Generative AI, Robotics, and Healthcare Lead the Pack

The biggest funding rounds of the quarter went to companies working on generative models, autonomous robotics, and AI-powered diagnostics:

• Anthropic raised $2.3 billion in Series F for expansion of its Claude AI platform
• Sanctuary AI closed $1.1 billion to scale its humanoid robotics workforce
• Tempus Labs secured $900 million to advance precision oncology tools powered by machine learning

“We’re seeing strong momentum across vertical AI categories,” said Clara Jin, senior analyst at CB Insights. “Investors are looking beyond language models and into areas with real-world automation and long-term contracts.”

Why Now? Post-Hype Realism and Enterprise Adoption

Following a slowdown in late 2024 due to regulatory uncertainty and overhyped valuations, 2025 appears to mark a shift from experimentation to enterprise integration. Tech giants are increasingly acquiring or partnering with startups to accelerate in-house capabilities.

Microsoft, for example, invested in four AI infrastructure startups in Q2 alone, while Amazon acquired AI-native call center software firm Voco for $620 million.

Venture Capital Confidence Returns

Venture capital firms that pulled back last year are re-entering the AI market aggressively. Sequoia Capital, a16z, and SoftBank Vision Fund were among the most active investors in Q2.

“The tools are better. The models are more efficient. The revenue is more predictable,” said David Wang, managing partner at Ascend Capital. “That’s why the funding gates have reopened.”

Risk Factors Remain

Despite the funding spike, challenges remain. Experts warn that valuations are again creeping into risky territory, especially for early-stage companies with limited real-world deployment.

In addition, growing regulation around AI usage and privacy—especially in the EU and California—may impact long-term scalability for some firms.

“Investors need to balance excitement with diligence,” said Neha Kapoor, a fintech investor at Altimeter Group.