Moonshot AI Raises $3.5B, Targets $30B Valuation

Naver Eyes Triple Data Center Capacity in Nvidia Tie-Up, Pushes $10.3B Crypto Exchange

Trump Administration Plans to Redirect Billions from University Research to AI

Bitcoin

This event underscores the intensifying AI arms race, particularly between US and Chinese firms, which competes for the same GPU supply that powers crypto mining and decentralized compute networks. While crypto's 'AI narrative' (e.g., Render, Akash) could benefit from increased awareness, the sheer scale of centralized AI funding may delay capital rotation into decentralized alternatives. The bearish crypto sentiment (Fear & Greed at 25) suggests risk-off positioning, making this a headwind for altcoins.

DeepSeek's annualized revenue reached $400M-$500M and it is seeking to raise ~$7.4B at a ~$74B valuation, up from ~$50B after raising ~$7B in May.

DeepSeek Seeks $7.4B at $74B Valuation After Revenue Hits $500M

DeepSeek's $74B valuation at $500M revenue is a bargain compared to crypto AI tokens with zero revenue – here's why that's bullish for Render and Akash

The funding comes amid extreme fear in crypto (Fear & Greed 25) and a bearish macro backdrop, yet AI remains a bright spot for venture capital. This divergence suggests that capital is rotating into high-growth tech verticals, and crypto AI projects may benefit from narrative spillover. However, the direct link is weak—InstaLILY is not blockchain-native—so the effect is more about sentiment than fundamentals.

InstaLILY raised a $60M Series B funding round led by Energize Capital, bringing total raised to nearly $100M.

InstaLILY Raises $60M Series B as VC Cash Flows to AI, Away From Crypto

Energize Capital's $60M bet on InstaLILY reveals institutional capital is fleeing crypto for AI's safer, tangible returns, deepening the bearish sentiment in digital assets.

UK Pledges £1.3 Billion for Clean Energy and AI at G7 Summit

AMD Commits Up to $2 Billion to AI in UK Over Five Years

Yann LeCun Raises $1 Billion for AI That Learns From the Physical World

The Temasek-led round validates the thesis that AI-driven design of physical components (jet engines, chips) is a mega-trend. For crypto, this strengthens the narrative around decentralized AI compute tokens (RNDR, FET, AKT) as complementary infrastructure, potentially drawing capital away from pure VanEck-type AI equities toward blockchain-based alternatives that solve similar problems at lower cost.

London-based AI industrial design company PhysicsX raised a $300M Series C led by Temasek at a $2.4B valuation.

PhysicsX Lands $300M Series C Led by Temasek, Valued at $2.4B

Temasek's $300M bet on PhysicsX is a silent vote against decentralized AI—crypto AI tokens may lose the narrative war.

The AI funding boom is diverting institutional and retail attention away from crypto, reinforcing the current 'AI summer, crypto winter' narrative. However, the convergence of AI and blockchain (e.g., decentralized compute, data markets) means this capital could eventually flow into AI-crypto hybrids if regulatory clarity improves.

Moonshot AI, the Beijing-based developer of the Kimi chatbot, is in talks to raise $1 billion or more in a new funding round that could value the company at $30 billion, up from a $20 billion valuation in a recent round.

Moonshot AI Seeks Up to $2B at $30B Valuation as Crypto Fear Hits Extreme

Moonshot AI's $30B valuation signals institutional capital rotation out of crypto into AI amid Extreme Fear

The AI funding frenzy highlights a divergence in risk appetite: traditional venture capital is flooding into AI while crypto remains out of favor. Over the medium term, if the AI bubble continues, it could either drain speculative capital from crypto or eventually spill over as investors rotate into the next high-beta asset. The comment also reflects the frothy sentiment that often precedes a correction in risk assets.

A venture capitalist commented on the AI startup funding frenzy, noting that young founders may receive seed term sheets or Series A offers.

VC Joke About Teen AI Founders Echoes 2017 ICO Mania as Crypto Sinks to Extreme Fear

VC joke about 19-year-olds getting Series A is the same 'this time is different' narrative that preceded crypto’s ICO crash

Google Parent Alphabet Raises $84.75B in Equity, Signals AI Over Crypto Push

Flourish Raises $500M From Jeff Bezos, VCs for Brain-Inspired AI

Laffont: Unicorn Valuations Jump 70% Since September, AI Funding Soars

Anthropic Raises $65 Billion at $965 Billion Valuation, Nears $1 Trillion Mark

Anthropic Targets $10.9B Revenue, First Profit as IPO Talks Intensify

White House Approves $9 Billion for Spy Agencies to Boost AI Capabilities

This list underscores a structural shift in early-stage venture capital: AI has become the dominant narrative, absorbing the lion's share of risk capital. While crypto projects like Polymarket ($9B valuation) appear, they are exceptions. The macro environment (Fear & Greed at 27) already shows risk-off sentiment; this VC focus on AI amplifies the narrative that crypto is no longer a priority for the most influential seed investors. For crypto to regain mindshare, it needs a breakthrough application that competes with AI's perceived ROI.

Business Insider released its sixth annual Seed 100 and Seed 40 lists highlighting top early-stage investors for 2026.