The artificial intelligence sector continues its rapid expansion, with significant investments and strategic moves shaping the industry. OpenAI reported substantial revenue of $4.3 billion in the first half of 2025, alongside a considerable cash burn of $2.5 billion, ending June with $17.5 billion in cash. Nvidia is a key player in this growth, planning to invest up to $100 billion to support OpenAI's AI workloads and expanding its ecosystem with investments in startups like Nscale and Wayve, as well as a $5 billion investment in Intel. Citi has raised Nvidia's price target, citing strong AI infrastructure growth and its OpenAI partnership. Microsoft is also making substantial commitments, pledging over $30 billion for capital expenditures in fiscal Q1 2026 and an additional $30 billion to the UK over four years, which includes $15 billion for cloud and AI infrastructure featuring 23,000 NVIDIA GPUs. Meanwhile, Tesla is being viewed by Deutsche Bank as a growth opportunity beyond electric vehicles, with its AI initiatives like Full Self-Driving (FSD) and potential autonomous ride-hailing seen as future revenue streams. In the chip manufacturing space, South Korean startup Rebellions has raised $250 million at a $1.4 billion valuation, with strategic investment from Arm Holdings Plc, to mass-produce its AI chips. Amkor Technology is also recognized for its role in AI, providing advanced packaging for AI chips and having a significant US manufacturing presence. Beyond infrastructure and hardware, AI is making inroads into specialized sectors. Eve, an AI assistant for lawyers, has achieved a $1 billion valuation after raising $103 million to enhance legal tools. Estonian startup Sera AI secured €1.5 million in seed funding to expand its AI sales agent internationally, automating prospecting and outreach for B2B sales.
Key Takeaways
- OpenAI generated $4.3 billion in revenue in the first half of 2025, with plans for $13 billion in full-year revenue.
- Nvidia plans to invest up to $100 billion to support OpenAI's AI workloads and has invested $5 billion in Intel.
- Microsoft is investing over $30 billion in capital expenditures for fiscal Q1 2026 and an additional $30 billion in the UK over four years for AI infrastructure.
- South Korean AI chip startup Rebellions raised $250 million at a $1.4 billion valuation, with investment from Arm Holdings Plc.
- Deutsche Bank raised Tesla's price target, highlighting AI initiatives like FSD as key growth drivers.
- Eve, an AI assistant for lawyers, reached a $1 billion valuation after raising $103 million.
- Amkor Technology is a key player in AI chip packaging, with significant manufacturing in the United States.
- Estonian startup Sera AI raised €1.5 million in seed funding to expand its AI sales agent globally.
- Microsoft's UK investment includes $15 billion for cloud and AI infrastructure, featuring 23,000 NVIDIA GPUs.
- Citi raised Nvidia's price target, citing strong AI infrastructure growth and its OpenAI partnership.
AI chip startup Rebellions raises $250 million at $1.4 billion valuation
South Korean AI chip startup Rebellions secured $250 million in Series C funding, reaching a $1.4 billion valuation. The investment round included Arm Holdings Plc as a strategic partner, alongside SoftBank Group Corp.'s Vision Fund and Samsung Electronics Co.'s venture arm. Rebellions plans to use the funds to mass-produce its AI chips, like the ION, and expand its global presence. This funding highlights the growing competition and investor interest in the AI infrastructure market.
Arm invests in Korean AI chip startup Rebellions
Arm, a chip designer backed by SoftBank, has invested in South Korean AI chip startup Rebellions as part of its $250 million Series C funding round, which valued the company at $1.4 billion. This marks Arm's first investment in an Asian startup. Rebellions will use the funds to accelerate mass production of its Rebel-Quad AI chip and expand its product roadmap. The company's chips are designed for energy-efficient AI inference and are already used in data centers globally.
Eve AI startup valued at $1 billion for legal tools
Eve, an AI assistant for lawyers, has raised $103 million in new funding, achieving a $1 billion valuation. The investment, led by Spark Capital, aims to expand AI's role in the legal field by making document review and case management more efficient. Eve's technology helps plaintiff-side law firms, which operate on contingency fees, to handle more cases and improve outcomes. This funding reflects a growing trend of AI adoption in the legal sector, which is estimated to be a $1 trillion market.
Deutsche Bank raises Tesla price target on AI growth potential
Deutsche Bank has increased its price target for Tesla, emphasizing the company's artificial intelligence initiatives as a key growth driver beyond slowing electric vehicle sales. Analysts believe Tesla's AI projects, including Full Self-Driving (FSD) and potential autonomous ride-hailing, could create new high-margin revenue streams. This strategic pivot positions Tesla more like a tech platform, aiming to attract higher valuation multiples. The move comes as Tesla faces increased competition in the EV market and seeks to prove its future growth lies in innovation.
OpenAI reports $4.3 billion revenue in first half of 2025
OpenAI generated approximately $4.3 billion in revenue during the first half of 2025, driven by products like ChatGPT. The company spent $6.7 billion on research and development, resulting in a total cash burn of $2.5 billion, but ended June with $17.5 billion in cash. OpenAI aims for $13 billion in revenue for the full year and is exploring liquidity options for employees. Nvidia plans to invest up to $100 billion to support OpenAI's AI workloads.
Amkor Technology seen as AI and nearshoring investment
Amkor Technology, a semiconductor testing and packaging company, is identified as a strategic investment in both artificial intelligence and nearshoring. The company supplies essential advanced packaging for sophisticated AI chips used in servers and data centers. Amkor is unique for having a significant manufacturing presence in the United States alongside overseas operations. Investors are also watching Nvidia, with Citi raising its price target due to AI infrastructure growth and its deal with OpenAI.
Sera AI raises €1.5 million for AI sales agent
Estonian startup Sera AI has secured €1.5 million in seed funding to expand its AI-powered sales agent internationally. The funding round was led by Maki VC. Sera AI automates prospecting, research, and personalized outreach for B2B sales, aiming to reduce repetitive tasks. The technology is used by tech and manufacturing companies to improve international business development. Sera focuses on precision and qualification over high volume outreach, helping companies secure new partners and generate significant revenue.
Microsoft boosts AI investment with $30 billion for UK infrastructure
Microsoft is accelerating its artificial intelligence investments, committing over $30 billion to capital expenditures in fiscal Q1 2026 and an additional $30 billion to the UK over four years. The UK investment includes $15 billion for cloud and AI infrastructure, such as a supercomputer with 23,000 NVIDIA GPUs, and will support local operations, research, and partnerships. Microsoft is also launching new AI models like MAI-Voice-1, aiming to maintain its lead in the generative AI market amidst growing competition from rivals like Nvidia and Google.
NVIDIA expands AI ecosystem with investments in OpenAI and startups
NVIDIA Corporation is strengthening its AI ecosystem through significant investments, including $100 billion in OpenAI and substantial funding in startups like Nscale and Wayve. The company also invested $5 billion in Intel. These moves highlight NVIDIA's role in providing AI infrastructure and processor access in exchange for equity. With a relatively low P/E ratio compared to peers, NVIDIA is positioned as a key player in the AI market, developing solutions for AI, gaming, and high-performance computing.
Citi raises Nvidia price target on AI growth and OpenAI deal
Citi has raised its price target for Nvidia to $210, citing strong AI infrastructure growth and a significant investment in OpenAI. The investment bank maintains a buy rating, expecting further upside from new products like the Rubin CPX GPU and strategic partnerships. Nvidia's plan to invest up to $100 billion in OpenAI aims to build massive data centers supporting the AI industry. Citi also noted that Nvidia's roadmap is not impacted by this partnership and maintains its commitment to ARM.
Sources
- AI Chip Startup Rebellions Gets Funds at $1.4 Billion Valuation
- Arm Joins $250 Million Funding Round Of Korean AI Chip Startup Rebellions
- Eve Nabs $1 Billion Valuation to Bring AI to Lawyers
- Tesla Gets Deutsche Bank Price Target Bump on AI Bet, as Wall Street Seeks Growth Beyond Slowing EV Sales
- OpenAI posts $4.3 billion revenue in H1 2025 amid massive AI investment
- A semiconductor stock that's both an AI and nearshoring play
- Sera AI raises €1.5 million seed
- Microsoft Accelerates AI Investment to Fend Off Stiff AI Competition
- Recent Investments Expand NVIDIA Corporation (NVDA)’s AI Ecosystem
- Nvidia gets a price target hike from Citi on AI infrastructure growth, OpenAI deal