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AI News Wrap-Up: 16th May 2025

🚀 StackBlitz Surges with AI Pivot: From Crisis to $40M ARR

StackBlitz, the browser-based dev platform, narrowly escaped collapse by pivoting to AI coding tools. Their new product Bolt.new, powered by Anthropic’s Sonnet 3.5, helped them jump from $80K to $4M in ARR in one month, reaching $40M ARR by March 2025. Their innovative token-based pricing and payment integrations are fueling momentum, aiming for $100M ARR.

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Bat VC Unleashes $100M AI Fund, Expands into India

Bat VC, co-founded by the former head of X India, launched a $100M second fund focused on early-stage AI and deeptech. With India as a new focus market, they’re betting on the nation’s rapidly growing AI startup ecosystem.

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🎬 Fairground Entertainment Raises $4M for AI-Generated Content

California-based Fairground Entertainment secured $4M in seed funding led by Viant Technology. The funds will help launch a new AI studio and streaming platform offering fully AI-generated feature-length content, expected to debut in Q3 2025.

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⚖️ States Resist Federal AI Regulation Freeze in GOP Proposal

A GOP-backed clause in the latest U.S. tax bill would prevent states from regulating AI for 10 years. Attorneys general from California, New York, Ohio, and others have pushed back, warning of risks to consumer protection and tech accountability.

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💊 EU AI Act Slows Down Pharma’s AI Integration

At LSX World Congress, leaders in life sciences voiced concern that while the EU AI Act is officially in force, unresolved liability rules are delaying AI adoption in pharma until at least 2026.

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📈 Cohere Doubles Revenue to $100M with Enterprise AI Push

Toronto-based Cohere announced they’ve hit $100M in annualized revenue, thanks to strong enterprise demand for secure, on-premise LLM deployments. Their soon-to-launch chat app, “North,” targets professional knowledge workers.

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Yesterday's AI News: 15th May 2025

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