The venture capital landscape continues to be captivated by the transformative power of artificial intelligence, yet this past week also illuminated a robust appetite for innovations rooted in the physical world, particularly drone delivery and critical industrial technologies. While AI pure-plays and AI-centric companies dominated the top ten list, securing substantial investments across infrastructure, medical applications, and ambitious research labs, the single largest round underscored investor confidence in tangible, real-world impact. This blend of digital and physical innovation paints a vivid picture of the diversified yet strategic focus of venture capital in early 2025, signaling a market eager to back technologies that promise both computational leaps and operational efficiencies.

For those tracking the pulse of the U.S. startup ecosystem, the Crunchbase Megadeals Board remains an essential resource, curating the largest $100 million-plus venture deals. This weekly roundup, tracking the period of January 17-23, revealed a significant inflow of capital, demonstrating that despite broader economic uncertainties, conviction in pioneering technologies remains unwavering. The cumulative total for these top ten rounds alone reached an impressive $2.66 billion, a testament to the scale of ambition and the depth of investor pockets.

The prevailing narrative of AI’s insatiable demand for capital was once again confirmed. From foundational AI labs to specialized infrastructure and sector-specific applications like medical AI, investors poured hundreds of millions into companies promising to redefine industries through intelligent automation and data processing. However, the week’s leading investment, a massive $600 million for drone delivery giant Zipline, served as a powerful reminder that venture capitalists are equally keen on platforms that bridge the digital and physical realms, delivering tangible services and products with unprecedented efficiency. This dual focus highlights a maturing investment environment, one that values both the abstract potential of algorithms and the concrete impact of advanced robotics and logistics.

The Top 10 Funding Rounds of the Week (January 17-23, 2025):

1. Zipline, $600M, Drone Delivery: Leading the pack was South San Francisco-based Zipline, the drone delivery unicorn, which announced a staggering $600 million financing round at an impressive $7.6 billion valuation. This mega-round saw participation from a consortium of heavy-hitting investors, including Fidelity, Baillie Gifford, Valor Equity Partners, and Tiger Global. Zipline’s success story is built on its proven track record, having surpassed 2 million commercial deliveries globally, primarily in healthcare logistics in Africa, before expanding its footprint within the U.S. The fresh capital is earmarked for an ambitious expansion plan, with the company projecting service launches in at least four new states this year, starting with key metropolitan areas like Houston and Phoenix. This investment not only validates Zipline’s innovative approach to last-mile logistics but also signals a growing mainstream acceptance and strategic importance of autonomous drone delivery for various sectors, from medical supplies to retail goods. The valuation reflects the massive addressable market for efficient, rapid, and sustainable delivery solutions, particularly in underserved or challenging geographies.

2. Humans&, $480M, AI: In a remarkable demonstration of investor appetite for groundbreaking AI research, Humans&, a nascent AI lab, secured an extraordinary $480 million in seed funding. Founded just in September, this upstart venture boasts an all-star team of top researchers previously hailing from AI powerhouses like Google, Anthropic, xAI, OpenAI, and Meta. Their stated mission to apply AI in ways "centered around people and their relationships with each other" suggests a focus on ethical, empathetic, and socially beneficial AI applications, potentially moving beyond pure computational power to address human interaction and societal well-being. This unprecedented seed round size underscores the venture community’s belief in the team’s pedigree and the potential for a new paradigm in AI development, positioning Humans& as a formidable contender in the race to define the next generation of artificial intelligence.

3. Baseten, $300M, AI Infrastructure: The foundational layer of the AI revolution, infrastructure, received a significant boost with Baseten, an AI infrastructure startup, reportedly raising $300 million. This financing round, which valued the 7-year-old San Francisco-based company at $5 billion, included strategic investments from IVP, CapitalG, and, notably, Nvidia. Nvidia’s participation is particularly significant, as the chip giant continues to solidify its ecosystem play by backing companies that facilitate the deployment and scaling of AI models. Baseten specializes in AI inference, the process of running trained AI models to make predictions or decisions. As AI applications proliferate, efficient and scalable inference infrastructure becomes critical, making Baseten a key enabler for businesses looking to integrate AI into their operations without the complexity of managing underlying hardware and software.

4. OpenEvidence, $250M, Medical AI: Highlighting the transformative potential of AI in healthcare, OpenEvidence, an AI platform designed for doctors, announced a $250 million Series D funding round. This latest injection of capital effectively doubled its valuation to an impressive $12 billion. Co-led by Thrive Capital and DST, this marks the fourth fundraise for the Miami-based startup in less than a year, indicating explosive growth and immense investor confidence in its ability to revolutionize medical diagnostics, treatment planning, and research through AI. OpenEvidence’s platform likely assists physicians in synthesizing vast amounts of medical data, identifying patterns, and supporting clinical decision-making, promising to enhance accuracy, efficiency, and ultimately, patient outcomes in an increasingly complex healthcare landscape.

5. Noveon Magnetics, $215M, Rare Earth Magnets: Shifting focus to critical materials and supply chain resilience, San Marcos, Texas-based Noveon Magnetics secured $215 million in Series C funding. This round, which included a substantial $200 million from One Investment Management, will be directed towards expanding the company’s U.S.-based manufacturing capacity for sintered rare earth permanent magnets. These magnets are indispensable components in a wide array of high-tech applications, including electric vehicles, wind turbines, defense systems, and advanced electronics. With geopolitical tensions and supply chain vulnerabilities making headlines, domestic production of rare earth magnets has become a strategic imperative, making Noveon Magnetics a vital player in securing critical industrial capabilities within the United States.

6. Upscale AI, $200M, AI Infrastructure: Another AI infrastructure player making waves this week was Upscale AI, an AI networking infrastructure startup, which landed $200 million in Series A funding. The round was led by prominent investors Tiger Global, Premji Invest, and Xora Innovation, catapulting the Santa Clara, California-based company to a valuation of over $1 billion – achieving unicorn status in less than two years since its founding. Upscale AI’s rapid ascent underscores the urgent need for specialized networking solutions to handle the immense data flows and computational demands of modern AI workloads. As AI models grow in complexity and size, traditional networking infrastructure often struggles, creating a burgeoning market for companies like Upscale AI that are building the next generation of high-performance, AI-optimized networks.

7. (Tied) Preply, $150M, Online Tutoring: Demonstrating sustained growth in the education technology sector, Preply, an online language learning marketplace, raised $150 million in Series D funding. Led by WestCap, this financing reportedly set a $1.2 billion valuation for the 14-year-old, Brookline, Massachusetts-based company, solidifying its unicorn status. Preply connects students with tutors for personalized language instruction across various languages, capitalizing on the enduring demand for language proficiency in a globalized world. The investment highlights the continued relevance of human-led online learning, even amidst the rise of AI-powered educational tools, as personalized interaction and cultural immersion remain critical components of effective language acquisition.

8. (Tied) Inferact, $150M, AI Inference: Further emphasizing the importance of efficient AI deployment, Inferact announced its launch with an impressive $150 million in initial funding. This significant seed round was co-led by top-tier venture firms Andreessen Horowitz and Lightspeed Venture Partners, valuing the newly formed company at $800 million. Inferact is founded by the creators and maintainers of vLLM, a popular open-source LLM inference engine. Their focus on optimizing the inference process for large language models addresses a critical bottleneck in deploying and scaling generative AI applications. By making LLMs faster and more cost-effective to run, Inferact aims to democratize access to powerful AI capabilities, enabling a wider range of developers and businesses to integrate cutting-edge AI into their products and services.

9. (Tied) Claroty, $150M, Cybersecurity: Cybersecurity firm Claroty secured $150 million in Series F funding, led by Golub Growth. Headquartered in New York with its origins in Israel, the 11-year-old company has now raised close to $900 million in equity funding to date, according to Crunchbase data. Claroty specializes in protecting operational technology (OT) and industrial control systems (ICS), which are critical infrastructure components in sectors like manufacturing, energy, and utilities. As industrial environments become increasingly connected, they also become more vulnerable to cyberattacks. Claroty’s robust funding history underscores the escalating global demand for specialized cybersecurity solutions that can safeguard these vital systems from sophisticated threats, ensuring operational continuity and national security.

10. Zanskar, $115M, Geothermal Energy: Rounding out the top ten, Salt Lake City-based Zanskar, a startup applying AI to geothermal exploration, raised $115 million in Series C funding. This round was led by Spring Lane Capital and saw participation from a diverse group of new and existing investors. Zanskar’s innovative approach leverages AI to significantly de-risk and accelerate the discovery and development of geothermal energy resources. Geothermal energy, a clean and reliable baseload power source, has historically been challenged by high exploration costs and uncertainties. By utilizing AI to analyze geological data, predict drilling success, and optimize site selection, Zanskar is poised to unlock the vast potential of geothermal energy, contributing significantly to the global transition towards sustainable energy and climate resilience.

Methodology:

This weekly compilation tracks the largest announced funding rounds recorded in the Crunchbase database for U.S.-based companies between January 17-23. While efforts are made to include all significant rounds, a slight time lag may occur for some deals reported later in the week.

In summary, the week’s funding activities reveal a multifaceted venture capital landscape. While AI remains the undisputed heavyweight, attracting massive investments across its foundational and applied layers, there is a clear strategic imperative to fund technologies that translate digital innovation into tangible, real-world impact. From autonomous drone delivery and critical materials manufacturing to renewable energy optimized by AI, investors are backing companies that are not only pushing technological boundaries but also addressing pressing global challenges in logistics, healthcare, security, and sustainability. The sheer scale of these rounds, including remarkable seed and early-stage investments, signifies a profound confidence in the future-shaping potential of these innovative ventures.