Startups Weekly: Major Acquisitions and Funding Rounds Dominating the Tech Landscape

This week in the world of startups was marked by significant acquisition activity and a surge in venture capital funding, particularly within the AI sector. Companies ranging from cybersecurity firms to HR tech platforms were at the forefront of notable transactions and capital raises. Key Acquisitions This Week Israeli mobile forensics company Cellebrite acquired Corellium, a mobile device virtualization and testing startup, for $170 million in cash plus $20 million in equity. Corellium's platform allows for the virtualization and testing of mobile devices, enhancing Cellebrite's capabilities in mobile forensics and security. IBM purchased Seek AI, an AI platform that enables users to ask natural language questions about enterprise data, for an undisclosed amount. Seek AI's technology will integrate into IBM's Watsonx AI Labs, further bolstering IBM's AI offerings and accelerating its AI-driven initiatives. Brussels-based data governance platform Collibra acquired Raito, another Brussels-based startup that helps manage data access rights within organizations. Raito, which had raised $4 million, will enhance Collibra's data governance and security features. AMD announced the acquisition of Brium, a stealth startup focused on optimizing AI software, to challenge Nvidia's dominance in AI hardware. The deal size was not disclosed, but it underscores AMD's strategic move to strengthen its AI capabilities. Snowflake, the cloud data platform, is planning to acquire Crunchy Data, a company that helps enterprises build applications using PostgreSQL. The deal, valued around $250 million, will expand Snowflake's data management and analytics capabilities. Scale AI, a data labeling platform, hired the entire team behind Pesto AI, which is shutting down after raising over $8 million to facilitate remote developer recruitment. This move aims to enhance Scale AI's human-in-the-loop data labeling solutions. Video startup Airtime, founded by Evernote's Phil Libin, laid off dozens of employees. The company, now rebranded from mmhmm, had raised nearly $135 million but decided to streamline its workforce and focus on future goals. Indian grocery startup KiranaPro confirmed it suffered a significant data breach last May, resulting in the wiping of all its data. This incident highlights the ongoing cybersecurity challenges faced by fast-scaling startups. HR tech startup Deel filed a lawsuit against rival Rippling, alleging that Rippling hired an employee who impersonated a customer to gain sensitive information. Rippling countered with an amended complaint accusing Deel of corporate espionage. Notable Funding Rounds Defense tech firm Anduril Industries, founded by Palmer Luckey, secured a massive $2.5 billion Series G round, with a $1 billion contribution from Founders Fund. This investment doubles Anduril's valuation to $30.5 billion, reflecting strong confidence in its cutting-edge defense technologies. Anysphere, creators of the AI coding assistant Cursor, raised $900 million at a $9.9 billion valuation. The company claims to have surpassed $500 million in annual recurring revenue, underscoring its rapid growth and market traction. Neuralink, Elon Musk's brain-computer interface startup, closed a $650 million Series E round, reportedly at a pre-money valuation of around $9 billion. The funding will support Neuralink's ongoing research and development of advanced neural interfaces. Singapore-based insurtech company Bolttech completed a $147 million Series C round, bringing its valuation to $2.1 billion. Bolttech specializes in embedded insurance, integrating insurance products seamlessly into digital platforms. Speedata, an Israeli chip startup developing analytics processing units (APUs) to compete with Nvidia's GPUs, raised $44 million in a Series B round. The company aims to accelerate AI and data workloads, positioning itself as a formidable player in the chip market. Irish fintech Nomupay received a $40 million Series C investment from SB Payment Service, a subsidiary of Japanese telecom giant SoftBank Corp. This funding will enable Nomupay to expand its operations, particularly in Asia, and explore potential acquisitions. AI and camera startup Obvio secured $22 million in a Series A round led by Bain Capital Ventures. Obvio uses AI and cameras on stop signs to detect and prevent unsafe driving, aiming to improve road safety. Industry Insights and Trends The venture capital landscape continues to favor AI startups, with North American AI companies attracting $69.7 billion in funding across 1,528 deals between February and May 2025, significantly outpacing Europe ($6.4 billion in 742 deals) and Asia ($3 billion in 515 deals). This data from PitchBook highlights the intense competition and investment interest in AI technologies. Elad Gil, a prominent tech investor, has been early to recognize the potential of AI startups, investing in companies like Perplexity and Harvey. Gil is now shifting his focus to traditional businesses that AI can revolutionize and make more profitable, signaling a broader trend in the application of AI across various industries. Evaluation and Company Profiles The recent acquisitions and funding rounds underscore the growing importance of AI and data security in the tech industry. Companies like IBM and Cellebrite are consolidating their positions by acquiring complementary technologies, while startups such as Anysphere and Speedata are attracting substantial investments due to their innovative approaches and high revenue potential. Anduril's massive funding round and Neuralink's continued investment highlight the burgeoning defense and neuroscience sectors, where AI is expected to play a pivotal role in the coming years. Meanwhile, the layoffs at Airtime and the data breach at KiranaPro serve as cautionary tales, emphasizing the need for robust operational strategies and cybersecurity measures in rapidly evolving markets. Elad Gil's investment strategy reflects a trend towards reinventing traditional industries using AI, indicating that the technology's impact is likely to extend beyond tech-centric sectors. His early bets on AI startups and subsequent focus on traditional businesses illustrate the versatility and transformative potential of AI in creating value and driving innovation. Overall, the week's events demonstrate the competitive and dynamic nature of the startup ecosystem, with significant emphasis on AI, data governance, and international expansion. These developments are shaping the future of technology and business, offering both opportunities and challenges for emerging companies and established players alike.