Plug and Play, Sequoia, Accel, and other top venture firms are fueling the next generation of AI innovation—backing startups from robotics and chips to drug discovery and data security.
AI VC activity heats up in 2025
California continues to dominate the AI venture landscape, with firms in the Bay Area and beyond making thousands of bets on the future of artificial intelligence. According to funding data as of June 2025, six California-based firms have emerged as the most active VCs in AI by total deal count:
Top 6 AI investors in California (by # of AI investments):
- Plug and Play
- Right Side Capital Management (RSCM)
- 500 Global
- Sequoia Capital
- General Catalyst
- Accel
These investors aren’t just riding a hype cycle—they’re placing long-term bets across chips, healthcare, robotics, software infrastructure, and edge AI.
1. Plug and Play
As of 2025, Plug and Play is one of California’s most active venture capital firms, with a strong focus on AI investments. The firm consistently backs seed and pre-seed startups in AI, software, and generative AI industries.
- 447 investments in AI
- 2203 total investments
- 20% of portfolio is AI-focused
Plug and Play’s approach is platform-driven—supporting founders with acceleration, partnerships, and global distribution. Its ecosystem model connects startups with Fortune 500s and government agencies alike.
2. Right Side Capital Management (RSCM)
RSCM (San Francisco) is one of California’s top early-stage investors, with a strong emphasis on investing in AI, SaaS, and software infrastructure.
- 308 AI investments
- 1820 total investments
- 17% AI portfolio share
RSCM’s no-frills, high-volume model has made it a go-to firm for founders raising pre-seed and seed rounds.
3. 500 Global
500 Global (San Francisco) continues to scale its AI investment activity globally, focusing on startups in emerging markets as well as the U.S.
- 238 AI investments
- 3186 total investments
- 7% AI portfolio share
It backs software, IT, and AI companies through a robust accelerator network, and has helped several unicorns scale from inception to IPO.
4. Sequoia Capital
Sequoia Capital (Menlo Park) is a pillar of Silicon Valley’s venture ecosystem and a legacy player in the AI space.
- 187 AI investments
- 2153 total investments
- 9% AI portfolio share
With a track record of backing generational tech companies, Sequoia is increasingly investing in foundational AI models, developer tools, and applied intelligence startups.
5. General Catalyst
General Catalyst (San Francisco) is becoming a major player in AI venture—supporting healthcare, fintech, consumer technology, and infrastructure AI startups.
- 171 AI investments
- 1479 total investments
- 12% AI portfolio share
The firm is doubling down on responsible AI and societal-scale platforms, betting on moonshot ideas that can transform institutions.
6. Accel
Accel (Palo Alto) is expanding its AI focus, especially across software infrastructure and vertical SaaS.
- 148 AI investments
- 2202 total investments
- 7% AI portfolio share
Its recent AI deals emphasize global teams and early-stage technical breakthroughs.
Did you know?
Plug and Play’s bets are already producing unicorns
Among these top investors, Plug and Play stands out not just for the volume of its AI investments, but for the strength of its outcomes. Several of its early bets have already matured into unicorns, transforming real-world industries. From robotics to drug discovery to chip design, these startups represent the depth and diversity of Plug and Play’s AI thesis—and the momentum building behind late-stage AI innovation.
1. BigID
In March 2024, BigID secured $60M in Series E funding.
Series E | Total funding: $306.1M
BigID is a leader in AI-driven data privacy, compliance, and security. Its platform enables organizations to discover, manage, and protect sensitive data using intelligent classification and policy automation. Trusted by Fortune 500s and heavily integrated into enterprise systems, BigID continues to expand its footprint in privacy tech as regulations tighten globally.
2. Groq
In August 2024, Groq raised $640M in Series D funding.
Series D | Total funding: $1.0B
Groq develops high-speed chips specifically designed for AI and machine learning workloads. Its tensor streaming processors are gaining traction in both enterprise and defense markets for real-time inference at ultra-low latency. With cutting-edge hardware and software co-design, Groq is helping power the next generation of compute-intensive AI applications.
3. Turing
In March 2025, Turing closed a $111M Series E round.
Series E | Total funding: $270.2M
Turing is transforming how companies hire global engineering talent using AI. Its platform screens, vets, and matches software developers with companies through an intelligent matching engine. As remote work normalizes, Turing is helping tech teams scale faster while ensuring top-tier quality and engineering productivity.
4. Flexiv
In June 2025, Flexiv raised $100M in Series C funding.
Series C | Total funding: $322.0M
Flexiv is pushing the boundaries of adaptive robotics. Its AI-powered robotic arms can perform complex tasks with a human-like touch, adapting to unstructured environments in manufacturing, agriculture, and healthcare. With a focus on full-stack robotics integration, Flexiv is positioning itself as a global leader in general-purpose automation.
5. Tenstorrent
In December 2024, Tenstorrent raised $693M in Series D funding.
Series D | Total funding: $1.0B
Tenstorrent designs next-gen chips optimized for AI and machine learning at scale. Backed by computing legend Jim Keller, the company is building AI hardware and software platforms that challenge industry incumbents. Its architecture supports both edge and data center applications, making it a strategic player in the AI hardware race.
6. Owkin
In June 2022, Owkin raised $50M in Series B funding.
Series B | Total funding: $304.1M
Owkin is an AI biotech firm using federated learning to accelerate medical research and drug development without compromising patient data privacy. Collaborating with major hospitals and pharma companies, Owkin enables secure data insights across distributed networks—revolutionizing how clinical AI is deployed in healthcare.
7. Tractable
In July 2023, Tractable secured $65M in Series E funding.
Series E | Total funding: $184.9M
Tractable applies computer vision to assess physical damage across vehicles, property, and infrastructure. Its AI tools are used by insurers and auto companies to speed up repairs, improve claims accuracy, and reduce fraud. Already deployed in over 20 countries, Tractable is bringing scalable automation to billion-dollar industries.
Join the conversation this November
Interested in learning more about VC investments in AI?
Join us at the TechEquity Ai Summit 2025 to hear directly from founders and investors—including Plug and Play, AI Fund, and more—who are backing the next wave of AI innovation.
Location: Plug and Play Tech Center, Sunnyvale, CA
Date: November 7–8, 2025
Register now: techequity-ai.org/registration
Source note: All funding amounts and company totals cited in this article, unless otherwise attributed, are drawn from Crunchbase data as of 2025.
