Startups Weekly AI News
November 17 - November 25, 2025This week marked a major turning point for artificial intelligence startups as investors poured billions of dollars into companies building AI agents. These AI agents are computer programs that can make decisions and do work automatically, just like having team members who never sleep. The money flowing into these companies shows that people believe AI agents will change everything about how businesses operate in the next few years.
One of the biggest stories was about Physical Intelligence, a company based in San Francisco that teaches robots how to work like humans. They raised an incredible $600 million in new funding. This company uses machine learning, which is a type of artificial intelligence that helps computers learn from examples. Physical Intelligence is now backed by some of the smartest money in America, including investment money from Jeff Bezos, the founder of Amazon. This shows how serious people are about robot AI.
Luma AI also got huge funding this week, raising $900 million to build AI systems that create pictures and videos. Users can simply write what they want to see, and the AI creates it. This company is based in Palo Alto, California, one of the centers of technology in the United States. The money they raised means they can hire more smart people and build better tools that create realistic images and videos from words.
Computers need power to run, and a company called Lambda raised $1.5 billion to provide that power. Lambda rents powerful computers to companies that need them for training and running AI models. AI models are the computer brains that power intelligent machines. This huge amount of money shows investors believe companies will need billions of dollars worth of computer power for AI in the future.
Security is becoming the biggest focus for AI agents. Companies are worried that AI agents themselves need protection. A brand new company called Runlayer launched this week with $11 million in funding from famous investors. Runlayer uses something called Model Context Protocol, which is a new way to make AI agents safer and better at their jobs. They have already signed up big companies like Gusto, Rippling, and Instacart as customers. The founder of Runlayer, Andrew Berman, previously created popular companies that sold for big money.
In the United Arab Emirates, a company called Secure.com raised $4.5 million to build AI security teammates. These AI agents watch for computer attacks and stop them automatically. One Digital Security Teammate can do the work of a whole team of human security experts combined, but costs much less money. This is important because companies worldwide struggle to find enough workers trained to protect their computers from hackers. The company says its AI agents can start protecting a company in just 30 minutes.
Microsoft announced major new AI agent tools at a big event called Microsoft Ignite. They introduced something called Agent 365, which is like a control center for companies managing many AI agents at once. Microsoft also shared that by 2028, companies will have 1.3 billion AI agents working on jobs. Microsoft is making it easier for small and medium companies to use AI agents too, with a new product costing just $21 per person each month. This means even small businesses can have AI agents helping them work.
A company called Wonderful from Israel raised $100 million to build better AI agents. Their leader said that even though some people think AI agent funding might slow down, the best companies will get more money than ever. This shows the market is separating the winners from the losers. The smartest AI agent companies will keep getting money, while weaker ones might fail.
Financial companies are also jumping into AI agents. Ramp, a company that helps with money management, introduced an AI agent for financial spreadsheets. This agent can work automatically like a smart helper, doing calculations and organizing numbers. Another company called Archetype AI raised $35 million to build AI agents for different business purposes. A Canadian company called Feroot raised $14 million to build AI agents that read computer code. These agents make sure code follows all the laws and rules about data and privacy.
All these announcements show that AI agents are becoming normal business tools very quickly. Companies are not arguing whether to use AI agents anymore. They are fighting to get the best AI agents working for them. Investors, big tech companies, and entrepreneurs all believe that the future of work will include many autonomous AI teammates helping humans do their jobs better and faster.