CB Insights released a research report covering the artificial intelligence sector’s evolution over the past year. The analysis highlights unprecedented venture capital inflows, shifting deal dynamics, and breakthroughs in areas like robotics and agent technologies, while underscoring challenges such as escalating costs and market consolidation. With global private AI firms securing $225.8 billion in funding—nearly twice the 2024 figure—the industry demonstrated steady growth, particularly in the fourth quarter, which alone accounted for $83.2 billion.
The research report further noted that this surge was driven by a concentration of mega-rounds exceeding $100 million, which represented 79% of total investments, signaling investors’ preference for established players amid a dip in overall deal volume during the latter half of the year.
A key trend is the dominance of large language model (LLM) developers, who captured 41% of all funding. Prominent players such as OpenAI, Anthropic, and xAI collectively raised $86.3 billion, comprising 38% of the sector’s total capital.
These frontrunners not only led in financial hauls but also in revenue and user traction, widening the gap in the “frontier model race.”
Smaller entities face mounting barriers due to skyrocketing development expenses, potentially leading to acquisitions like Nvidia’s rumored $2-3 billion bid for AI21 Labs.
Meanwhile, open-source innovations from entities like China‘s DeepSeek are introducing cost-effective training methods, and early experiments with post-LLM architectures hint at future disruptions.
Notably, nearly three-quarters of AI deals targeted early-stage ventures, fostering innovation at the grassroots level.
Robotics emerged as a powerhouse, commanding 11.4% of AI deal share—the highest among tracked sectors—and setting records in both funding and transactions when excluding LLMs.
Advances in this field are enabling sophisticated applications in manufacturing, defense, and autonomous vehicles.
Key players like Helsing, Anduril, and Figure secured top rounds, reflecting growing interest in humanoid robots and defense-oriented AI.
This contrasts with declining shares in digital health and fintech, underscoring robotics’ sustained momentum over the past five years.
Mergers and acquisitions (M&A) hit an all-time high with 782 deals, a 1.5-fold increase from 2024, representing 7.5% of venture exits.
This wave underscores corporate giants’ aim to effectively integrate AI agents and infrastructure.
Tech incumbents like Salesforce (with 10 acquisitions), Meta, and ServiceNow snapped up startups such as Manus, Moveworks, and Cognigy in deals valued up to $3 billion.
“Quasi-acquisitions,” including Nvidia’s $20 billion tech licensing pact with Groq and Meta’s substantial stake in Scale AI, further illustrate strategies to bolster AI capabilities through talent and technology absorption.
The report also spotlights the maturation of AI startups, with 75 new unicorns emerging—61% of all new unicorns in 2025—many achieving commercial scaling.
Sectors like healthcare (e.g., Abridge for clinical tools) and AI infrastructure (e.g., Fireworks AI) saw significant unicorn growth, indicating a shift toward market expansion and validation.
Looking ahead to 2026, CB Insights anticipates continued acceleration, fueled by recent raises like xAI’s $20 billion Series E and Anthropic’s planned $10 billion infusion.
As AI integrates deeper into physical and enterprise realms, the divide between resource-rich leaders and others may intensify, but open-source and specialized advancements promise broader accessibility. This report serves as a crucial roadmap for navigating AI’s transformative trajectory in 2026 and beyond.
