It’s no surprise that artificial intelligence (AI) was a key theme throughout 2024. Globally, ChatGPT and generative AI tools were used by 59% of men and 51% of women[1] and the industry brought in $131.5B in global venture capital investment in 2024, more than a third of all funding.[2] So where does AI stand in 2025, who are the major players, and what should investors keep an eye on as the year progresses?

State of AI 2025

AI has been one of the most transformative technologies of the 21st century, and by 2025, its impact is set to deepen across industries, economies, and daily life. From revolutionizing healthcare and finance to reshaping how we work and interact, AI is no longer a futuristic concept—it’s a present-day reality. For private market investors, understanding the state of AI in 2025 can be important to identify opportunities and stay ahead in a rapidly evolving landscape.

The Major Players

As of 2025, the AI industry is dominated by a mix of established tech giants, innovative startups, and specialized AI firms. These players are helping to drive innovation, setting industry standards, and shaping the future of AI applications.

* denotes MicroVentures portfolio company

DeepSeek

Founded in 2023, DeepSeek was a quiet player in the AI field before releasing its AI chatbot in January 2025. It quickly overtook ChatGPT as the top-rated free application on the Apple App Store in the U.S. DeepSeek claims to perform on par or better than industry-leading AI chatbots for a fraction of the cost.[3] The emergence of DeepSeek has caused quite a stir among other players, and it could be interesting to see if it’s customer adoption continues, potentially leaving DeepSeek as the new leader in the field.

*OpenAI

OpenAI has been a primary leader in generative AI, continuing to land itself in the top spot of AI chatbots and setting the record for the fastest-growing user base in February 2023 before being dethroned by Threads in July 2023. ChatGPT, its AI chatbot, has more than 300M weekly active users as of January 2025 and runs on its fourth iteration of AI models, GPT-4. One of the most recognizable AI companies, OpenAI and ChatGPT have solidified their place in AI history and it could be interesting to see what new models are released and if OpenAI can keep up with the market share it has captured.

*Anthropic

With a specific focus on AI safety and alignment, Anthropic has also been key player in developing AI systems that are both powerful and ethical. Its Claude 3 Opus model was the first chatbot to outperform OpenAI’s Chat GPT-4 Turbo on Chatbot Arena in March 2024, a popular AI language model leaderboard before being dethroned. It was anticipated to generate $1B in revenue for 2024[4] and secured new investments from Amazon in November 2024. Investors may want to keep an eye on Anthropic to see how those funds are deployed in 2025 and what could come next.

*xAI

Elon Musk’s xAI has also been a major player in the AI field, developing its own AI chatbot, Grok. It opened the Colossus supercomputer in September 2024, reportedly one of the world’s most powerful AI training systems. Currently utilizing 100k NVIDIA GPUs, Musk has stated his intentions to increase Colossus’ GPUs to 1M. Will that happen in 2025? Only time will tell.

*Cerebras

While not having an AI chatbot, Cerebras has played a key role in building the infrastructure needed to train AI models. Operating in the semiconductors field, Cerebras designs processors for training and inference, creating systems that power, cool, and provide data for these processors. Generating $69.8M in revenue in Q2 2024, Cerebras filed for an IPO in September 2024 that could come this year.[5]

*SambaNova

SambaNova is another key player operating on the hardware side of AI. With its SN40L AI chips and large language model Samba-1, SambaNova reports itself as being the first to introduce enterprise-grade GPT AI-powered language models. Not as flashy as other AI companies and operating a bit more quietly in the background, SambaNova could be a company to keep an eye on in 2025.

*Groq

Groq has emerged as a notable player in the AI landscape, particularly in the realm of AI hardware and infrastructure. Founded by former Google engineers, Groq has focused on developing high-performance AI accelerators designed to handle the massive computational demands of modern AI models. As of January 2025, 801k+ developers are using GroqCloud™ since its February 2024 launch to create AI applications for models from Meta, OpenAI, Google, and others.

Microsoft

With its partnership with OpenAI (creators of ChatGPT), Microsoft has solidified its position in the AI race. In 2025, expect Microsoft to double down on AI-powered productivity tools, enterprise solutions, and its Azure AI platform.

Expected Moves in the AI Industry in 2025

As the AI industry matures, several key developments are expected to shape its trajectory in 2025:

1. Consolidation and Partnerships

The AI industry is likely to see increased consolidation as larger companies acquire startups to bolster their AI capabilities. Additionally, strategic partnerships between tech giants and AI-first companies may become more common, enabling faster innovation and market expansion.

2. Regulatory Scrutiny

As AI becomes more pervasive, governments and regulatory bodies are stepping up their oversight. President Trump signed an executive order in January 2025 promising to advance AI innovation and providing a commitment to sustaining and enhancing America’s dominance as a key AI player. As the year progresses, many are watching to see how the executive order and the Trump administration interacts with the major AI players and what policies are put in place to protect people while not hindering AI innovation.

3. AI Democratization

The democratization of AI tools and platforms is also expected to accelerate in 2025, enabling smaller businesses and individuals to leverage AI without requiring extensive technical expertise. Open-source AI models and no-code AI platforms could also play a significant role in this trend.

4. AI in Healthcare

AI’s impact on healthcare is anticipated to grow in 2025, with advancements in drug discovery, personalized medicine, and diagnostic tools. Companies that can demonstrate real-world efficacy and regulatory approval for their AI-driven healthcare solutions could provide some opportunities.

5. AI and Climate Change

AI may play a crucial role in addressing climate change in 2025, with applications in energy optimization, carbon capture, and climate modeling. Investors may want to keep an eye on startups and projects that combine AI with sustainability goals

Trends Private Market Investors Should Consider

For private market investors, the AI industry can offer opportunities, but it also comes with risks. Here are some key trends to consider in 2025:

1. Vertical AI Solutions

Horizontal AI platforms like the chatbots mentioned above have garnered significant attention. However, vertical AI solutions tailored to specific industries (e.g., healthcare, finance, manufacturing) may be poised for growth. Investors could consider looking for companies that demonstrate deep domain expertise and clear use cases for their AI solutions.

2. AI Infrastructure

As AI models become more complex, the demand for robust AI infrastructure—including hardware, software, and cloud services—is expected to continue to rise. Companies that provide AI infrastructure, such as NVIDIA and cloud providers, could potentially see sustained growth.

3. AI Ethics and Governance

With increasing regulatory scrutiny, companies that prioritize AI ethics and governance may be better positioned for long-term success. Investors could consider researching startups that have strong ethical frameworks and transparent AI practices.

4. AI in Emerging Markets

While much of the AI innovation has been concentrated in developed markets, emerging markets are beginning to adopt AI at scale. Investors may want to explore opportunities in regions where AI can help drive economic growth and address local challenges.

Final Thoughts

The state of AI in 2025 is one of rapid growth, innovation, and transformation. Major players are driving the industry forward while startups and emerging companies are pushing the boundaries of what’s possible with AI. For private market investors, the AI industry may offer potential, but it also requires careful consideration of trends, risks, and opportunities.

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Want to learn more about artificial intelligence? Check out the following MicroVentures blogs to learn more:

[1] https://www.aiprm.com/generative-ai-statistics/

[2] https://pitchbook.com/news/articles/ai-startups-grabbed-a-third-of-global-vc-dollars-in-2024

[3] https://www.reuters.com/technology/artificial-intelligence/what-is-deepseek-why-is-it-disrupting-ai-sector-2025-01-27/

[4] https://www.pymnts.com/artificial-intelligence-2/2024/anthropic-revenue-reportedly-set-to-jump-to-1-billion-this-year/

[5] https://www.sec.gov/Archives/edgar/data/2021728/000162828024041596/cerebras-sx1.htm

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The information presented here is for general informational purposes only and is not intended to be, nor should it be construed or used as, comprehensive offering documentation for any security, investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest, directly or indirectly, in any company. Investing in both early-stage and later-stage companies carries a high degree of risk. A loss of an investor’s entire investment is possible, and no profit may be realized. Investors should be aware that these types of investments are illiquid and should anticipate holding until an exit occurs.

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