TL;DR

xAI seeks $9.3B, Applied Intuition and Helsing raise mega-rounds, OpenAI lands $200M Pentagon contract.

Highlights

• xAI seeks $4.3B in new equity on top of a $5B debt raise; burn rate ~$1B/month, 2025 spend forecast at $13B, with 2024 revenue projected at $500M 1.
• Applied Intuition raises $600M Series F at $15B valuation (2x since March 2024); pre-IPO positioning; Mach Industries secures $100M for defense tech 2.
• Ramp closes $200M round led by Founders Fund, valuation rises to $16B (+23% in 3 months) 3.
• Helsing raises €600M (~$650M) led by Daniel Ek’s Prima Materia, now valued at €12B; focus on AI defense software 4.
• Sword Health raises $40M at $4B valuation to expand into AI-driven mental health; IPO delayed to 2028 5.
• SoftBank sells $4.8B in T-Mobile shares, reducing stake to 5.6%, freeing capital for AI investments 6.
• Eigen Labs launches EigenCloud (crypto-native cloud); a16z buys $70M in EIGEN tokens, total raised now $235M 7.
• OpenAI secures $200M DoD contract to prototype AI for U.S. defense; first direct Pentagon deal 8.
• Coinbase files with SEC to offer tokenized stock trading, expanding into digital representations of equities 10.
• JPMorgan files “JPMD” trademark, will pilot a dollar deposit token on Coinbase ’s Base blockchain for institutions 11.
• Eli Lilly to acquire Verve Therapeutics for up to $1.3B, expanding gene-editing pipeline 9.
• Google launches Gemini 2.5 Pro, Flash GA, and Flash-Lite, expanding AI model suite for enterprise and developers 14.
• Oracle launches Defense Ecosystem to help small tech/AI firms access Pentagon contracts via cloud partnerships 13.
• Reddit shares rise 7% after launching AI-powered ad targeting tools 15.
• Taiwan tests bomb-capable sea drones, signs deal with Auterion to expand autonomous defense capabilities 12.

Commentary

Capital continues to flow aggressively into AI infrastructure, defense tech, and fintech, with mega-rounds and strategic activity concentrated in companies scaling quickly or positioned for near-term IPOs. xAI’s pursuit of $9.3B in new funding, despite a high burn and limited near-term revenue, highlights the scale of capital required for foundational AI players and the willingness of both equity and debt investors to back them 1. SoftBank’s T-Mobile divestment and redirection of proceeds toward AI underscores the recycling of large-cap tech capital into next-gen growth sectors 6.

Defense technology is a clear magnet for both venture and strategic capital. Applied Intuition’s $600M round at a $15B valuation, Helsing’s €600M raise, and Mach Industries’ $100M deal reflect robust investor appetite for dual-use AI and autonomy platforms, particularly as government contracts and geopolitical tensions drive demand 24. OpenAI’s $200M Pentagon contract and Oracle ’s Defense Ecosystem initiative further illustrate the growing interface between private AI innovation and public sector procurement 813, while Taiwan’s sea drone program and Auterion partnership reinforce international demand for autonomous defense solutions 12.

Fintech and digital asset infrastructure remain active. Ramp’s valuation jump 3, JPMorgan ’s pilot of a deposit token on Coinbase ’s Base 11, and Coinbase ’s SEC filing for tokenized equities 10 all point to continued institutionalization and regulatory engagement in the sector. Eigen Labs’ EigenCloud launch, backed by a16z’s $70M token purchase, signals ongoing VC interest in crypto-native infrastructure that bridges Web2, Web3, and AI 7.

On the product front, Google’s expansion of its Gemini AI suite 14 and Reddit’s AI-powered ad tools 15 demonstrate ongoing investment in vertical AI applications. Sword Health’s $40M raise to expand into AI-driven mental health and Eli Lilly ’s $1.3B acquisition of Verve Therapeutics both indicate that digital health and biotech remain attractive for both private capital and strategic buyers, with M&A providing viable exit paths 59.

For VCs, the environment favors scale, differentiated technology, and regulatory access. Defense, AI, and fintech infrastructure are attracting both late-stage capital and strategic acquirers, while regulatory clarity on digital assets could catalyze further deal flow. Watch for continued large rounds, cross-border defense tech activity, and biotech consolidation.