Startup Trends: Q2 2025 acquisitions

There was no shortage of Q2 M&A activity as private companies looked to acquire firms with competencies that would allow them to advance their products and better service their customers.

This quarter’s most notable acquisitions spanned artificial intelligence, robotics, defense, data infrastructure and fintech. Here are the Q2 deals involving private companies listed on Forge Global.

Hugging Face acquires Pollen Robotics

In May 2025, Hugging Face, the New York–based open-source AI platform company which offers community resources to developers, researchers and enterprises, acquired Pollen Robotics, a France-based robotics startup known for developing the open-source humanoid robot Reachy.¹ The deal highlights a growing intersection between large language models and physical-world deployment — a frontier many see as the next phase in applied AI.

Pollen Robotics has gained recognition in research and education circles for its developer-friendly and modular robotic systems.² The deal signals Hugging Face’s intent to position itself at the convergence of embodied AI and open developer ecosystems.

Founded in 2016, Hugging Face’s price per share is $25.25 as of its latest funding round in August of 2023. Its key investors include Google, Amazon, Mercuri, Mozilla Ventures and Thirtyfive Ventures.

OpenAI adds io and Windsurf to its ecosystem

OpenAI, headquartered in San Francisco, is an AI research company offering advanced AI models to organizations and individuals. The private company continued its acquisition streak in Q2 with the purchases of io, an electronic hardware company³, and Windsurf, a startup focused on development tools for AI.⁴ The acquisitions were announced in May, and the deals were valued at $6.5 billion and $3 billion, respectively.

The mergers highlight OpenAI’s interest in developing AI devices that can be used in everyday life. io, a giant of the tech world, was founded by former Apple designer Jony Ive. The combined expertise of io and Windsurf could potentially complement OpenAI’s coding capabilities along with its device manufacturing.

Founded in 2015, OpenAI’s Forge Price™ is $469.47 as of July 10, 2025, implying a valuation of $324.62 billion. Its notable investors include Y Combinator, Amazon Web Services, Microsoft and Khosla Ventures.

Anduril acquires Klas to expand tactical communications

Defense-tech startup Anduril, based in Costa Mesa, California, acquired Klas, a secure communications technology firm specializing in rugged networking solutions for defense and government clients.⁵ The deal, announced in May, potentially strengthens Anduril’s ability to provide more agile and interoperable systems for military organizations.

Klas, headquartered in Dublin, Ireland, brings decades of experience working with NATO-aligned forces. Its solutions will complement Anduril’s AI-enabled surveillance solutions and autonomous systems. The deal will establish Anduril’s first office in Dublin, furthering the firm’s global presence.

Founded in 2017, Anduril’s Forge Price™ is $40.88 as of July 10, 2025, implying a valuation of $30.5 billion. The defense tech company’s notable investors include 9yard Capital, Andreessen Horowitz, Ethos VC and 137 Ventures.

Databricks buys Neon to own the full data stack

In one of the quarter’s highest-profile infrastructure deals, San Francisco-based Databricks acquired Neon, a startup that offers a serverless Postgres platform, in May.⁶ The acquisition aims to bring Neon’s cloud-native database architecture into Databricks’ data and AI infrastructure — allowing the unification of their platforms for more efficient solutions.

Founded in 2013 and a Forge Private Market Magnificent 7 company, Databricks has been demonstrating innovation in its product. In March it was reported that the private company was partnering with AI firm Anthropic to integrate more AI capabilities into its solutions.⁷ Databricks has more than 10,000 customers, including Comcast, Condé Nast and Block, all with the ability to leverage these new integrations.⁸

Databrick’s Forge Price™ is $112.75 as of July 10, 2025, implying a valuation of $75.63 billion. The firm’s notable investors include Thrive Capital, Andreessen Horowitz, Insight Partners and T. Rowe Price Associates.

Ripple buys Hidden Road to enter prime brokerage

In a move to expand beyond payments and into institutional finance, global fintech solutions firm Ripple acquired Hidden Road, a prime brokerage platform specializing in digital assets and FX trading. The deal was announced in April and was valued at $1.25 billion.⁹

The acquisition underscores Ripple’s intent to enhance its infrastructure to meet the needs of institutional clients. The acquisition could allow Ripple to provide lending services to hedge funds, asset managers and large financial institutions.

Founded in 2012, San Francisco-based Ripple’s Forge Price™ is $95.57 as of July 10, 2025, implying a valuation of $15.52 billion. Ripple’s key investors include Andreessen Horowitz, Blockchain Capital, Founders Fund and Lightspeed Venture Partners.