AI startups draw strong Q3 funding as investors bet on generative applications

AI-focused startups continued attracting heavy venture inflows in Q3 2025, with cumulative funding rising 28% quarter-on-quarter, underscoring sustained investor conviction in generative AI tools and automation platforms. Venture capital firms led by Sequoia, Lightspeed, and Accel deployed fresh capital into enterprise software, model optimization, and AI infrastructure ventures. Analysts said valuations remain resilient despite broader tech correction, driven by rapid enterprise adoption and cloud integrations. Investors see deep-tech innovation in India and the U.S. as key drivers shaping the next phase of global AI-led productivity growth.