Startups Weekly AI News
December 22 - December 30, 2025The AI agent revolution is happening right now, and it's bigger than anyone expected. An AI agent is like a digital coworker that can think and make decisions on its own. Instead of just answering questions like regular AI chatbots, these agents can actually do real jobs. Since 2023, more than 500 startups have started making AI agents, and the technology is now the most important thing in tech. The market is growing so fast that experts predict it will be worth $88.35 billion by 2032, growing at 42.8% every year. Companies like Microsoft, Google, and Amazon are all building their own AI agents to make sure they stay on top.
One of the most exciting stories this week is about a company called Runway, which makes AI tools for creating videos. This small company with only about 100 workers beat huge companies like Google and OpenAI to create the best video AI in the world. Runway is now worth $3.55 billion, which means investors think it's worth a lot of money. Even cooler, Adobe – the company that millions of designers use – announced it will put Runway's video technology into its famous tools like Premiere Pro and After Effects. This means that people making videos will have super powerful AI help built right into the tools they already use.
The big companies are also buying smaller AI startups to get stronger. Anthropic, which is one of the biggest AI companies, made its first-ever purchase by buying Bun, a coding tool that helps programmers write code faster. This is a big deal because it shows that even the most successful AI companies think buying other companies is the best way to win. Google also did something interesting – it invested in a company called Cursor that makes AI coding helpers, but then Google made its own competing tool called Antigravity. Some people think Google is trying to build everything it needs instead of just using other companies' tools.
Disney made a bold move this week by giving OpenAI $1 billion and becoming the first big entertainment company to officially partner with an AI company. This means that people will soon be able to create short videos using more than 200 characters from Disney, Marvel, Pixar, and Star Wars using AI. Imagine being able to make a video with Mickey Mouse or Elsa or Darth Vader – all created by AI. This shows that AI isn't just for tech companies anymore; it's becoming part of entertainment and probably every other industry too.
In Seattle, a city famous for tech startups, a company called Gradial raised $35 million to build AI agents that help big companies manage their marketing work. Gradial's AI agents can read information from many different computer systems and do marketing tasks automatically, like organizing content and making campaigns better. This is important because companies spend millions of dollars on people doing work that AI agents could do in seconds. Gradial has already been hired by many of the biggest companies in the world, which shows that AI agents are ready to help real businesses right now, not just in the future.
The biggest change happening in AI right now is called consolidation, which is a fancy word for saying that big companies are buying or partnering with smaller companies to own more of the market. Google owns the coding tool (Antigravity), Adobe owns the video and design tools, and Disney owns the characters that will be in AI videos. This means that instead of many different companies competing, a few huge companies are taking control of AI. Some people worry this isn't good because it means there's less competition, but others say it's good because it makes AI tools better and easier to use.
AI agents are changing what jobs look like. Instead of replacing workers completely, AI is making companies try to cut costs and work faster. Many companies are spending billions of dollars building AI systems, and this is changing how businesses operate all around the world. Young people who are learning about tech right now should understand that AI agents will be normal in their jobs, just like email and computers are today. The future isn't just about AI agents doing all the work – it's about AI agents working together with people to make better things happen faster.