TL;DR

US startup funding up 76% led by AI; OpenAI to launch GPT-5; stablecoin rules signed.

Highlights

• US startup funding rose 75.6% YoY to $162.8B in H1 2025, with AI attracting 64% of VC capital; startup acquisitions reached $100B, up 155% YoY, led by enterprise software and healthcare 1.
• OpenAI is preparing to launch GPT-5 and its first open-weight LLM since 2019; internal models achieved gold-medal performance at the 2025 International Math Olympiad 34.
• Major tech companies (Microsoft , Intel , Amazon , Google ) collectively cut over 20,000 jobs amid AI-driven restructuring, shifting resources toward AI infrastructure and talent 9.
• Nvidia ’s China AI chip shipments face up to nine months of delays due to TSMC capacity constraints following export ban disruptions 8.
• President Trump signed the GENIUS Act, establishing the first US federal framework for stablecoins; industry expects accelerated institutional adoption 5.
• BlackRock acquired $2.5B in Bitcoin and $395M in Ethereum ; Ethereum ETFs saw a record $1B weekly inflow, surpassing $7B total 1011.
• Bullish, a Peter Thiel-backed crypto exchange, filed for an NYSE IPO despite a $349M Q1 loss 2.
• Indian crypto exchange CoinDCX suffered a $44M hack but will cover losses from treasury, with customer assets unaffected 7.
• SpaceX Starlink reached 6M users across 140 countries, expanded direct-to-mobile service in Canada, and launched 24 new satellites; performance constraints noted at high user density 6.
• Block Inc. (Square) jumped 11% after S&P 500 inclusion; Robinhood and AppLovin were not added 13.
• Singapore faces a major cyberattack on critical infrastructure attributed to a China-linked group, raising regional cybersecurity concerns 15.
• Astronomer CEO suspended after a viral incident, highlighting governance and reputational risk for private tech firms 12.

Commentary

Venture funding in the US has rebounded sharply, with AI as the primary catalyst—capturing nearly two-thirds of all VC dollars and driving a surge in both startup formation and exits 1. The $100B in H1 2025 acquisitions, particularly in enterprise software and healthcare, points to strong liquidity and ongoing consolidation, creating a favorable environment for both early-stage and growth-stage investors seeking viable exit pathways 1.

OpenAI ’s upcoming GPT-5 launch and release of an open-weight LLM signal continued rapid progress in foundational AI models 34. The achievement of gold-medal performance on mathematical reasoning tasks demonstrates tangible advances in AI capabilities, likely to raise the bar for technical differentiation and attract further capital into AI-native startups 14. However, the ongoing AI-driven workforce restructuring at major tech firms is increasing the available pool of experienced talent, while also heightening competition and salary pressures for top engineers 9.

In digital assets, regulatory clarity is improving with the GENIUS Act, which is expected to lower barriers for institutional adoption of stablecoins and related fintech products 5. BlackRock ’s significant crypto ETF inflows and Bullish’s IPO filing point to renewed institutional and public market interest 102, even as security incidents like the CoinDCX hack underline the need for robust operational controls in centralized crypto platforms 7.

Infrastructure and security remain in focus. Starlink’s global expansion and new direct-to-mobile offerings open opportunities for connectivity and IoT startups, though scaling challenges persist 6. The cyberattack on Singapore’s critical infrastructure highlights the importance of cybersecurity, particularly for companies with exposure to Asia-Pacific markets 15.

VCs should monitor AI platform developments, regulatory shifts in digital assets, and infrastructure/security risks. Expect continued M&A activity and heightened competition for technical talent, especially in AI and crypto.