TL;DR

OpenAI backs Merge Labs to rival Neuralink; AI VC funding hits record concentration; Stripe, Circle launch blockchains.

Highlights

• OpenAI and Sam Altman are backing Merge Labs, a brain-computer interface startup seeking $250M at an $850M valuation to compete with Neuralink 1.
• AI funding remains highly concentrated: 41% of U.S. VC dollars in 2025 have gone to just ten AI companies; global Q2 AI VC funding reached one-third of all deployed capital 9.
• Anthropic is offering its Claude AI model to all U.S. government agencies for $1, matching OpenAI’s recent move and intensifying competition for federal contracts 8.
• CoreWeave’s Q2 revenue rose 206% to $1.21B, with losses widening to $267M; backlog increased to $30.1B, but shares fell 6% on profitability concerns 10.
• Stripe is developing “Tempo,” a high-performance payments Layer-1 blockchain with Paradigm, furthering its blockchain and stablecoin strategy 7.
• Circle posted $658M in Q2 revenue (up 53% YoY), launched the Arc enterprise Layer-1 blockchain, and filed to sell 10M additional shares post-IPO 13.
• BitMine Immersion increased its Ether holdings to $5B and expanded its stock sale program to $24.5B, aiming to own 5% of ETH supply 14.
• Rocket Lab acquired Geost for $275M to add in-house sensor payload capabilities; India’s Pixxel-led consortium secured a $137M contract for a 12-satellite Earth observation constellation 4.
• Marathon Digital is acquiring 64% of EDF’s Exaion for $168M, marking a significant move into AI/HPC infrastructure beyond Bitcoin mining 5.
• The U.S. Department of Energy selected 11 startups, including Oklo and AaloAtomics, to build advanced nuclear reactors by 2026, supporting small-modular and micro-reactor deployment 1112.
• Cardinal Health is acquiring Solaris Health for $1.9B to expand its specialty care network, despite a Q4 revenue miss and 6% stock drop 2.
• AST SpaceMobile stock rose 15% after confirming full funding for its 60-satellite plan, despite a wider Q2 loss and revenue miss 15.

Commentary

AI remains the dominant sector for venture capital, with capital concentration at unprecedented levels. The fact that 41% of U.S. VC dollars are flowing to just ten AI companies highlights a continued focus on scale and defensibility 9. This dynamic is reinforced by a price war for government contracts, as Anthropic and OpenAI both offer their AI models to U.S. agencies for $1, signaling that vendors are prioritizing market share and future lock-in over near-term revenue 8. These trends suggest that government procurement is becoming a key battleground for AI startups, with potential downstream benefits for early-stage companies that can demonstrate security and compliance.

Infrastructure and fintech are also seeing significant activity. CoreWeave’s rapid revenue growth and expanding backlog reflect sustained demand for AI compute, but ongoing losses and market reaction underscore the need for a clear path to profitability 10. Stripe’s development of the Tempo blockchain with Paradigm 7, and Circle’s Arc Layer-1 launch 13, indicate a push by leading fintechs to own more of the payments stack and capture value in programmable finance. These moves may create new opportunities for early-stage infrastructure startups and potential M&A targets as incumbents seek to control key layers.

In deep tech, OpenAI’s involvement in Merge Labs 1 and Rocket Lab’s acquisition of Geost 4 point to renewed interest in hardware and dual-use technologies, particularly those intersecting with AI, neuroscience, and defense. The U.S. Department of Energy’s selection of 11 startups for advanced reactor pilots, including Oklo and AaloAtomics 1112, further demonstrates government willingness to accelerate commercialization of capital-intensive technologies via non-dilutive support and streamlined permitting. These developments may drive increased deal flow and valuations in frontier sectors.

Digital asset activity remains robust, with BitMine Immersion’s aggressive Ether accumulation and expanded stock sale program reflecting both bullish sentiment and evolving treasury strategies 14. Circle’s strong post-IPO performance and product launches reinforce the trend toward regulated digital finance infrastructure 13.

For VC investors, the current environment favors focused, sector-specific bets in AI, fintech infrastructure, and deep tech, while emphasizing the importance of regulatory alignment and scalability. Watch for further consolidation, government-backed pilots, and continued concentration of capital in AI and compute infrastructure.