Good day. The line between AI and non-AI startups is becoming increasingly blurry, as almost all startups nowadays include artificial-intelligence features. But at least for now, analytics companies track AI separately, which shows the sector’s outsize influence in venture capital.

A new report from Crunchbase is a case in point. Artificial intelligence now receives roughly as much venture funding as all other startup sectors combined, according to data published Tuesday by the data provider.

AI startups globally hauled in $202 billion this year through Sunday, up 77% from 2024’s full-year total, according to Crunchbase. All other startups raised $203 billion through the same period.   

AI hit this funding milestone with remarkable speed. Last year, AI startups attracted 35% of all venture funding. In 2023, AI startups raised 21% of venture funding.

Crunchbase included AI infrastructure, foundation labs and applications in its AI data.

Foundation models accounted for about $80 billion of this year’s AI funding, while the rest of the AI sector garnered $122 billion.

The rise of agents and AI-powered software applications this year helped propel AI’s funding surge. That shows no signs of slowing down. On Tuesday, for instance, Fluency, a Burlington Vt.-based digital advertising AI system, said it raised a $40 million Series A from Integrity Growth Partners.

Founded in 2017, Fluency offers a platform where companies can manage and automate their digital advertising processes.

And now on to the news...

Megaround momentum. Databricks is raising over $4 billion in Series L funding that would value the data analytics and artificial intelligence software company at $134 billion, an increase of 34% from its last funding round over the summer.

• The San Francisco-based company also said it crossed $4.8 billion in annual revenue run rate at the end of October, up from the $4 billion it announced a few months ago. Databricks makes money by renting out analytics capabilities, AI and other cloud-based software that taps AI-ready data for building enterprise tech systems.
   
• Databricks’ latest funding is led by Insight Partners, Fidelity Management & Research Co. and J.P. Morgan Asset Management, with additional participation from Andreessen Horowitz.

CoreWeave, the largest of a new breed of companies driving the artificial-intelligence boom, has watched $33 billion of value vaporize in six weeks.

• The share-price plunge of 46% comes as investors worry about a possible AI bubble, the fallout from a failed merger and public criticism from high-profile short seller Jim Chanos, known for predicting the collapse of Enron.
   
• But some of the high-tech company’s biggest problems began with a very low-tech nuisance: unexpectedly turbulent rainstorms in North Texas.

Blackstone is leading a $400 million investment in data-security firm Cyera that values the New York-based company at $9 billion, according to people familiar with the matter. Cyera is among a crop of cybersecurity startups leveraging artificial intelligence to protect companies from new security vulnerabilities introduced by AI. The startup, founded in 2021 by former Israeli Defence Forces military intelligence officers Yotam Segev and Tamar Bar-Ilan, raised funding at a $6 billion valuation in June.

People

Measurabl, a sustainability data platform for real estate, appointed Maureen Waters as chief executive. She replaces Matt Ellis, who will transition to executive chairman and member of the board.

Versana, an enterprise data and technology company focusing on the syndicated loan and private-credit markets, named George Nunn as chief operating officer. He succeeds founding COO Bruce Manson.

Harness, a San Francisco-based AI software delivery platform, scored $240 million in Series E funding, including a $200 million investment led by Goldman Sachs Alternatives.

RedotPay, a Hong Kong-headquartered stablecoin-based payments startup, closed a $107 million Series B round. Goodwater Capital led the investment, which included participation from Pantera Capital, Blockchain Capital and Circle Ventures.

Last Energy, an Austin, Texas-based nuclear technology startup, collected more than $100 million in Series C funding. Astera Institute led the investment, which included additional support from Galaxy Interactive and others.

Adaptive Security, a New York-based startup helping to protect organizations from AI-powered attacks, secured $81 million in Series B financing led by Bain Capital Ventures.

Vital Lyfe, a Hawthorne, Calif.-based startup building portable, water-making systems, landed a $24 million investment, including over $18 million in seed funding. Interlagos and General Catalyst led the round, which included participation from Generational Partners, Space VC and others.

DataLane, a New York-based startup building an identity graph for local businesses, grabbed a $22.5 million Series A round led by Amplify Partners.

Sequence, a revenue platform for finance teams, nabbed $20 million in Series A funding. Led by 645 Ventures, the round included contributions from Andreessen Horowitz, Firstminute Capital, Passion Capital and others. The company is based in New York and London.

Verisoul, an Austin, Texas-based fraud-detection platform, fetched $8.8 million in Series A funding. High Alpha led the round, which saw participation from Lookout Ventures, Bitkraft and others.

ZeroPhase, a startup building a communication layer for unmanned defense systems, was seeded with a €5.8 million investment led by BlueYard Capital.

Mobius Materials, a Richmond, Va.-based B2B marketplace for hardware manufacturers, was seeded with a $3 million investment led by Spero Ventures.

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This newsletter was compiled by Yuliya Chernova and Zachary Cole.

WSJ Pro Venture Capital is a premium service of The Wall Street Journal. We cover venture capital and the global startup ecosystem. Share your tips, comments and questions: vcnews@wsj.com

The Team: Matthew Strozier, Yuliya Chernova, Brian Gormley and Marc Vartabedian.

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