Modal Labs, an AI inference infrastructure startup, is in early discussions with venture capital firms about a new financing round that could value the company at roughly $2.5 billion. If completed, the round would more than double the $1.1 billion valuation reported less than five months earlier. The company’s annualized revenue run rate is about $50 million. Co‑founder and CEO Erik Bernhardsson said the conversations are general and not an active fundraising effort. Existing backers include Lux Capital and Redpoint Ventures, while General Catalyst is reportedly considering leading the round. Read more →

Naveen Rao, former head of AI at Databricks, has closed a $475 million seed financing for his new venture Unconventional AI, valuing the company at $4.5 billion. The round was led by Andreessen Horowitz and Lightspeed Ventures, with Lux Capital and DCVC also participating. Rao’s aim is to build an energy‑efficient computer for artificial intelligence, a goal he describes as “as efficient as biology.” The funding represents the first installment toward a potential $1 billion total raise. Rao’s prior successes include MosaicML, acquired by Databricks for $1.3 billion, and Nervana Systems, acquired by Intel for more than $400 million. Read more →

Tokyo‑based Sakana AI announced a ¥20 billion (approximately $135 million) Series B financing round that values the startup at $2.65 billion. Led by a mix of Japanese financial institutions and global venture firms, the round will fund further research and development of generative AI models optimized for the Japanese language, expand engineering and sales teams, and broaden the company’s enterprise reach beyond finance into industrial, manufacturing, government, defense and intelligence sectors. Founder‑CEO David Ha highlighted plans to pursue strategic partnerships, investments and acquisitions to sustain long‑term growth. Read more →

Bilal Abu‑Ghazaleh, a former Scale AI executive, has founded 1001 AI to bring an AI‑native operating system to high‑stakes sectors such as aviation, logistics, construction and oil and gas in the Middle East and North Africa. The two‑month‑old startup raised a $9 million seed round led by CIV, General Catalyst and Lux Capital, with participation from a roster of global and regional angels. Abu‑Ghazaleh says the platform will cut inefficiencies worth more than $10 billion in the Gulf alone by automating decision‑making and orchestrating real‑time operations. Early deployments are slated for construction projects by the end of the year, with the company eyeing broader roll‑outs across the region’s megaprojects. Read more →