August 27, 2025

{{#if first_name}}Hi, {{capitalizeFirst (lower first_name)}}.{{else}}Hi.{{/if}} As AI training hogs headlines, inference is quietly driving most GPU usage — and a growing share of venture investment. FriendliAI’s recent $20 million seed extension round highlights how startups are racing to make AI cheaper and faster to run in production. The company shares with us exclusively how it’s positioning itself in a heated space alongside competitors like Fireworks AI. Plus, as more startups buy their venture-backed peers in 2025, Gusto, an HR tech startup valued at nearly $10 billion, is reportedly buying Guideline, provider of retirement plans for small and medium-sized businesses, for an undisclosed sum. And a look at which U.S. tech companies cut jobs in the past few weeks, from Boston to San Francisco.

🚀 Exclusive: AI inference platform raises $20M seed extension

FriendliAI just raised a $20 million seed extension to scale its proprietary inference platform — the “last mile” where AI actually meets users, the startup tells Crunchbase News exclusively. CEO Byung-Gon “Gon” Chun said demand is exploding as 80%-90% of GPUs are now dedicated to inference. The company claims its system delivers up to 90% GPU cost savings while keeping performance at the top of the market.

Related Crunchbase list: Rounds Raised By Startups Using AI

🤝 Gusto to buy retirement plan provider amid startup M&A bump

Gusto, an HR tech company valued at nearly $10 billion, has reportedly agreed to acquire Guideline, a startup that provides retirement plans to small and medium-sized businesses that has raised $340 million in funding from investors. The deal comes as more startups are buying their venture-backed peers in 2025.

Related Crunchbase lists:
• Wealth Management Startup Funding
• Global Venture-Backed M&A
• Startups Buying Startups, Global

✂️ Tech layoffs update: Enterprise giants cut jobs again

Enterprise tech saw big job cuts last week, largely in the San Francisco Bay Area, but also in Seattle, Boston and elsewhere, as giants and startups alike issued pink slips.

📈 Bigger exits gain steam, Crunchbase data shows

After years of muted activity, U.S. startup exits are coming back in a big way. IPOs from Figma, Circle and others, alongside billion-dollar acquisitions like Alphabet’s planned $32 billion deal for Wiz, have pushed 2025’s exit values well past recent years. For venture investors, it’s long-awaited relief — and a sign that bigger outcomes are finally back on the table.

🤔 Interesting startup deals you may have missed

With August as a prime vacation month, some may have missed a few of the more unique startups that raised fresh cash. We share some under-the-radar companies that got funding this month, ranging from healthcare management to sewing robots to sniffing out credit card fraud and vendor overcharges. All, of course, putting artificial intelligence to work.