Mega M&A & funding
Key Questions
What was the scale of AI funding in Q1 2026?
AI deal activity surged to $242B in Q1, with 80% of VC flowing to infrastructure and China's funding tripling year-over-year.
Which companies achieved major valuations or revenue milestones?
Modal reached $4.65B valuation, Cursor hit $3B ARR, and Hark raised $700M at a $6B valuation with backing from NVIDIA and others.
What is the status of OpenAI's path to profitability?
OpenAI reported a -122% operating margin in Q1, while Anthropic moved toward profitability and OpenAI explores an IPO.
How is SpaceX involved in AI acquisitions?
SpaceX is reportedly pursuing a $60B acquisition of Cursor post-IPO as part of expansion into AI tooling.
What funding is DeepSeek raising in China?
DeepSeek is in talks for a $10B round that could redefine China's AI race, with potential participation from CATL and other investors.
Which hardware firms are attracting investment?
Intel, Tenstorrent, and Hark are drawing capital from NVIDIA, AMD, Qualcomm, and ARK Venture amid the chip infrastructure race.
What caution exists around inflated ARR figures?
Analysts warn that some reported ARR numbers, including Cursor's $3B run rate, may reflect optimistic projections amid rapid but volatile growth.
How are mega-rounds affecting U.S. VC dominance?
AI megarounds are reinforcing U.S. venture capital leadership even as overall deal counts remain relatively flat.
Q1 $242B surge; Anthropic profitable; OpenAI IPO; Modal $4.65B; Cursor $3B ARR; Hark $700M Series A $6B val (NVIDIA/AMD/Intel/Qualcomm/ARK); Intel/Tenstorrent; 80% VC to infra; China tripling; DeepSeek $10B; xAI financials; inflated ARR caution; SpaceX acquiring Cursor for $60B post-IPO.