Enterprise Weekly #501: Capital Expenditure Rising, AI, and More
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It’s Super Bowl weekend hyperscaler earnings week!
While we’ve historically tracked cloud growth across Microsoft, Google, and Amazon (as it continues to be one of the largest revenue drivers for these companies) this week was all eyes on capital expenditure (CapEx).
All three tech titans (plus Meta) are set to increase CapEx by ~44% in 2025—one of the biggest jumps in a decade, adding ~$100B.
This continued growth in CapEx indicates the AI arms race is still gaining momentum, with much of the money going to AI data centers, despite wide-spread anxiety over the impact of DeepSeek R-1, and whether hyperscalers and AI research labs like OpenAI and Anthropic will sufficiently profit from their unprecedented spending sprees.
What could this mean for the future of AI? More innovation.
Easing of AI Infrastructure Constraints: Investments could start alleviating capacity-constraints in compute, energy, and data centers.
The AI Circle of Life: If supply constraints ease, AI services could become cheaper due to increased infrastructure availability which could lead to more startups and enterprises building with AI.
Acceleration of AI Model Training & Inference: Increased CapEx and production-grade services could mean more GPUs, more custom silicon (AWS Trainium, MSFT Maia, Meta MTIA), and better AI infrastructure—fueling faster training cycles for LLMs and multimodal AI.
Tech giants aren’t slowing down, meaning the race will continue reshaping cloud, semiconductors, and software. Expect even more AI-driven M&A, cloud investments, and enterprise adoption as AI capabilities expand.
2025/26 could be a massive inflection point where AI infrastructure catches up to demand, enabling faster, cheaper, and more powerful AI applications across industries. 🚀
📚 Read more news:
TechCrunch: OpenAI Unveils a New ChatGPT Agent for ‘Deep Research’ and thoughts from Sam Altman
📚 Read more (th)reads:
Company: GovWell
Role: Founding Backend Engineer
Technology: Modern Software For Local Government
Funding: $4.5M from Work-Bench, Bienville Capital
🌟 Company of the Week 🌟
DevAI raises $6M led by Emergence Capital
Infrastructure / Dev Tools • Seed • Palo Alto, CA
Co-Founders: Susie Wee (CEO), Edwin Zhang
Astra Security raises $2.7M led by Emergent Ventures
Risk / Security • Seed • Claymont, DE
GetWhys raises $2.8M led by NEXT Frontier Capital
Sales / Marketing • Seed • Boise, ID
LogicStar raises $3M led by Northzone
Infrastructure / Dev Tools • Pre-Seed • Zurich, Switzerland
Pandektes raises $3M led by People Ventures and Interface Capital
Future of Work • Seed • Copenhagen, Denmark
Invary raises $3.5M led by SineWave Ventures, Hyperlink Ventures, and Others
Risk / Security • Seed • Lawrence, KS
Neuralk-AI raises $4M led by Fly Ventures
Data / AI / Machine Learning • Seed • Paris, France
Perspective AI raises $4M led by Village Global, Array Ventures and Others
Sales / Marketing • Seed • Palo, Alto, CA
Converge raises $5.6M led by Uncorrelated Ventures, and General Catalyst
Sales / Marketing • Seed • New York, NY
Warmly raises $6M led by RTP Global
Sales / Marketing • Series A • San Francisco, CA
Lorikeet raised $9M led by Blackbird
Sales / Marketing • Seed • Sydney, Australia
Desteia raises $8M led by Autotech Ventures, Nazca, and Village Global
Future of Work • Seed • New York, NY
Prior Labs raises $9.4M led by Balderton Capital
Data / AI / Machine Learning • Pre-Seed • Freiburg, Germany
Tana raises $14M led by Tola Capital
Collaboration / Productivity • Series A • Palo Alto, CA
GenLogs raises $14.6M led by Venrock and HOF Capital
Future of Work • Series A • Arlington, VA
Cognida.ai raises $15M led by Nexus Venture Partners
Data / AI / Machine Learning • Series A • Chicago, IL
Ivo raises $16M led by Costanoa Ventures
Future of Work • Series A • San Francisco, CA
Atombeam raises $20M led by StartEngine
Data / AI / Machine Learning • Venture • Moraga, CA
Riot raises $30M led by Left Lane Capital
Risk / Security • Series B • San Francisco, CA
7AI raises $36M led by Greylock Partners, Spark Capital, and CRV
Risk / Security • Seed • Boston, MA
Protex AI raises $36M led by Hedosophia
Future of Work • Series B • Dublin, Ireland
Semgrep raises $100M led by Menlo Ventures
Risk / Security • Series D • San Francisco, CA
Solaris raises $145.2M led by SBI Group and Boerse Stuttgart Group
Future of Work • Series G • Berlin, Germany
Riverwood Capital acquires Quicklizard for $52.5M
Sales / Marketing • Private Equity • Tel Aviv, Israel
Sophos acquires Secureworks for $859M
Risk / Security • Acquisition • Atlanta, GA
Worldpay acquires Ravelin for an Undisclosed Amount
Risk / Security • Acquisition • London, UK
Databricks acquires BladeBridge for an Undisclosed Amount
Data / AI / Machine Learning • Acquisition • New York, NY