Artificial intelligence-focused Infinite Reality said on Wednesday it has notched a valuation of $12.25 billion after raising $3 billion in a new funding round, joining a growing roster of startups riding the AI wave.

Analysts expect companies in the artificial intelligence market to spearhead tech sector funding in 2025, driven by increased expectations of exponential growth in the next few years as uses for generative AI continue to expand.

Founded in 2019, Infinite Reality is leveraging AI and other new-age immersive technologies to offer a suite of services to brands and creators that can increase audience engagement and monetisation.

“Put simply, we enable them (customers) to seamlessly convert their existing 2D website into an immersive space and add the power of AI to optimise sales,” said John Acunto, cofounder and CEO of Infinite Reality.

The company said it raised the capital from a “private investor whose portfolio focuses on global technology and real estate investments”.

Infinite’s institutional investors include entertainment and ticketing giant Live Nation, T-Mobile Ventures, RSE Ventures and Lux Capital, among others.

It has also received backing from celebrity and pop culture icons including DJ and record producer Steve Aoki, pop band Imagine Dragons and NBA player Rudy Gobert. Investor enthusiasm for the AI sector has been unprecedented since Sam Altman’s OpenAI launched ChatGPT in November 2022.

AI companies contributed significantly to the recovery of US venture capital funding from market lows, with the total capital raised in 2024 surging nearly 30%, according to data from Pitchbook.

Anthropic, another AI startup, is nearing a deal to raise an additional $2 billion that values it at $60 billion, Reuters reported earlier this week citing sources.

Last month, Databricks also secured a $62 billion valuation after raising a massive $10 billion in one of the largest venture capital funding rounds in history.

Artificial intelligence-focused Infinite Reality said on Wednesday it has notched a valuation of $12.25 billion after raising $3 billion in a new funding round, joining a growing roster of startups riding the AI wave.

Analysts expect companies in the artificial intelligence market to spearhead tech sector funding in 2025, driven by increased expectations of exponential growth in the next few years as uses for generative AI continue to expand.

Founded in 2019, Infinite Reality is leveraging AI and other new-age immersive technologies to offer a suite of services to brands and creators that can increase audience engagement and monetisation.

“Put simply, we enable them (customers) to seamlessly convert their existing 2D website into an immersive space and add the power of AI to optimise sales,” said John Acunto, cofounder and CEO of Infinite Reality.

The company said it raised the capital from a “private investor whose portfolio focuses on global technology and real estate investments”.

Infinite’s institutional investors include entertainment and ticketing giant Live Nation, T-Mobile Ventures, RSE Ventures and Lux Capital, among others.

It has also received backing from celebrity and pop culture icons including DJ and record producer Steve Aoki, pop band Imagine Dragons and NBA player Rudy Gobert. Investor enthusiasm for the AI sector has been unprecedented since Sam Altman’s OpenAI launched ChatGPT in November 2022.

AI companies contributed significantly to the recovery of US venture capital funding from market lows, with the total capital raised in 2024 surging nearly 30%, according to data from Pitchbook.

Anthropic, another AI startup, is nearing a deal to raise an additional $2 billion that values it at $60 billion, Reuters reported earlier this week citing sources.

Last month, Databricks also secured a $62 billion valuation after raising a massive $10 billion in one of the largest venture capital funding rounds in history.