AISquared Experiences Rapid Growth in 2025, Solidifying Its Position as a Leading Player in Operationalizing AI in Enterprises
1100% ARR growth in 2025, 115%+ net revenue retention, and 4x customer growth as AISquared scales secure, production-ready enterprise AI across commercial and federal markets
WASHINGTON, Jan. 14, 2026 /PRNewswire/ -- AISquared, a provider of enterprise data and AI infrastructure platform, today announced strong business momentum and continued customer adoption, reflecting growing demand for secure, production-ready AI across enterprise and federal environments.
In 2025, AISquared achieved 1,100% growth in ARR, driven by expansion within existing accounts and steady acquisition of new customers. Net revenue retention remains strong at 115%+, indicating sustained customer value and long-term platform usage. The company also added 4x new customers, expanding its footprint across commercial, regulated, and federal markets.
AISquared continues to see demand across industries where compliance, data control, and speed to value are critical. Enterprises are at an inflection point in AI adoption. A recent study shows that 95% of AI pilots fail to reach production, highlighting a wide gap between investment and real-world impact. At the same time, IDC forecasts that global Gen AI spending is expected to reach $632B by 2028 at a ~29% CAGR, driven by demand for AI that works within existing systems and delivers measurable outcomes. The growing disconnect between experimentation and execution represents a major market opportunity for platforms that help organizations move AI into production securely and at scale.
Growing Momentum Across Enterprise & Federal Markets
AISquared's traction extends beyond enterprises to high-stakes, mission-driven federal agencies. The company closed the year with increased adoption across federal agencies, reflecting a significant expansion in use cases. This success reinforces that the AISquared approach is the most cost-effective and fastest way to modernize legacy applications with AI insights.
This momentum is exemplified by our collaboration with NASA's Jet Propulsion Laboratory (JPL) to modernize planetary protection workflows for the robotic exploration of Mars. This partnership highlights a shared vision of accelerating the adoption of AI, data integration, and digital modernization across the Space enterprise, demonstrating confidence in AISquared's platform to deliver AI-driven insights directly into mission workflows.
Growth Funding
AISquared raised a growth funding round led by Coast Range Capital with participation from existing investor New Enterprise Associates (NEA), from Roger Ferguson, former Vice Chairman of the Federal Reserve, former CEO of TIAA, and a current member of Alphabet's Board of Directors and Darren Kimura AISquared's Chairman, President and CEO.
Accelerating Enterprise AI deployment with focus on product development, go-to-market expansion, and continued investment in enterprise and federal use cases.
"AI promises transformation, but too often it gets stuck in pilot mode," said Darren Kimura, Chairman and CEO of AISquared. "Studies show that 95% of AI projects fail to reach production. Our mission is to solve that last-mile challenge and make AI operationally ready, scalable, and secure. With this financing, we can help organizations bring AI into the field and deliver real business and mission impact."
Strengthening the Board and Executive Team
To support its next phase of growth, AISquared continues to invest in leadership depth across technology, field operations, and industry focus areas.
- We added Mark Vranish, former CFO of Zynga and current Chairman of the Board of Directors of Semrush (NASDAQ:SEMR), as a new member of our board of directors.
- Raghu Vatte joined as Field CTO and Head of Customer Success. He brings more than 20 years of experience in enterprise technology leadership, having previously worked with ZEDEDA, an open-source Edge Computing Operating Systems provider; Skyport Systems; Cisco Systems; and Juniper Networks.
- Shashi Prakash joined as the Vertical CTO role for Midmarket and Cybersecurity. He brings 16 years of experience building ML systems, including co-founding and serving as CTO at Bolster.AI and, before that, at Cisco Systems.
- Michael Thompson joined as the Vertical CTO of Industrials. Mike has 14 years of multidisciplinary engineering and product development experience across industrial process and equipment domains, previously serving as co-founder and CTO of PeopleFlo, which was acquired by Baker Hughes.
These technical leaders bring deep experience in enterprise systems, security, and applied AI, aligning closely with customer needs.
"Enterprise AI is moving fast, but the biggest gains are coming from vertical use cases where AI is built around real workflows," says Darren. "According to a recent study, enterprise AI spending reached $37 billion in 2025, with over half going to AI applications, and vertical AI grew nearly 3x year over year. That data reinforces our focus on building vertical AI solutions that work within the systems customers already use, whether in cybersecurity, industrial operations, or regulated environments."
Product Innovation Focused on Delivering Secure AI Where Work Happens
AISquared continues to advance its platform with a clear goal of bringing AI into existing business workflows in a secure and governed way. Recent product developments reinforce this direction, including:
- Launch of Sparx, delivering enterprise-grade AI for mid-market organizations with a no-code setup, simplified operations, and faster decision-making
- Enhancements to the AI workflow builder, enabling teams to build, test, and deploy AI workflows into existing business systems without heavy engineering effort
- Expanded governance, security, and compliance controls, supporting regulated industries and federal deployments
These capabilities help organizations move AI from experimentation into daily operations, while maintaining oversight and control.
Partnerships and Industry Recognition
AISquared continues to strengthen its partner ecosystem to extend value for customers. The company recently became an IBM Agent Connect Partner, combining Sparx and IBM watsonx Orchestrate to bring contextual AI insights directly into business workflows. The integration allows customers to access insights across systems from a single interface, reduce manual work and decision delays, and deploy enterprise-grade AI quickly with built-in security and governance.
AISquared's approach continues to gain recognition across the industry. Recent highlights include:
- Named one of the 10 Hottest AI Companies to Watch in 2025 and Stellar Startups 2025 by CRN
- Recognized in the Smart AI 100 Startups by Smart Venture Media
- Recognized as a DCA dual-use company, supporting both commercial and federal use cases
- Awarded as "High Performer" in G2's Grid for "Embedded Business Intelligence Software" Fall 2025
In our Federal business, we achieved "Awardable" status in the Department of War's "Tradewinds Solutions Marketplace", enabling faster procurement and expanded engagement with defense agencies. This momentum aligns with our mission of supporting federal agencies with their AI innovation and adoption goals for 2026.
With strong financial momentum, continued product innovation, and growing trust across enterprise and federal customers, AISquared is positioned to build on this progress as organizations look to deploy AI securely, at scale, and with measurable impact.
For more information about AISquared's solutions, visit aisquared.ai
About AISquared:
AISquared helps large organizations bring AI to where work happens. We do this by leveraging our SaaS or on-prem platform which combines data sources with advanced AI/ML functionality and embeds intelligent insights into business applications. Trusted by the largest financial institutions, the most complicated supply chain logistics companies, and the US Department of Defense, we enable seamless collaboration between data science teams and business users, driving faster, more informed decision-making.
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