USV raised $900M, including a $500M early-stage fund, up from $275M in 2024, cuts general partnership to four investors, and aims to lead more AI rounds (Bloomberg)

Union Square Ventures’ $900M raise, including a larger $500M early-stage fund, signals that investor capital is shifting toward backing more AI-native startups and competing more aggressively for leading positions in those rounds. For CIOs and technology leaders, this means the AI vendor landscape is likely to keep expanding quickly, increasing both the pace of innovation and the risk of fragmentation, so IT organizations will need stronger evaluation, governance, and partnership strategies to separate durable platforms from short-lived experimentation.