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Crypto startups rake in 2m as venture capitalists bet on AI plays
artificial-intelligence

Crypto startups rake in 2m as venture capitalists bet on AI plays

Seven crypto startups raised 2M this week, with AI-focused projects dominating funding rounds and reshaping the blockchain landscape.

July 25, 2025
5 min read
Pedro Solimano

Seven crypto startups raised 2M this week, with AI-focused projects dominating funding rounds and reshaping the blockchain landscape.

Crypto startups rake in $92m as venture capitalists bet on AI plays

Seven crypto startups raised a combined $92 million this week, according to DefiLlama. This brings total crypto startup funding in 2025 to $11.1 billion, already 60% of Pitchbook’s $18 billion prediction for the year. Venture capitalists are spreading bets across the crypto space, but one theme dominated this week: artificial intelligence. Half of the week’s biggest raises went to firms building at the intersection of crypto and AI. From decentralized AI networks to training data engines for robots, AI-focused projects hauled in over 60% of this week’s funding rounds. Below are the three biggest rounds of the week:

xTAO — $22.8 million

The biggest winner of the week is xTAO, a Cayman Islands-domiciled company building infrastructure for Bittensor. Bittensor is a fledgling project challenging centralized AI giants like OpenAI and Google. “It was like when I first found Bitcoin and saw the problem that it was trying to solve,” Samaroo previously told DL News. Bittensor is considered “the best shot on goal that we have for decentralized AI.” The company raised $22.8 million in a round backed by Digital Currency Group, Animoca Brands, Arca, Borderless Capital, and FalconX.

Soluna — $20 million

Soluna, a green data center operator powering Bitcoin mining and AI workloads with stranded renewable energy, raised $20 million in new funding. The publicly listed firm (Nasdaq ticker: SLNH) plans to use the capital to expand its software platform and launch new facilities at renewable energy sites. The round was led by Spring Lane Capital. Soluna has earmarked the funds to expand its footprint in Texas, a hub for Bitcoin and AI mining.

Poseidon — $15 million

Andreessen Horowitz (a16z) crypto made its latest bet on AI-meets-Web3 with a $15 million seed round into Poseidon. Built on the Story Protocol, Poseidon is designing a decentralized data layer for training physical AI systems such as robotics and autonomous vehicles. The goal is to curate and license IP-cleared training data through crypto-native incentives and infrastructure. Poseidon “seeks to establish a new economic foundation for the internet,” said Chris Dixon, managing partner at a16z, on X (formerly Twitter) on July 22. An internet “where data creators get fairly compensated for helping AI companies power the next generation of intelligent systems.”
You’re reading the latest installment of The Weekly Raise, our column covering fundraising deals across the crypto and DeFi spaces, powered by DefiLlama_. Pedro Solimano is DL News’ Buenos Aires-based markets correspondent. Got a tip? Email him at psolimano@dlnews.com.
Source: Crypto startups rake in $92m as venture capitalists bet on AI plays on 25 July 2025.

FAQ

What is the significance of cryptocurrency startups raising funds? The funding shows the trust venture capitalists place in these companies to deliver innovative solutions in the crypto and AI space. It's also indicative of the growing interest and investment in these sectors. Why is artificial intelligence a focal point for investment in the crypto sector this week? AI is increasingly integrated into financial systems to create smarter, more efficient models. The fusion of AI and crypto promises revolutionary changes, driving investors to fund such integration ventures. What are the primary sectors where venture capitalists are investing in the crypto industry? Investment is spread across various sectors such as decentralized finance (DeFi), blockchain infrastructure, AI integration, and cryptocurrency exchanges.

Crypto Market's Take

At Crypto Market AI, we are committed to leveraging AI's power and integrating it into our cryptocurrency trading platform. Our AI-powered trading bots use advanced algorithms to assist traders in making more informed and efficient trading decisions. The current wave of investment in AI-integrated crypto startups aligns with our vision of creating smarter financial tools for the global market.

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