AI-powered startup Infinite Reality valued at $12.25 billion after $3 billion fundraise

Artificial intelligence continues to attract massive investment as 5-year-old AI-focused startup Infinite Reality announced a $12.25 billion valuation following a $3 billion funding round. The company joins a growing group of startups thriving on the rising demand for AI innovations.

The new funding came from a “private investor whose portfolio focuses on global technology and real estate investments.”

Infinite Reality’s backers also include institutional heavyweights like Live Nation, T-Mobile Ventures, RSE Ventures, and Lux Capital. Celebrity endorsements add to its appeal, with DJ Steve Aoki, pop band Imagine Dragons, and NBA player Rudy Gobert among its supporters, Reuters reported.

Founded in 2019 by John Acunto (CEO) and Amish Shah, Infinite Reality leverages AI and immersive technologies to help brands and creators enhance audience engagement and boost monetization efforts.

“Put simply, we enable them (customers) to seamlessly convert their existing 2D website into an immersive space and add the power of AI to optimize sales,” Acunto said in a statement.

Analysts anticipate the artificial intelligence market will continue to lead tech sector funding in 2025. As generative AI applications expand, expectations for exponential growth are fueling investor confidence.

The excitement around AI has grown significantly since OpenAI’s release of ChatGPT in late 2022. According to Pitchbook, AI startups played a critical role in driving a 30% rebound in U.S. venture capital funding in 2024.

Meanwhile, Anthropic, another major AI player, is reportedly nearing a deal to raise $2 billion at a valuation of $60 billion, according to Reuters.

With AI showing no signs of slowing down, Infinite Reality’s impressive valuation underscores the sustained enthusiasm for the sector’s transformative potential.