z, Aglaé Ventures, Battery Ventures, NFDG (Nat Friedman and Daniel Gross), Alumni Ventures, NBA athletes Allen Crabbe and Blake Griffin, Roku founder Anthony Wood
Austin-based Function Health (recently rebranded as just “Function”) closed a $298 million Series B round led by Redpoint Ventures on Wednesday, reaching a $2.5 billion valuation and unicorn status. The oversubscribed round brings total capital raised to $350 million for the company founded in 2022 with a mission to make preventive healthcare accessible to everyone.
Function combines comprehensive lab testing (100+ tests), advanced medical imaging, and AI-powered health insights in a single platform. Members pay $365 annually (reduced from $499) for access to lab tests at over 2,000 Quest Diagnostic locations nationwide, AI-driven health recommendations, and consultations with physicians when results warrant attention.
Since launching in 2023, Function has completed over 50 million lab tests. The company operates 75 dedicated locations with plans to expand to 200 by year-end. In May 2025, Function acquired Ezra to add advanced imaging capabilities, now offering 22-minute AI-powered full-body MRI scans for $499.
Platform capabilities:
- 100+ comprehensive lab tests covering metabolic health, cardiovascular markers, hormones, nutrients, and cancer screening
- AI-powered analysis integrating lab results, medical research, and individual health data
- Full-body MRI screening using FDA-cleared AI (detecting cancers, aneurysms, endometriosis, stroke signs)
- Physician oversight with personalized health plans and lifestyle recommendations
- Longitudinal tracking showing health changes over time
Alongside the funding announcement, Function unveiled Medical Intelligence Lab, a proprietary generative AI model trained by physicians to provide personalized health insights. The model analyzes users’ lab data, medical history, and the latest research to deliver evidence-based recommendations.
New AI features:
- Private AI chat allowing members to query health data and receive personalized responses
- Protocols translating complex health information into actionable steps
- Integration with wearable devices and existing health records
- Predictive analytics identifying health risks before they become acute problems
Function’s celebrity and athlete backing extends beyond NBA players. Co-founder Dr. Mark Hyman (a functional medicine pioneer) brings medical credibility, while investors like Roku founder Anthony Wood and participation from Nat Friedman and Daniel Gross’s NFDG fund signal strong conviction in healthcare AI’s potential.
The competitive landscape includes players like Neko Health (founded by Spotify’s Daniel Ek), InsideTracker, and Superpower. However, Function differentiates through device-agnostic design accepting data from any lab or wearable, comprehensive test panels beyond basic bloodwork, and AI integration throughout the experience.
Market traction validates the approach:
- 50+ million lab tests completed since 2023
- 75 operational locations (expanding to 200 by year-end)
- 2,000+ Quest Diagnostic partnerships enabling nationwide access
- Reduced pricing from $499 to $365 annually to expand accessibility
The funding will accelerate AI model development, expand imaging locations, and scale member acquisition. Function is positioning preventive healthcare as a mainstream offering rather than a luxury service—a strategy reflected in the price reduction announced alongside the funding.
Function is democratizing longevity medicine and preventive healthcare. Traditional healthcare focuses on treating disease after it occurs. Function flips this model by combining comprehensive testing with AI-powered insights to identify and address health issues before they become serious. The $2.5 billion valuation reflects investor confidence that preventive, data-driven healthcare will become standard practice.
Genspark Becomes Unicorn with $275 Million Series B for Agentic AI
Fund Raised: $275 million
Valuation: $1.25 billion
Stage: Series B
Revenue: $50+ million annualized run rate (achieved in 5 months)
Investors: Emergence Capital Partners (lead), SBI Investment, LG Technology Ventures, Pavilion Capital, Uphonest Capital, plus all existing investors
Palo Alto-based Genspark raised $275 million in an oversubscribed Series B round Wednesday, achieving unicorn status at a $1.25 billion post-money valuation. Led by Emergence Capital (early backer of Salesforce, Zoom, and Box), the round included participation from global technology investors and all existing backers doubling down.
The company reached $50 million in annualized revenue run rate within just five months of launching its products—one of the fastest growth rates in the AI industry. Genspark previously raised $100 million in Series A earlier this year at approximately a $530 million valuation, reported Reuters in February.
Founded by industry veterans from Microsoft, Google, Meta, YouTube, and Pinterest, Genspark is pioneering “agentic AI” that autonomously completes complex business work from start to finish. Unlike AI chatbots requiring constant prompting and iteration, Genspark’s platform converts high-level business intent into finished deliverables.
Founding team:
- Eric Jing, CEO: Founding member of Microsoft Bing (2006), built previous company to $5.5 billion valuation
- Kay Zhu, CTO: Pioneered AI search ranking at Google (2011), launched world’s first deep neural network ranking model in production search (2013)
- Wen Sang, COO: PhD from MIT, founded and exited Smarking (Y Combinator and Khosla Ventures backed enterprise SaaS)
The funding coincides with the launch of Genspark AI Workspace, which includes:
- Genspark AI Inbox for email and communication automation
- Genspark Teams for collaborative AI agent deployment
- Genspark AI Sheets 2.0 for data analysis and modeling
- Genspark Enterprise with security, compliance, and control features
Genspark doesn’t rely on a single pre-trained model. Instead, it intelligently orchestrates 30+ AI models—including GPT, Claude, and Gemini alongside open-source alternatives. This is powered by 150+ proprietary in-house tools and 20+ premium datasets, allowing the platform to integrate with hundreds of enterprise tools, collect scattered data, and deliver polished outcomes.
The company originally launched as an AI search engine similar to Perplexity, generating explanatory webpages called “Sparkpages” in response to user queries. The service reportedly gained 2 million users in a few months. However, Genspark pivoted earlier this year away from search toward autonomous execution—a shift reflecting the broader trend toward verticalized, action-oriented AI applications.
Genspark represents the evolution from AI assistance to AI autonomy. The rapid path to $50M ARR validates market demand for AI that delivers finished work rather than requiring constant human guidance. This positions Genspark as a potential category leader in what could become a multi-billion dollar market as enterprises shift from “AI-assisted” to “AI-automated” workflows.
Other Notable Rounds
Tenzai Raises $75 Million Seed for AI Security Agents
Fund Raised: $75 million
Stage: Seed
Tenzai secured $75 million in seed funding to build AI-driven “hacker” agents for continuous offensive security testing. The company’s autonomous security agents continuously test enterprise defenses, identifying vulnerabilities before malicious actors can exploit them. This represents one of the largest seed rounds announced this week.
Phrontline Biopharma Closes $60 Million Pre-A+ for Cancer Therapeutics
Fund Raised: $60 million
Stage: Pre-A+
Phrontline Biopharma raised $60 million to advance bispecific ADC cancer therapeutics across China and the United States. The company leverages AI for drug discovery, accelerating the development of targeted cancer treatments.
Overstory Raises $43 Million Series B for AI Wildfire Prevention
Fund Raised: $43 million
Stage: Series B
Overstory secured $43 million to expand its AI wildfire and vegetation risk platform for electric utilities. The company uses geospatial AI and satellite imagery to predict wildfire risks and help utilities prevent catastrophic fires through proactive vegetation management.
Clover Security Raises $36 Million for AI Security Engineers
Fund Raised: $36 million
Stage: Series A
Clover Security raised $36 million to embed AI security agents into developer workflows and product lifecycles. The platform provides proactive security analysis integrated directly into development environments, shifting security left in the software development process.
DualBird Closes $25 Million for Software-Based Hardware Acceleration
Fund Raised: $25 million
Stage: Seed + Series A combined
DualBird raised $25 million to deliver hardware-grade cloud acceleration purely through software. The company’s technology enables performance improvements without expensive hardware upgrades, addressing growing demand for compute efficiency.
Tidalwave Secures $22 Million Series A for Mortgage Automation
Fund Raised: $22 million
Stage: Series A
San Francisco-based Tidalwave raised $22 million to accelerate AI mortgage automation. The platform deploys autonomous AI agents to handle end-to-end mortgage tasks including income verification and underwriting, aiming to slash the industry-standard 43-day loan closing times.
Target impact: Process 200,000+ loans annually (approximately 4% of projected 2026 U.S. mortgage originations)
With new capital, Tidalwave plans to scale adoption with lenders, hire engineering talent, and integrate with more financial institutions. The company promises a radically faster, paperless mortgage experience saving lenders and borrowers significant time and money.
Vijil Raises $17 Million for AI Agent Governance
Fund Raised: $17 million
Stage: Series A
Total Funding: $23 million
Vijil secured $17 million to provide testing, monitoring, and guardrails for enterprise AI agents. As organizations deploy autonomous AI systems at scale, Vijil enables validation before and after deployment by synthesizing customer-specific test suites and supporting open-source foundation models.
Why it matters: Enterprise AI governance is emerging as a critical category. Similar to how DevOps and security testing became essential in software development, AI agent validation and monitoring represents a necessary layer for safe enterprise deployment.
Flux Marine Raises $15 Million for Electric Boat Engines
Fund Raised: $15 million
Total Funding: $30+ million since 2020
Investors: Existing investors, customers, Collide Capital (new)
Bristol, Rhode Island-based Flux Marine closed $15 million in new funding to scale production of electric outboard motors. Led by CEO Ben Sorkin, the company has commercialized a 115-horsepower electric outboard engine and modular battery system that drops into various boat hulls, bringing electrification to marine propulsion.
Important Takeaway
This week’s $2.5+ billion in funding reveals four critical shifts reshaping AI investment:
1. Infrastructure Becomes Winner-Take-Most
Lambda’s $1.5 billion raise—far exceeding market expectations—validates that AI infrastructure commands premium valuations despite intense competition. The company’s Microsoft partnership positions it alongside CoreWeave as critical suppliers to hyperscalers.
The bottleneck has shifted from algorithms to physical infrastructure. While everyone debated which foundation model would win, energy availability emerged as the real constraint. Lambda addresses this by building gigawatt-scale data centers optimized for AI workloads, positioning itself for the next wave of scaling.
NVIDIA’s continued investment in Lambda (and previous backing of CoreWeave, Crusoe, and others) demonstrates the chip giant’s strategy: back companies that drive GPU demand while building ecosystem dependencies. This creates a powerful flywheel where infrastructure providers get priority chip access, enabling them to win more hyperscaler contracts, driving more chip purchases.
2. From AI Assistance to AI Autonomy
Genspark’s rapid rise to $50M ARR in five months and $1.25 billion valuation demonstrates market appetite for AI that delivers finished work, not just conversation. The company’s “intent to deliverable” model represents a fundamental shift in enterprise AI adoption.
The pattern is clear: companies tired of prompt engineering and iterative refinement want systems that convert business intent into completed outputs. This explains why Genspark’s CFO customer noted trying “20+ AI tools” before finding one that’s “boardroom ready.”
This trend extends beyond Genspark. Across the market, companies building autonomous execution systems—whether for customer support (Giga), security testing (Tenzai), or financial operations (Ramp)—are achieving faster growth and higher valuations than general-purpose chatbots.
The agentic AI stack is forming: identity layers, payment infrastructure (Natural last week), governance frameworks (Vijil), and workflow orchestration tools. This represents a massive greenfield opportunity, as legacy systems were never designed for autonomous software entities making real-world decisions and transactions.
3. AI-Native Fintech Resilience
Ramp’s trajectory—four funding rounds in 2025, valuation increasing from $13B to $32B—proves that AI-native financial platforms can achieve exceptional growth even as most fintech struggled through 2023-2024 corrections.
The difference is measurable ROI. Ramp’s AI makes 26+ million decisions monthly, preventing wasteful spending, optimizing treasury allocation, and blocking fraud. This isn’t theoretical productivity—customers spend 5% less and grow 12% faster, outcomes that justify premium valuations.
Contrast this with traditional fintech, which typically competes on rate arbitrage or user experience improvements. AI-native platforms create genuine competitive moats through automated intelligence that compounds over time as it learns organizational patterns.
The implication: expect more AI-native financial tools to emerge and command premium valuations. Any workflow involving financial decisions, approvals, or analysis becomes a target for intelligent automation.
4. Healthcare AI Democratization Accelerates
Function Health’s $2.5 billion valuation and pricing reduction (from $499 to $365 annually) signals healthcare AI moving beyond wealthy early adopters toward mainstream accessibility.
Traditional healthcare focuses on acute intervention after problems arise. Function flips this model: comprehensive baseline testing, continuous monitoring, AI-powered analysis identifying risks early, and personalized prevention strategies. This mirrors the shift from reactive to predictive maintenance in manufacturing—but for human health.
The market opportunity is massive. Function has completed 50 million lab tests since 2023, demonstrating consumer appetite for proactive health management when it’s accessible and affordable. The Medical Intelligence Lab launch—combining personal data with medical research via generative AI—represents the next evolution: truly personalized medicine at scale.
Expect accelerated competition in this category. Traditional healthcare providers will need to acquire or build similar capabilities to remain relevant, while new entrants will emerge targeting specific health conditions or demographics with verticalized AI health platforms.
The week also highlighted strategic corporate investing shaping AI development. NVIDIA’s investment in Lambda follows its pattern of backing infrastructure providers (CoreWeave, Crusoe, Uniphore) that drive GPU demand. TWG Global’s $1.5B Lambda investment—and $15B AI-focused fund anchored by Mubadala Capital—demonstrates institutional conviction in AI infrastructure.
The geographic distribution remains heavily US-weighted, though global talent continues flowing into American AI companies. Genspark’s team spans Microsoft, Google, Meta backgrounds; Function attracts celebrity and athlete backing; Ramp serves customers from “family farms to space startups.”
As we approach year-end, AI funding shows no signs of slowing. With $192.7 billion deployed year-to-date (52.5% of all global VC according to Bloomberg data), the sector continues dominating venture capital. However, investor selectivity has increased—only companies demonstrating strong revenue growth, product-market fit, and defensible advantages secure mega-rounds.
Check out our weekly roundups for comprehensive coverage of venture capital activity in the artificial intelligence space.