Venture capital is flowing at a record pace into artificial intelligence, defense and energy storage, with San Francisco-based Databricks anchoring the week with another $5 billion raise. The funding spree reflects a broader market shift toward infrastructure, security and specialized AI tools as investors place large bets on companies that serve government and enterprise needs.

What You Need to Know

Want to understand where the biggest venture dollars are going this week? Databricks raised its valuation to $190 billion, up from $134 billion in December 2025. A new AI neolab called River AI secured $1.1 billion for reinforcement learning. Defense drone maker Neros Technologies raised $250 million, and energy storage company Form Energy took in $750 million. Check the full list of the biggest funding rounds below. The U.S remains the dominant market for megadeals, with investors prioritizing AI infrastructure and defense.

Record Fundings Across Key Sectors

Databricks led the pack with a $5 billion round from Coatue, Blackstone, MGX, T. Rowe Price and Sixth Street Growth. The data platform company now reports a $7 billion revenue run rate with more than 80% year-over-year growth. This round comes just eight months after its previous $5 billion raise and brings total funding to roughly $25 billion since 2013.

River AI, a Palo Alto-based neolab founded this year, raised $1.1 billion across seed and Series A rounds backed by AMP PBC, General Catalyst, Nvidia and AMD Ventures. The company focuses on reinforcement learning to build personalized AI systems that give end users direct control over training data.

  • Databricks: $5 billion for data and AI infrastructure, valuation hits $190 billion.
  • River AI: $1.1 billion for AI reinforcement learning, backed by Nvidia and AMD Ventures.
  • Form Energy: $750 million for long-duration grid batteries, led by T. Rowe Price.
  • Neros Technologies: $250 million for drone defense systems, with contracts from the U.S military.

Neros Technologies, a Los Angeles-based defense startup, raised its Series C to scale drone interceptor production. The company plans to build 1 million drones annually by 2028 and already serves the U.S military and allied nations. CodeRabbit also raised $143 million for AI-powered code review, a category that bridges the gap between automated coding and production-ready software.

Why This Matters

The concentration of capital in AI infrastructure, defense and energy storage signals a lasting shift in venture priorities. Investors are moving away from consumer-focused apps and toward foundational technology that powers government operations, enterprise efficiency and grid reliability. For startups, the bar for raising large rounds is rising: companies must demonstrate clear revenue growth or strategic government contracts to secure the biggest checks. The Databricks raise alone shows that data platform companies can command top valuations even as the broader funding environment remains selective. For industries reliant on code quality and defense readiness, these investments will accelerate deployment but also raise questions about oversight and market concentration.

The Shifting Landscape of Venture Capital

The week’s biggest funding rounds highlight a recurring theme: deep tech and defense are commanding premium valuations. The San Francisco-based Databricks has raised capital at a 42% premium over its December valuation, reflecting investor confidence in its revenue trajectory. Meanwhile, defense drones and AI code review tools are emerging as critical categories. Rowe Price participated in multiple rounds, including Form Energy and Databricks, indicating a strategic bet on both climate infrastructure and data analytics. The U.S venture ecosystem continues to attract global investors, with MGX from the Middle East and European firms like Atomico joining U.S.-based syndicates.

Want to track these trends? The data shows that investors are not merely diversifying; they are doubling down on sectors with clear real-world impact. As the year progresses, expect defense, energy storage and personalized AI to attract even larger allocations.