Digital business models

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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Bitcoin and Ether fall ahead of Fed speech

Bitcoin and Ether fell on Tuesday as traders took profits following a recent market rally and positioned themselves ahead of upcoming macroeconomic events. Bitcoin dropped 2.78% to $113,234, briefly trading as low as $112,709, while Ether fell 5.44% to $4,108.

Analysts attribute the declines to profit-taking and leveraged liquidations after Bitcoin reached an all-time high earlier this month. Market participants take a wait-and-see approach, with ether key levels at $4,200 support and $3,900 downside risk.

Spot Bitcoin and Ether ETFs are also being closely monitored. ETFs have recently seen net outflows after strong inflows in July and early August, signalling cautious investor sentiment.

Traders are now focused on July’s Federal Open Market Committee meeting minutes. Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday could trigger sharp market movements depending on policy signals.

Investors remain cautious, positioning for Powell’s remarks while weighing the potential impact of expected rate cuts in September. Analysts suggest the market may consolidate until greater clarity emerges on monetary policy.

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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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UK colleges hit by phishing incident

Weymouth and Kingston Maurward College in Dorset is investigating a recent phishing attack that compromised several email accounts. The breach occurred on Friday, 15 August, during the summer holidays.

Spam emails were sent from affected accounts, though the college confirmed that personal data exposure was minimal.

The compromised accounts may have contained contact information from anyone who previously communicated with the college. Early detection allowed the college to lock down affected accounts promptly, limiting the impact.

A full investigation is ongoing, with additional security measures now in place to prevent similar incidents. The matter has been reported to the Information Commissioner’s Office (ICO).

Phishing attacks involve criminals impersonating trusted entities to trick individuals into revealing sensitive information such as passwords or personal data. The college reassured students, staff, and partners that swift action and robust systems limited the disruption.

The colleges, which merged just over a year ago, recently received a ‘Good’ rating across all areas in an Ofsted inspection, reflecting strong governance and oversight amid the cybersecurity incident.

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The first state to issue a government-backed stablecoin

Wyoming has launched the Frontier Stable Token (FRNT), becoming the first US state to issue a government-backed stablecoin. The initiative aims to modernise payments for citizens and businesses, offering a secure and efficient way to transact.

The token is fully reserved, backed by dollars and short-term treasuries held in trust, and structured to be 2% over-collateralised. State officials emphasised that this design strengthens confidence and avoids the risks often linked to privately issued stablecoins.

The launch was announced during the Wyoming Blockchain Symposium and coincided with new federal legislation, the GENIUS Act, which sets more explicit rules for stablecoin issuers.

Ahead of the rollout, Wyoming tested a blockchain-based payment to a government contractor, proving the token’s ability to reduce costs and streamline transactions.

By introducing FRNT, Wyoming has positioned itself as a digital asset pioneer within the US. The move reflects growing confidence in stablecoins, which have already reached a $260 billion market and could expand to $1 trillion within years.

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EU and Bangladesh strengthen cooperation on cybersecurity and digital economy

The EU has engaged in talks with the Bangladesh Telecommunication Regulatory Commission to strengthen cooperation on data protection, cybersecurity, and the country’s digital economy.

The meeting was led by EU Ambassador Michael Miller and BTRC Chairman Major General (retd) Md Emdad ul Bari.

The EU emphasised safeguarding fundamental rights while encouraging innovation and investment. With opportunities in broadband expansion, 5G deployment, and last-mile connectivity, the EU reaffirmed its commitment to supporting Bangladesh’s vision for a secure and inclusive digital future.

Both parties agreed to deepen collaboration, with the EU offering technical expertise under its Global Gateway strategy to help Bangladesh build a safer and more connected digital landscape.

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