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Stephen Van Tran
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Today’s venture capital landscape sees unprecedented funding rounds and strategic partnerships reshaping the AI industry. Perplexity reaches a $20 billion valuation just months after its last raise, while OpenAI and Oracle sign one of the largest cloud computing deals in history. Meanwhile, Amazon enters the smart glasses race and Microsoft diversifies its AI strategy beyond OpenAI.

Replit Raises $250M at $3B Valuation

Replit, the agentic AI software creation platform, has raised $250 million in funding at a $3 billion valuation. The round was led by Prysm Capital with participation from Amex Ventures, Google’s AI Futures Fund, Y Combinator, Craft, Andreessen Horowitz, Coatue, and Paul Graham. The funding underscores growing investor interest in AI-powered development tools that can autonomously create software applications.

Perplexity Reaches $20B Valuation

AI-powered search startup Perplexity has reportedly raised $200 million at a $20 billion valuation, according to The Information. The round follows a July raise of $100M at an $18B valuation, bringing total funding to $1.5 billion in just three years. With annual recurring revenue nearing $200 million, Perplexity continues positioning itself as a serious competitor to Google, offering conversational, AI-driven search results.

Klarna’s IPO Raises $1.4B with Sequoia as Biggest Winner

Swedish fintech giant Klarna debuted on the NYSE at $40 per share, above range, valuing the company at $15 billion. The stock opened at $52 before settling near $46, with only 5 million of the 34.3 million shares sold coming from Klarna itself. Sequoia Capital, holding a 23% stake and led by early backer Michael Moritz, emerged as the biggest beneficiary, while CEO Sebastian Siemiatkowski retained his 7.5% stake worth $1.02 billion.

OpenAI and Oracle Sign Historic $300B Computing Deal

OpenAI will purchase $300 billion in compute power from Oracle over five years starting in 2027, making it one of the largest cloud contracts ever signed. The deal expands OpenAI’s multi-cloud strategy beyond its existing relationships with Microsoft Azure and Google Cloud. This partnership ties into the $500 billion Stargate Project with SoftBank and Oracle to build domestic data centers, reflecting OpenAI’s insatiable demand for computing resources.

Amazon Develops Consumer AR Glasses to Rival Meta

Amazon is reportedly developing smart glasses under two projects: a consumer device codenamed ‘Jayhawk’ and an enterprise model called ‘Amelia’ for its logistics network. The consumer-focused Jayhawk glasses will feature a full-color display for one eye and deep Alexa integration for shopping, with a planned launch between late 2026 and early 2027. The Amelia model targets Amazon’s delivery drivers to boost efficiency, aiming for Q2 2026 deployment.

Microsoft Now Buys AI from OpenAI Rival Anthropic

Microsoft will pay for Anthropic’s AI to help power features in Office 365 apps like Word and PowerPoint, ending its sole reliance on OpenAI. Company leaders reportedly believe Anthropic’s latest model, Claude Sonnet 4, performs better than OpenAI’s for certain functions like creating aesthetically pleasing PowerPoint presentations. This diversification comes as OpenAI pursues independence by developing its own AI chips and a jobs platform that could compete with Microsoft’s LinkedIn.

Neuralink announced that 12 patients worldwide now have its brain implants, up from 7 in June, with a combined 15,000+ hours of use across 2,000 days. The company is expanding globally with planned clinical studies in the UK through University College London Hospitals and Newcastle Hospitals. Having raised $650M in June, Neuralink aims to help people with severe paralysis control digital and physical tools via thought.

Arm Launches AI-Optimized Mobile Chip Designs

Arm unveiled Lumex, its next-generation chip designs optimized for running large AI models directly on smartphones and wearables without cloud computing. The Lumex lineup spans four variants, from energy-efficient designs for smartwatches to high-performance versions for flagship smartphones. Built for TSMC’s 3-nanometer process, Lumex reflects Arm’s broader push to expand revenue in smartphones, data centers, and potentially its own chipmaking efforts.

Apple Unveils iPhone 17 and Ultra-Thin iPhone Air

Apple introduced the ultra-thin iPhone Air with 27 hours of battery life, while the iPhone 17 Pro gets an A19 Pro chip and a camera “plateau” with three 48-megapixel Fusion cameras. The base iPhone 17 features a 6.3-inch display with ProMotion and an 18MP Center Stage camera with auto-reframing software. The new AirPods Pro 3 offer four times better active noise cancellation, Live Translate support, and up to 8 hours of battery life.

Today’s developments highlight the accelerating pace of AI infrastructure investments and the intensifying competition among tech giants for AI dominance. With record valuations, historic compute deals, and new hardware innovations, the industry continues its rapid transformation as companies race to capture the AI opportunity.