Artificial intelligence

Series K funding pushes Databricks valuation over $100bn

Databricks has secured a fresh funding round that pushes its valuation beyond $100bn, cementing its place among the world’s most valuable private tech firms. The Series K deal marks a sharp rise from the company’s $62bn figure in late 2024 and underscores investor confidence in its long-term AI strategy.

The new capital will accelerate Databricks’ global expansion, fuel acquisitions in the AI space, and support product innovation. Upcoming launches include Agent Bricks, a platform for enterprise-grade AI agents, and Lakebase, a new operational database that extends the company’s ecosystem.

Chief executive Ali Ghodsi said the round was oversubscribed, reflecting strong investor demand. He emphasised that businesses can leverage enterprise data to create secure AI apps and agents, noting that this momentum supports Databricks’ growth across 15,000 customers.

The company has also expanded its role in the broader AI ecosystem through partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir. Last year, it opened a European headquarters in London to cement the UK as a key market and strengthen ties with global enterprises.

Databricks has avoided confirming an IPO timeline, though Ghodsi told CNBC that investor appetite surged after fintech Figma’s listing. With Klarna now eyeing a return to New York, Databricks’ soaring valuation highlights how leading AI firms continue to attract capital even as market conditions shift.

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Quantum computing firm strengthens European presence

US quantum computing firm Strangeworks has expanded its European presence by acquiring German company Quantagonia. The merger allows organisations to tackle complex planning and optimisation using classical, hybrid, quantum, and quantum-inspired technologies.

Quantagonia, founded in 2021, develops AI-powered, quantum-ready planning tools that combine optimisation, AI, and natural language interfaces. The technology enables experts and non-technical users to solve problems across industries, including life sciences, finance, energy, and logistics.

The acquisition removes barriers to advanced decision-making and opens new go-to-market opportunities in previously underserved sectors.

The combined entity will merge Quantagonia’s solver engine and AI decision-making tools with Strangeworks’ AI and quantum infrastructure. The approach lets enterprises run multiple solvers in parallel and solve problems using natural language without technical expertise.

Strangeworks has strengthened its strategic European foothold, adding to its recent expansion in India and existing operations in the US and APAC. Executives said the merger boosts global growth and broadens access to sophisticated optimisation tools.

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Sam Altman says US is misjudging China’s AI rise

OpenAI chief Sam Altman has warned that the US may be underestimating China’s rapid advancement in AI.

Speaking to CNBC, Altman explained that China’s use of open-source models and its manufacturing capacity may allow it to move faster in some areas of development.

He questioned the effectiveness of export controls, noting that chip restrictions may not be enough to curb long-term innovation. Chinese firms like DeepSeek and MoonshotAI are gaining traction with open-weight models that rival US offerings in cost and capability.

Altman’s comments echo concerns voiced earlier by Nvidia’s CEO, who said firms like Huawei continue to grow despite restrictions.

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TeraWulf shifts power capacity toward AI with Google support

TeraWulf has secured a $3.2 billion financial backstop from Google to develop a 160-megawatt data centre at its Lake Mariner site in New York. Google will receive warrants for 32.5 million shares, lifting its stake in TeraWulf to about 14%.

Unlike its existing Bitcoin mining activities, the new deal focuses exclusively on AI and high-performance computing (HPC) workloads. TeraWulf confirmed it will maintain its Bitcoin mining operations but has no plans for expansion in that area.

The pivot reflects a broader trend in the mining industry, where companies increasingly shift capacity toward AI following the April 2024 halving that cut block rewards.

Executives highlighted that while Bitcoin mining offers immediate cash flow and grid flexibility, the long-term growth lies in powering AI and HPC demand. Research from VanEck suggests that if miners redirected just 20% of their power toward AI hosting, the industry could see $13.9 billion in additional annual revenue.

TeraWulf’s leadership said the partnership with Google positions the company as a key player in building next-generation digital infrastructure.

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Google Pixel 10 could transform smartphones with advanced AI features

Google’s upcoming Pixel 10 smartphones are tipped to place AI at the centre of the user experience, with three new features expected to redefine how people use their devices.

While hardware upgrades are anticipated at the Made by Google event, much of the excitement revolves around the AI tools that may debut.

One feature, called Help Me Edit, is designed for Google Photos. Instead of spending time on manual edits, users could describe the change they want, such as altering the colour of a car, and the AI would adjust instantly.

Expanding on the Pixel 9’s generative tools, it promises far greater control and speed.

Another addition, Camera Coach, could offer real-time guidance on photography. Using Google’s Gemini AI, the phone may provide step-by-step advice on framing, lighting, and composition, acting as a digital photography tutor.

Finally, Pixel Sense is rumoured to be a proactive personal assistant that anticipates user needs. Learning patterns from apps such as Gmail and Calendar, it could deliver predictive suggestions and take actions across third-party services, bringing the smartphone closer to a truly adaptive companion.

These features suggest that Google is betting heavily on AI to give the Pixel 10 a competitive edge.

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Google adds Gemini AI audio to Docs for better accessibility

Google has introduced a new feature in Docs that allows Workspace subscribers to turn written documents into audio using its Gemini AI assistant.

The tool produces natural-sounding voices, offers playback controls such as pausing and rewinding, and even highlights text as it is read. The rollout marks a step toward transforming Docs from a simple text editor into a multimedia platform that serves both accessibility and productivity needs.

Available under the Tools menu, the feature caters to auditory learners, professionals on the move, and users with visual impairments.

Gemini provides several AI voice options and synchronises narration with text, offering an audiobook-like experience that could change how people review drafts, collaborate remotely, or proofread reports.

The audio tool is limited to select Workspace plans, including Business, Enterprise, and Education, reflecting Google’s strategy of tying advanced AI functions to premium tiers.

Analysts believe the integration could encourage organisations to upgrade, especially as Google seeks to keep pace with rivals such as Microsoft, which has similar Copilot features in Office.

Looking ahead, experts suggest Gemini’s audio capabilities could expand to real-time translation and interactive playback.

By weaving audio into Docs, Google strengthens its position in the growing competition over AI-powered productivity while pushing for more inclusive and efficient workflows.

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Google sees growing demand for cloud data sovereignty

Google’s Cloud Experience lead Hayete Gallot says developer interest in sovereign cloud solutions is rising sharply amid AI concerns. More clients are asking to control how and where their data is stored, processed, and encrypted within public cloud environments.

Microsoft said it could not guarantee full cloud data sovereignty in July, increasing pressure on rivals to offer stronger protections.

Gallot noted that sovereignty is more than location. Cybersecurity measures such as encryption, ownership, and administrative access are now top priorities for businesses.

On AI, Gallot dismissed fears that assistants will replace developers, saying skills like prompt writing still require critical thinking.

She believes modern developers must adapt, comparing today’s AI tools to learning older languages like Pascal or Fortran.

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Musk acknowledges value in ChatGPT-5’s modesty after public spat

Elon Musk has taken an unexpected conciliatory turn in his feud with Sam Altman by praising a ChatGPT-5 response, ‘I don’t know’, as more valuable than overconfident answers. Musk described it as ‘a great answer’ from the AI chatbot.

Initially sparked by Musk accusing Apple of favouring ChatGPT in App Store rankings and Altman firing back with claims of manipulation on X, the feud has taken on new dimensions as AI itself seems to weigh in.

At one point, xAI’s Grok chat assistant sided with Altman, while ChatGPT offered a supportive nod to Musk. These chatbot alignments have introduced confusion and irony into a clash already rich with irony.

Musk’s praise of a modest AI response contrasts sharply with the often intense claims of supremacy. It signals a rare acknowledgement of restraint and clarity, even from an avowed critic of OpenAI.

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Meta brings AI translations with lip syncing to Instagram and Facebook

Meta has introduced AI-powered translation tools for creators on Instagram and Facebook, allowing reels to be dubbed into other languages with automatic lip syncing.

The technology uses the creator’s voice instead of a generic substitute, ensuring tone and style remain natural while lip movements match the dubbed track.

The feature currently supports English-to-Spanish and Spanish-to-English, with more languages expected soon. On Facebook, it is limited to creators with at least 1,000 followers, while all public Instagram accounts can use it.

Viewers automatically see reels in their preferred language, although translations can be switched off in settings.

Through Meta Business Suite, creators can also upload up to 20 custom audio tracks per reel, offering manual control instead of relying only on automated translations. Audience insights segmented by language allow performance tracking across regions, helping creators expand their reach.

Meta has advised creators to prioritise face-to-camera reels with clear speech instead of noisy or overlapping dialogue.

The rollout follows a significant update to Meta’s Edits app, which added new editing tools such as real-time previews, silence-cutting and over 150 fresh fonts to improve the Reels production process.

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Arm to build its own chips with AI focus

Arm Holdings has hired Amazon’s AI chip lead, Rami Sinno, to design its own complete chips. Known for Amazon’s Trainium and Inferentia processors, Sinno brings key expertise to Arm’s new direction in chip manufacturing.

Arm has traditionally licensed chip designs to companies like Apple and Nvidia, but now aims to build chips and complete systems. The firm is expanding teams with experience from HPE, Intel and Qualcomm, signalling a significant shift in its business model.

Backed by SoftBank, Arm plans to invest profits in chip development to rival Nvidia and reduce reliance on traditional licensing.

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