In 2025, Silicon Valley’s AI companies like Google Gemini and Microsoft Copilot saw record funding, with $150 billion raised, surpassing the previous high of $92 billion in 2021. OpenAI raised $40 billion, while Anthropic raised $13 billion, signaling a surge in investment in AI technology.

This influx of capital has created cash cushions to protect against a potential downturn, with the largest deals accounting for over 30% of the total deal value. Companies like OpenAI and Anthropic may list their shares in 2026, while other AI startups like Project Prometheus and Databricks also received significant funding.

The AI hype has spread to public markets, with tech companies like Nvidia, Microsoft, and Alphabet riding the AI wave. The top 10 most valuable companies globally are tech firms focusing on AI technology, collectively worth more than $3 trillion each. However, concerns about market value concentration have been raised, posing long-term systemic risks.

Productivity gains from AI automation have impacted early career jobs, sparking political pushback. The promise of AI agents that understand user intent and autonomously perform tasks like shopping and planning holidays rests on wider adoption in the economy. Big Tech companies are projected to invest over $500 billion in 2026 to build AI infrastructure.

Read more at Yahoo Finance: The biggest startups raised a record amount in 2025, dominated by AI