Agentic AI startups saw significant developments this week, with major players advancing technology and new innovators emerging globally.

MarketsandMarkets highlighted Leena AI as a standout in its 2025 AI Agents report. The company's Autonomous Agent platform transforms HR, IT, and finance services by automating workflows and enabling employee self-service. Impressively, it reduces support ticket volume by up to 70% through seamless integration with enterprise systems. Leena AI earned recognition in Gartner's Hype Cycle for IT Service Management, cementing its role in digital workplace efficiency.

xAI (New York, USA) made waves by cancelling Grok 3.5 and announcing Grok-4 for July release. Elon Musk's startup leverages real-time social data from platform X and runs on its powerful Colossus supercomputer. Grok-4 promises enhanced reasoning and multimodal capabilities. xAI is negotiating a massive $4.3 billion funding round, targeting an $80 billion valuation to accelerate development.

In surprise news, Hugging Face shut down its Hugging Chat service—a popular platform for comparing open-source AI models. Meanwhile, Abacus AI launched Deep Agent, a groundbreaking AI that performs discovery, makes decisions, self-improves, and runs code. Industry experts describe it as "magical" and "ahead of others" for handling complex tasks without human intervention.

Brazil's JusBrasil expanded its AI legal assistant JusIA, trained on the nation's largest legal dataset. Serving millions monthly, it helps users navigate complex laws and connect with attorneys—democratizing legal access in Salvador.

Agentic AI integration specialists like AI Squared and Morphos AI continued gaining traction by embedding AI directly into business applications while optimizing costs. This aligns with Gartner's projection that generative AI spending will surge 75% year-over-year to $644 billion in 2025, reflecting explosive market demand. The report notes traditional AI and predictive analytics solutions also drive growth toward $609 billion in services by 2028.

New entrants like CUJO AI, Tars, and LawGeex joined the AI agent landscape with specialized tools, while established startups like Cohere and Writer pushed boundaries in large language models and automation platforms.

Funding momentum remained strong industry-wide, with venture capital flooding AI startups tackling complex business challenges. From customer support to legal services and enterprise workflows, agentic AI proved its transformative potential across sectors—making this a pivotal week for the ecosystem.