The question on everyone’s lips in the tech industry is whether we are witnessing an AI bubble. As excitement mounts, another nagging query has emerged: “Wait—they raised another round?” This year has seen an extraordinary influx of funding into several prominent AI startups, many of which have transitioned from mere “startups” to behemoths in their own right. Remarkably, some of these companies have raised not one, but multiple significant funding rounds, with valuations soaring in tandem.
Take Anthropic, for instance, which raised a staggering $3.5 billion in a Series E round in March, valuing the company at $61.5 billion. Merely six months later, in September, it managed to raise another $13 billion in a Series F round, elevating its valuation to an astonishing $183 billion. OpenAI, the creator of the widely popular ChatGPT, has set a high bar, achieving a $500 billion valuation in a recent tender offer—an increase from its earlier $300 billion valuation in March, and a striking jump from $157 billion at the start of the year.
In the span of just one year, between October 2024 and October 2025, OpenAI’s valuation grew by about $29 billion each month, equating to nearly $1 billion per day. This isn’t limited to the heavyweights of the AI sector; even smaller players are seeing impressive growth. For example, recruitment startup Mercor raised a $100 million Series B round in February, leading to a $2 billion valuation, only to follow up later with another $350 million round that would skyrocket its valuation to $10 billion.
Over a dozen startups have experienced similar success in 2025, with companies like Cursor, Reflection AI, and Harmonic all raising funding rounds with escalating valuations. This trend prompts critical questions regarding the sustainability of such rapid growth and the potential risks involved. Industry insiders suggest that the scenario isn’t simply a byproduct of favorable market conditions reminiscent of the zero interest-rate policy era of 2021, during which many startups encountered challenges post-funding.
Today, however, many peer observers believe that the high-flying AI startups reflect meaningful business traction and achievements. Notably, startups like Lovable and Decagon have reported substantial revenue growth in their early stages, with Cursor achieving an impressive $100 million in annual recurring revenue (ARR) in its first year.
Max Altman, cofounder of Saga Ventures, contends that the accelerating fundraising trend serves a strategic purpose: it can deter competition by securing resources and investments early on. Yet, this rapid capital influx can also have adverse implications if startups become overly reliant on continuous funding and fail to solidify their foundations. Concerns have been expressed about the potential for bankruptcies if valuations become unsustainable or companies are unable to retract their initial spending in a challenging market.
Venture capitalists are increasingly concentrating their investments into recognized frontrunners in the AI sector, leading to the current situation where vast amounts of money are directed toward a select few. However, while the enthusiasm surrounding generative AI continues to fuel immense funding rounds, industry experts caution that not every startup will thrive, and some may encounter significant shortcomings.
This landscape underscores the dual-edged nature of rapid innovation and substantial investment—while many companies may achieve remarkable heights, the journey is fraught with risks and uncertainties. Yet, the ongoing developments signal an exhilarating moment for the AI sector, promising new technological advancements and innovative solutions that could significantly impact various industries.