Nvidia's $5B Intel Investment & Groq's $750M Funding Highlight AI Chip Race - AI Funding Brief #32
September 23, 2025 -
AI Funding Brief
Hi there,
In this edition of the AI Funding Brief, we're diving into some significant funding and investment news within the AI business landscape. The New Zealand Institute for Advanced Technology is set to receive a substantial boost with a $41 million allocation from the New Zealand government over the next seven years, aimed at advancing AI research and commercialization. Meanwhile, AI code review startup CodeRabbit has successfully raised $60 million in Series B funding, which will be used to tackle the challenges posed by AI-generated code.
Additionally, AI security firm Irregular has secured $80 million to enhance its capabilities in identifying risks in AI models, with backing from Sequoia Capital and Redpoint Ventures. In the AI chip market, Groq has raised a whopping $750 million, elevating its valuation to $6.9 billion, positioning it as a competitor to Nvidia. These stories, among others, highlight the dynamic and rapidly evolving landscape of AI funding and investment.
In this edition of the AI Funding Brief, we're diving into some significant funding and investment news within the AI business landscape. The New Zealand Institute for Advanced Technology is set to receive a substantial boost with a $41 million allocation from the New Zealand government over the next seven years, aimed at advancing AI research and commercialization. Meanwhile, AI code review startup CodeRabbit has successfully raised $60 million in Series B funding, which will be used to tackle the challenges posed by AI-generated code.
Additionally, AI security firm Irregular has secured $80 million to enhance its capabilities in identifying risks in AI models, with backing from Sequoia Capital and Redpoint Ventures. In the AI chip market, Groq has raised a whopping $750 million, elevating its valuation to $6.9 billion, positioning it as a competitor to Nvidia. These stories, among others, highlight the dynamic and rapidly evolving landscape of AI funding and investment.
Irregular Secures $80 Million for AI Model Security
AI security firm Irregular has raised $80 million in funding to enhance its capabilities in identifying risks in AI models, with a valuation of $450 million. Read more
CodeRabbit Secures $60 Million in Series B Funding
AI code review startup CodeRabbit has raised $60 million in Series B funding, led by Scale Venture Partners. This funding round brings the company's valuation to $550 million and will be used for global hiring and product development. Read more
Groq Secures $750 Million, Valued at $6.9 Billion
AI chip startup Groq has raised $750 million in a funding round, achieving a valuation of $6.9 billion. The company focuses on AI inference with its language processing units. Read more
New Zealand Allocates 41 Million USD for AI Research
The New Zealand government plans to invest 41 million USD over seven years in AI research and commercialization at the New Zealand Institute for Advanced Technology. Read more
Alt Capital Raises $275 Million for AI Fund
Jack Altman, co-founder of Lattice, has successfully raised $275 million for his new venture fund, Alt Capital II, aimed at investing in AI startups focused on enterprise software. Read more
Hyperbound Secures $15M for AI Sales Training Expansion
Hyperbound, a startup based in San Francisco, has successfully raised $15 million in a Series A funding round led by Peak XV Partners. The company specializes in AI-driven sales training tools aimed at improving coaching and performance for sales teams. Read more
Lila Sciences Secures $235 Million for AI Research Expansion
Lila Sciences, a biotechnology startup, has raised $235 million to enhance its AI-driven laboratories for drug discovery and materials development. Read more
Nothing Secures $200 Million for AI Platform and Devices
British tech company Nothing has raised $200 million in a Series C funding round to develop an AI platform and new devices, including smart glasses and humanoid robots. Read more
Nvidia Considers $500 Million Investment in Wayve
Nvidia is considering a $500 million investment in Wayve, a UK-based self-driving technology startup. This move is part of Nvidia's larger plan to invest in the UK's AI startup ecosystem. Read more
xAI Seeks $10 Billion Funding at $200 Billion Valuation
Elon Musk's artificial intelligence company, xAI, is reportedly in the process of raising $10 billion in a funding round. This would increase the company's valuation to $200 billion, positioning it above competitors like Anthropic, but still below OpenAI. Read more
Nvidia Invests $900M in Enfabrica for GPU Connectivity
Nvidia has invested over $900 million in Enfabrica to hire CEO Rochan Sankar and license technology aimed at improving GPU connectivity for AI applications. Read more
OpenAI and NVIDIA Partner for $100 Billion AI Infrastructure
On September 22, 2025, NVIDIA and OpenAI announced a strategic partnership to invest $100 billion in deploying 10 gigawatts of NVIDIA systems for AI infrastructure, aiming to enhance OpenAI's AI model capabilities. Read more
Mergers & Acquisitions
Terra Drone Corporation has acquired Aloft Technologies, Inc. to bolster its U.S. drone operations and UTM solutions. Meanwhile, Nvidia has invested $5 billion in Intel to collaborate on AI chip development, focusing on enhancing data center and PC products with Nvidia's NVLink interface.
- Terra Drone Acquires Aloft Technologies for U.S. Expansion
- Nvidia Acquires $5 Billion Stake in Intel for AI Chip Collaboration
- Atlassian Acquires DX for $1 Billion
- Check Point Acquires Lakera to Boost AI Security
- Apple Acquires AI Startup WhyLabs
- Workday Acquires Swedish AI Startup Sana for €928 Million
- Gridspertise Acquires Energyworx for AI Energy Solutions
- Arkade AI Acquires Loop Marketers for AI-Driven Lead Generation
- V2X Acquires QinetiQ's U.S. Intelligence Business
- zvoove Acquires Plan4Flex to Boost AI in Workforce Management
IPO's & Market Moves
Kingsoft Cloud Holdings Limited announced a proposal to offer 282 million shares to fund AI infrastructure and cloud service enhancements. Meanwhile, Boost Run is set to become publicly-listed through a merger with Willow Lane Acquisition Corp, valued at $614 million, to enhance its capabilities in the AI infrastructure market.
- Kingsoft Cloud Plans Share Offering to Boost AI Infrastructure
- WhiteFiber, Inc. to Ring Nasdaq Closing Bell
- Boost Run to Go Public via Merger with Willow Lane
- Netskope Sets IPO Price at $19, Trading on Nasdaq Soon
- Octopus Energy Plans $15 Billion IPO for Kraken Platform
Other Funding News
Nory, an AI-native restaurant management platform, has raised $37 million in Series B funding to enhance its platform and expand into the US market. Meanwhile, ARTHEx Biotech secured $87 million to advance its lead program, ATX-01, for treating Myotonic Dystrophy Type 1, supporting clinical trials and RNA medicine development.
- Nory Secures $37 Million for US Expansion
- Humain Seeks Funding from Blackstone and BlackRock for AI Expansion
- Vega Secures $65 Million Funding, Valued at $400 Million
- Alphabet Hits $3 Trillion Market Cap
- ARTHEx Biotech Raises $87 Million for Myotonic Dystrophy Treatment
- Dyna Robotics Raises $120 Million for Robotic Development
- Quantum Computing Inc. Raises $500 Million for AI and Quantum
- Remedio Raises $65M, Valued at $300M
Startup Funding
Rocket.new has successfully raised $15 million in seed funding from Salesforce Ventures and Accel to enhance its AI-powered app development platform. Meanwhile, Rulebase has secured $2.1 million in pre-seed funding to improve back-office operations in financial services using AI technology.
- Rocket.new Secures $15M for AI App Development
- Rulebase Raises $2.1 Million for AI in Fintech
- Google Ventures Invests in Blacksmith for CI Enhancement
- Keplar Raises $3.4 Million for Voice AI in Market Research
- wexler.ai Raises $5.3 Million for Legal AI Platform
- Sonair Secures $6M for ADAR 3D Sensors
- Conduct Raises $12M to Modernize ERP Systems with AI
- Icarus Robotics Secures $6.1M for AI Drones in Space
- Spara Launches AI Platform with $15 Million Funding
- Tanka Introduces AI Fundraising Agent for Startups
- Kertos Secures €14M to Enhance AI Compliance Platform
- Seapoint Launches AI Financial Platform for Startups
- Trinity Capital Invests $45M in Rapid Micro Biosystems
- Lucid Green Secures Funding for AI Compliance in Cannabis
- Terra Security Secures $30M for AI Penetration Testing
- Circuit & Chisel Raises $19.2M for AI Payment Protocol
- Unit 221B Secures $5 Million for AI Threat Platform
- Mycroft Secures $3.5 Million Seed Funding
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