The encryption AI sector is strongly attracting investment! $92 million in financing in a single week, and the annual financing amount has exceeded $11.1 billion.

According to DefiLlama data, this week 7 encryption startups completed a total of $92 million in financing, raising the total financing amount for encryption startups in 2025 to $11.1 billion—which has reached 60% of PitchBook's total forecast of $18 billion for this year. Although venture capital (VC) funding is widely distributed, the theme this week is clear: artificial intelligence (AI). Half of the large financing flows into companies in the field of integration of encryption and AI, with AI-related projects accounting for over 60% of this week's total financing. The financing boom for encryption AI startups continues to heat up.

Encryption financing strong: Annual target more than halfway completed

• In the first 7 months before 2025, the total financing of encryption startups has reached 11.1 billion dollars.
• This week, a new financing of $92 million was completed by 7 companies.
• The current financing progress is significantly ahead of schedule, having completed 60% of the full-year target for 2025 predicted by PitchBook ($18 billion).
• VC investment trends show that funding is spreading widely, but AI has become the absolute focus.

AI-led Financing This Week: Three Major Projects Take the Lead The top three financing amounts this week are all focused on the intersection of encryption and AI, highlighting the popularity of decentralized AI infrastructure.

1. xTAO: Raised $22.8 million to build Bittensor ecosystem infrastructure

• Registered in the Cayman Islands, focusing on building infrastructure for the decentralized AI network Bittensor.
• Bittensor aims to challenge centralized AI giants like OpenAI and Google, compared by investor Samaroo to the "shock of encountering Bitcoin for the first time," referred to as "our best attempt at achieving decentralized AI."
• This round of financing is $22.8 million, with investors including well-known institutions such as Digital Currency Group, Animoca Brands, Arca, Borderless Capital, and FalconX.

2. Soluna: Raised $20 million, green data center services for BTC and AI

• The listed company (NASDAQ code: SLNH) operates a green data center that utilizes abandoned renewable energy to power Bitcoin mining and AI computing.
• Completed $20 million financing, led by Spring Lane Capital.
• Funds will be used to expand its software platform and launch new facilities at renewable energy sites.
• Key expansion area targets Bitcoin and AI mining hub - Texas.

3. Poseidon: Secured $15 million in seed round, a16z bets on AI data layer

• a16z crypto led its $15 million seed round, positioning at the intersection of AI and Web3.
• Built on Story Protocol, aims to design a decentralized data layer specifically to support the training of physical AI systems (such as robots and autonomous vehicles).
• Core Objective: To plan and provide training data licensed through intellectual property (IP) using the encryption native incentive mechanism and infrastructure.
• a16z Managing Partner Chris Dixon stated on platform X that Poseidon is committed to "building a new economic foundation for the internet," allowing "data creators to receive fair compensation for helping AI companies drive the next generation of intelligent systems."

Conclusion: The integration of AI and Crypto accelerates, with infrastructure and data layers in high demand This week's financing data clearly outlines the direction of venture capital bets: the deep integration of AI and encryption technology is currently the hottest track. From the underlying decentralized AI protocol Bittensor supported by xTAO, to the green computing power infrastructure provided by Soluna, and to the incentive-compatible AI training data layer built by Poseidon, capital is systematically laying out key links in the AI value chain. The annual financing amount has exceeded 11 billion dollars in advance, with 60% concentrated in AI-related projects, confirming the clear shift in investment hotspots in the encryption field. As giants and startups advance together, the development process of decentralized AI and the exploration of the Web3 data economy model are expected to accelerate further, laying the foundation for the next round of technological innovation.