Seattle-based venture capital firm Madrona released its sixth annual Intelligent Applications 40 list this week, naming 45 private AI companies (the five extras come from ties) that have collectively raised $410 billion from investors across the industry.

Three of them — Anthropic, OpenAI and Databricks — account for 92% of that total.

The uneven distribution of funding reflects a larger split in the tech industry, as the largest AI companies make huge bets on the computing capacity needed to meet demand for their models, while almost everyone else builds businesses on top of them.

The frontier labs are “increasingly funded by strategic capital from the likes of Amazon, Google, Nvidia and SoftBank rather than traditional venture,” Madrona’s Matt McIlwain and Rolanda Fu wrote in a post accompanying the list. That scale, they added, “makes every other category on this list look capital light by comparison.”

On top of that, he said, hundreds of billions of dollars are flowing into OpenAI and Anthropic.

“And what I say to both the big tech companies and to the people funding the model companies: thank you very much,” McIlwain said on Bloomberg TV, noting that the five largest tech companies will spend an estimated $750 billion in capital expenditures this year.

But even setting those big three aside, McIlwain said, the rest of the winners have raised an average of more than $800 million each. That’s a total of $34 billion combined. Companies across the list are raising far more than they used to, enough that Madrona had to redraw its own categories.

The list sorts companies by total capital raised, and this year the ceiling for “early stage” rose to $50 million, up from the $30 million threshold that held for the previous five lists. The cutoff for “emerging enablers,” its category for smaller infrastructure companies, doubled to $100 million.

“Companies across the board are raising more money, and the definition for what ‘early’ means continues to shift higher,” McIlwain and Fu wrote.

Madrona has published the IA40 since 2021 as a roster of the private companies it considers most important in building and enabling AI applications. According to the firm, this year’s list drew on input from 72 investors representing 54 venture and corporate firms, who nominated and voted on more than 450 companies, with PitchBook data factored into the scoring.

Two Seattle-area companies made this year’s list:

• Clarify, which builds an AI-native CRM, appears in the early-stage category for the second straight year, with $23 million raised. It acquired San Francisco’s Seam AI in July.
• Gradial, which builds AI agents for enterprise marketing, is a first-time winner in the mid-stage category; it raised $65 million in June at a $675 million valuation, bringing its total to $120 million.

Last year’s list included two other Seattle-area companies in addition to Clarify.

• OpenAI acquired one of them, Bellevue-based Statsig, for $1.1 billion in September 2025, making Statsig founder Vijaye Raji its CTO of applications.
• Security startup Dropzone AI, which was on the list last year, did not repeat this year.

Madrona, one of the Seattle region’s largest and oldest venture capital firms, is an investor in all four — Clarify, Gradial, Statsig and Dropzone AI — although it also invests outside the region, and many of the companies on the IA40 are not in its portfolio.

Several of the companies on this year’s list have engineering centers in the Seattle region, including Anthropic, which leased 113,000 square feet in South Lake Union this year; OpenAI, which expanded to nearly 300,000 square feet in downtown Bellevue after the Statsig acquisition; and Anduril, which employs about 560 people in Bellevue and Seattle.

Databricks, the San Francisco-based data and AI company (which leased 142,000 square feet in Bellevue this year), is the only company to appear on all six IA40 lists. That said, 23 of last year’s 40 winners returned this year, a 58% repeat rate, up from 33% the year before.

McIlwain and Fu wrote that the biggest and most established companies on the list are holding their spots, noting that “the age of experimentation is giving way to an age of enterprise readiness,” with buyers and investors “paying premiums for companies that can demonstrate real ROI.”

Madrona will recognize the winners at its IA40 Summit in Seattle on Sept. 29 and 30.

Updated with Matt McIlwain’s comments to Bloomberg TV.

Attending as many Seattle Tech Week events as possible and talking with as many people as I could, I was struck by the number of people looking for work and the volume of visitors from the Bay Area, including a number of investors looking to get a sense for what the regional tech scene is about.

It was hard not to imagine them being impressed with the sheer level of engagement and enthusiasm, even if they didn’t happen to catch Jacob Colker’s rallying cry. With more than 250 events (and waiting lists for many of them) it was more than any one person could take in.

It wasn’t Seattle AI Week — that’s still to come in October — but given the moment in tech and the world, the topic of artificial intelligence was naturally the main throughline of the week.

A panel that changed my perspective was early in the week, called “Foundation Models Go Vertical,” hosted by the Seattle pre-seed firm Ascend at Washington 1000 downtown. Founding general partner Kirby Winfield told the room that 600 people had tried to get in.

One of the biggest insights was from Manos Koukoumidis, CEO of Kirkland-based Oumi and a former Google Cloud AI engineering manager who led large language model efforts there.

Companies that are racing to build on top of the frontier models, he said, are renting a kind of intelligence that has very little to do with their own businesses.

“Enterprises are using a model that is trained on 5% of the world’s data that sits on the web, not the other 95%,” he said, referring to the data sitting inside their own organizations.

Which led him to the question (and the point) that I keep coming back to: If the intelligence at the center of the product belongs to someone else, he asked, “are you really an AI company, or an application company on top of somebody else’s intelligence?”

The next day, in the audience for a recording of the Founded & Funded podcast by Seattle Tech Week organizer Madrona, I posed the question that we debated on last week’s episode of our GeekWire Podcast: what should Seattle founders and investors make of venture numbers that rank Philadelphia, Austin, and New York ahead of them?

It was the right place to ask, given that the show featured Nizar Tarhuni, EVP for research and market intelligence at PitchBook, which tracks the numbers, and Madrona partner Sabrina Albert.

Albert pointed out that the numbers don’t capture everything. A company can have a big engineering group in Seattle, or even a co-founder here, and still be counted as a Bay Area company, she said. Large engineering offices for OpenAI and Anthropic are the latest examples.

Tarhuni made a similar point: “There’s so much talent in some of the biggest unicorns that are actually working out of Seattle,” he said. In terms of overall economic activity, he added, “there’s a lot more here that doesn’t make its way into those numbers.”

Other quotes and insights that stood out from the sessions we attended:

Patrick Thompson, CEO of Seattle-based Clarify, said his company’s Anthropic bill had tripled in three months. He has shifted spending to AWS Bedrock, citing reliability problems, and now runs smaller models locally on his own laptop for low-level work.

Madrona’s Albert, on the shift to selling outcomes: “Before, when you were thinking about traditional software, you would charge for a seat or a unit of software. But now you can really fundamentally change it. … If I deliver this outcome for you, then you can actually pay me for it.”

Ken Horenstein, founder of Pack Ventures, which invests in startups tied to the University of Washington, on the knock that Seattle is slow: research institutions here are “choosing problems that are 10, 15, 20, 50-year problems,” he said. “Sometimes people put that as a negative rap on us because we don’t go really fast and flame really bright like you might see in other markets. But I actually think that can be used as a benefit.”

Ben Gaffney, deputy general counsel at OpenAI, on the notion that AI is thinning out headcount: “Even within the legal team that I work in, we need more people. Even though we’re getting all these massive productivity gains, it isn’t like you don’t need people to supervise this stuff.”

Brian Hall, the longtime Microsoft, AWS and Google executive who became chief marketing officer at Mistral AI in June, on where this all ends up: “We’re gonna laugh when we thought that AI was gonna save us time.”

Ascend’s Winfield, on the limits of what investors provide: “If I invested in you, it’s not because I’m smart about your market. It’s because you’re smart about your market. … If you’re looking for answers from your investors, you’re in trouble.”

Karl Siebrecht, co-founder and CEO of Flexe, at a networking event, telling founders to stop networking: “Spending time as a founder trying to market yourself to investors, I think, is a fallacy. If you focus on building a valuable company … I can promise you, investors will find you.”

Molly Klein, founder and CEO of Perk Events, who runs some of GeekWire’s biggest events, on why any of this happens in the first place: “Events are hands-down the strongest business development tool that you have,” she said. “One conversation may take six emails in three weeks. At an event, it happens in 10 minutes, because you’re getting that face-to-face time.”

That pretty much summed up the week.