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Home / Business and Economy / AI Funding Frenzy: Mega-Rounds Ignite 2025 & 2026

AI Funding Frenzy: Mega-Rounds Ignite 2025 & 2026

20 Jan

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Summary

  • 49 startups raised $100M+ in 2024, with 7 exceeding $1B.
  • 2025 saw fewer mega-rounds but more multi-round companies.
  • 2026 began with $20B xAI and $250M Merge Labs funding.
AI Funding Frenzy: Mega-Rounds Ignite 2025 & 2026

In 2024, 49 AI companies successfully raised funding rounds of $100 million or more. Of these, three startups secured multiple "mega-rounds," and seven companies achieved rounds of $1 billion or larger. This significant investment activity continued into 2025.

While 2025 saw fewer companies raising rounds over $1 billion, the landscape shifted with more startups successfully raising multiple funding rounds, eight in total. This indicates a sustained investor appetite for AI innovation throughout the year.

The early weeks of 2026 have already demonstrated robust momentum. Elon Musk's xAI announced a substantial $20 billion Series E round, and Sam Altman's Merge Labs secured a $250 million seed round, with OpenAI as the lead investor. These initial deals suggest 2026 is poised to be another strong year for AI funding.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.
In 2024, seven AI companies raised funding rounds exceeding $1 billion.
Early 2026 saw xAI raise $20 billion and Merge Labs raise $250 million.
While fewer billion-dollar rounds occurred in 2025, more companies raised multiple funding rounds.

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