In the AI sector, several significant developments are unfolding. UK AI startups have secured a record $2.4 billion in venture capital in the first half of 2025, constituting 30% of all UK venture capital investments, with Synthesia, ElevenLabs, and Isomorphic Labs among the top recipients. Meanwhile, Surge AI, founded by ex-Google and Meta engineer Edwin Chen, is planning a capital raise of up to $1 billion, seeking a valuation exceeding $15 billion after its revenue surpassed $1 billion last year, outperforming Scale AI. Amazon's AI business growth has led an analyst to raise the company's stock price target to $235, though supply chain issues, particularly with motherboards, are posing limitations. The delay of Microsoft's new Maia AI chip could potentially benefit Amazon Web Services (AWS). Elsewhere, AI startup Cluely, founded by 21-year-old Ivy Liu, has garnered $15 million in funding led by Andreessen Horowitz, employing a unique strategy of prioritizing attention-grabbing content. Beyond Nvidia, Taiwan Semiconductor (TSMC) and C3.Ai are emerging as key players in the AI stock market. TSMC manufactures essential chips for AI hardware, while C3.Ai provides an AI platform for businesses. KeyBanc analyst Brandon Nispel is weighing Super Micro Computer (SMCI) and Arista (ANET) as top AI infrastructure stocks, noting Super Micro's increased competition and cash flow challenges. Salesforce CEO Marc Benioff claims AI now handles 30% to 50% of the company's work, though investors remain skeptical. Sam Altman, CEO of OpenAI, highlights the public's trust in ChatGPT, despite AI's potential to fabricate information. Finally, indie rock band Deerhoof has quit Spotify due to its founder's investment in AI battle tech, protesting war profiteering.
Key Takeaways
- UK AI startups raised a record $2.4 billion in venture capital in the first half of 2025, representing 30% of all UK venture capital.
- Surge AI, founded by an ex-Google and Meta engineer, plans to raise up to $1 billion, targeting a valuation over $15 billion.
- Amazon's AI growth prompted an analyst to increase its stock price target to $235, but supply chain issues are hindering further expansion.
- Cluely, an AI startup founded by Ivy Liu, secured $15 million in funding from Andreessen Horowitz, focusing on attention-grabbing content.
- Taiwan Semiconductor (TSMC) and C3.Ai are identified as rising stars in the AI stock market, beyond Nvidia.
- KeyBanc is evaluating Super Micro Computer (SMCI) and Arista (ANET) as leading AI infrastructure stocks.
- Salesforce CEO Marc Benioff claims AI handles 30% to 50% of the company's workload.
- OpenAI CEO Sam Altman acknowledges that people trust ChatGPT, despite its potential to generate inaccurate information.
- Deerhoof left Spotify due to the founder's investment in AI battle tech, protesting war profiteering.
- Microsoft's Maia AI chip is delayed, potentially benefiting Amazon Web Services (AWS).
UK AI Startups See Record Venture Capital Funding in 2025
UK AI startups raised $2.4 billion in venture capital in the first half of 2025. This is the highest share of VC investment ever for the sector, making up 30% of all UK venture capital. Top recipients include Synthesia, ElevenLabs, and Isomorphic Labs. The UK's innovation economy remains strong, attracting significant capital and leading Europe in tech investment.
UK AI Investment Reaches Record High in First Half of 2025
Artificial intelligence startups in the UK received $2.4 billion in venture capital funding in the first half of 2025. This is a record 30% of all UK venture capital raised. Top companies include Isomorphic Labs, Synthesia, and Orca AI. The UK raised $8 billion in venture capital, leading Europe. Health and fintech are also leading sectors, each securing $2.3 billion in funding.
Amazon's AI Growth Spurs Analyst to Boost Stock Price Target
An analyst raised Amazon's stock price target to $235 due to the growth of its AI business. Amazon's CEO says their AI business is growing fast, but they need more capacity. Supply chain issues, especially with motherboards, are limiting growth. Microsoft's new Maia AI chip is delayed, potentially benefiting Amazon Web Services (AWS).
AI Startup Cluely's Attention-Grabbing Strategy Pays Off With $15M Investment
AI startup Cluely, founded by 21-year-old Ivy Liu, secured $15 million in funding led by Andreessen Horowitz. Cluely's strategy focuses on creating attention-grabbing content before launching its product. The company turns a person’s screen into an invisible assistant. CEO Roy Chung only hires engineers or influencers. Some see Cluely's approach as risky, but others believe attention is key in a crowded market.
Surge AI Eyes $1 Billion Capital Raise Amid High Demand
Surge AI, a data-labeling company founded by ex-Google and Meta engineer Edwin Chen, plans to raise up to $1 billion. The company is seeking a valuation over $15 billion. Surge AI's revenue exceeded $1 billion last year, surpassing Scale AI. Surge AI is known for its high-precision RLHF datasets and serves major AI labs like Google, OpenAI, and Anthropic.
Beyond Nvidia Two Rising Stars in the AI Stock Market
While Nvidia is a key player in AI, Taiwan Semiconductor (TSMC) and C3.Ai are also rising stars. TSMC manufactures chips for Nvidia, Apple, and AMD, essential for AI hardware. C3.Ai provides a platform for businesses to use AI, with customers like Exxon Mobil and U.S. Steel. Analysts predict TSMC's earnings will rise, and C3.Ai's revenue is also expected to increase.
KeyBanc Picks Top AI Infrastructure Stock Super Micro Computer or Arista
KeyBanc analyst Brandon Nispel compared Super Micro Computer (SMCI) and Arista (ANET) to determine the superior AI infrastructure stock. AI growth drives demand for servers, networking, and cloud software. Nispel noted Super Micro's increased competition and difficulties in generating free cash flow. He gave Super Micro a Sector Weight (Neutral) rating. Nispel did not provide details for Arista.
Salesforce CEO Claims AI Handles Up to Half of Company's Work
Salesforce CEO Marc Benioff claims AI now does 30% to 50% of the company's work. He expects financials to improve significantly. Salesforce's recent sales growth was only 8%. Investors seem skeptical, as the stock has fallen over 18% this year. Analysts will be looking for a strong top or bottom line when Salesforce reports earnings.
Top 10 AI Stocks Trending Now Based on News and Ratings
Sam Altman, CEO of OpenAI, notes that people trust ChatGPT a lot, even though AI can make up information. Skyworks Solutions and Jabil Inc are among the trending AI stocks. Mizuho analyst Vijay Rakesh raised the price target on Skyworks Solutions due to growing AI demand. Stifel analyst Ruben Roy resumed coverage on Jabil Inc with a Buy rating, citing its exposure to AI infrastructure.
Deerhoof Quits Spotify Over AI Battle Tech Investment
Indie rock band Deerhoof left Spotify because founder Daniel Ek invested in Helsing, a German defense group making AI and drones. The band opposes war profiteering and AI battle tech. They made about $1,000 per member per year from Spotify. Deerhoof's drummer, Greg Saunier, said they didn't want their music funding global annihilation. The band hopes to inspire a movement against Spotify.
Sources
- AI drives record share of UK venture capital investment
- AI Drives Record Share of UK Venture Capital Investment in 2025
- Analyst reboots Amazon stock price target on AI growth
- What AI startup Cluely gets — and ad tech forgets
- Surge AI Prepares $1B Capital Raise as Demand for Premium AI Training Data Surges
- AI Isn’t Just About Nvidia: 2 Rising Stars in the Artificial Intelligence Race
- SMCI or Arista: KeyBanc Chooses the Superior AI Infrastructure Stock
- This Tech Giant Now Claims Artificial Intelligence Is Doing Up to 50% of Its Work
- 10 Trending AI Stocks on News and Ratings
- Deerhoof did not want its music ‘funding AI battle tech’ — so it ditched Spotify