AI Infrastructure and Wearable Tech Drive Billions in Latest Funding Rounds

Crusoe Energy Systems, a Denver-based innovator in AI infrastructure, has recently secured a substantial $1.38 billion in Series E funding, propelling its valuation to over $10 billion, as reported by Tech Funding News on October 24, 2025. This significant investment aims to accelerate the development of AI data centers powered by cleaner energy solutions, addressing the escalating energy demands of artificial intelligence.

The funding round for Crusoe Energy Systems was co-led by prominent investors Valor Equity Partners and Mubadala Capital, with additional backing from industry giants like Nvidia, Fidelity Management, and Founders Fund, according to crunchbase data. This capital infusion underscores a strong investor confidence in Crusoe's unique approach to sustainable AI computing.

In parallel, Fal.ai, a startup specializing in multimodal AI platforms, successfully raised $250 million in a Series D round, achieving a valuation exceeding $4 billion, CIO Bulletin reported on October 22, 2025. This funding, led by Kleiner Perkins and Sequoia Capital, will be channeled into expanding its cloud infrastructure for advanced AI models that process various data types.

Meanwhile, San Francisco-based Sesame, a company at the forefront of AI smart glasses technology, also closed a $250 million Series B funding round, according to beamstart on October 22, 2025. Led by former Oculus executives, Sesame intends to use this capital to launch its early beta eyewear and scale its manufacturing and distribution efforts for conversational AI-powered wearables.

These substantial investments highlight a broader trend of significant capital flowing into the artificial intelligence sector, particularly in infrastructure and cutting-edge applications. KPMG International noted on October 15, 2025, that AI continues to dominate venture capital activity, with a record share of startup funding in 2025 going to mega-rounds exceeding $100 million.

• Crusoe Energy's Strategic Pivot and Sustainable Mission: Founded in 2018, Crusoe Energy Systems initially focused on converting wasted natural gas from oil fields into energy for cryptocurrency mining. However, the company has since fully exited its crypto operations to concentrate on building and operating next-generation data centers for AI workloads, as detailed by Tech Funding News. This strategic pivot leverages their Digital Flare Mitigation (DFM) technology to provide cleaner energy for the power-intensive AI industry.

• Addressing AI's Growing Energy Demands: The demand for AI data centers is driving record construction levels, with AI's share of global data center usage projected to grow significantly, according to jll. Crusoe's vertically integrated "neocloud" model, which includes developing its own energy sources and advanced cooling technologies, positions it as a critical player in meeting this escalating demand sustainably. The company is actively building large-scale facilities, including a 1.2-gigawatt campus in Abilene, Texas, for major clients like OpenAI and Oracle.

• Fal.ai's Rapid Ascent in Multimodal AI: Fal.ai's impressive $4 billion valuation, achieved less than three months after a $1.5 billion Series C round in July 2025, underscores the explosive growth in multimodal AI. TechCrunch sources reported on October 21, 2025, that the company's platform, co-founded by Burkay Gur and Gorkem Yurtseven, offers over 600 multimodal models utilizing thousands of Nvidia GPUs, serving a growing list of enterprise clients including Adobe and Shopify.

• The Expanding Multimodal AI Market: The global multimodal AI market is experiencing rapid expansion, with Precedence Research projecting its size to reach $42.38 billion by 2034, growing at a CAGR of 36.92% from 2025. This growth is fueled by technological advancements and increasing adoption across various industries, as multimodal AI processes diverse data types like text, images, and video to enhance understanding and decision-making.

• Sesame's Vision for Wearable AI: Sesame, led by former Oculus CEO Brendan Iribe, is at the forefront of developing AI-powered smart glasses designed for an "always-on" personal assistant experience. Sequoia Capital stated that Sesame's vision is to create an ambient interface with contextual awareness of the world, integrated into lightweight, fashion-forward eyewear. This aligns with a broader market trend where global smart glasses shipments soared 110% year-over-year in the first half of 2025, with AI models dominating shipments, as reported by Counterpoint Research.

• The Competitive Landscape of AI Smart Glasses: The smart glasses market is becoming increasingly competitive, with established tech giants and new entrants vying for market share. Counterpoint Research indicated that Meta currently leads this booming sector, driven by the success of its Ray-Ban Meta AI Glasses. The entry of companies like Sesame, alongside new products from Chinese manufacturers such as Xiaomi and TCL-RayNeo, signifies a robust and innovative future for wearable AI technology.

• AI Investment Trends and Future Outlook: The current funding landscape reflects a concentrated investment strategy, with a few big names in AI taking a larger share of the capital. Crunchbase data from October 21, 2025, showed that over two-thirds of mega-round investment in 2025 went to AI-related categories. This trend is expected to continue, with AI model development, industry-specific applications, and AI infrastructure remaining key focus areas for venture capitalists in the coming quarters.