E-commerce and trade

Thinking Machines Lab raises $2bn to build safer AI

Thinking Machines Lab, an AI startup founded earlier this year by former OpenAI executive Mira Murati, has raised $2 billion in new funding. The round, which values the company at $12 billion, was led by Andreessen Horowitz and backed by Nvidia, Cisco, AMD, and others.

The company aims to develop safer and more reliable AI systems by focusing on how people naturally interact with the world, including speech and vision. Its first product, due in the coming months, will offer open-source components designed to support researchers and startups.

At launch, nearly two-thirds of the team had previously worked at OpenAI, underscoring the company’s ambition to lead in the field of frontier AI. Murati said the startup plans to make its science publicly available to support understanding and transparency.

The investment comes amid a surge in AI-related funding, which accounted for over 64% of all US startup deal value in the first half of 2025. Growing interest in generative and multimodal AI continues to attract major capital despite wider concerns over tech sector spending.

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AI Appreciation Day highlights progress and growing concerns

AI is marking another milestone as experts worldwide reflect on its rapid rise during AI Appreciation Day. From reshaping business workflows to transforming customer experiences, AI’s presence is expanding — but so are concerns over its long-term implications.

Industry leaders point to AI’s growing role across sectors. Patrick Harrington from MetaRouter highlights how control over first-party data is now seen as key instead of just processing large datasets.

Vall Herard of Saifr adds that successful AI implementations depend on combining curated data with human oversight rather than relying purely on machine-driven systems.

Meanwhile, Paula Felstead from HBX Group believes AI could significantly enhance travel experiences, though scaling it across entire organisations remains a challenge.

Voice AI is changing industries that depend on customer interaction, according to Natalie Rutgers from Deepgram. Instead of complex interfaces, voice technology is improving communication in restaurants, hospitals, and banks.

At the same time, experts like Ivan Novikov from Wallarm stress the importance of securing AI systems and the APIs connecting them, as these form the backbone of modern AI services.

While some celebrate AI’s advances, others raise caution. SentinelOne’s Ezzeldin Hussein envisions AI becoming a trusted partner through responsible development rather than unchecked growth.

Naomi Buckwalter from Contrast Security warns that AI-generated code could open security gaps instead of fully replacing human engineering, while Geoff Burke from Object First notes that AI-powered cyberattacks are becoming inevitable for businesses unable to keep pace with evolving threats.

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Trump unveils AI economy with $100 billion investment push

Donald Trump revealed during the Pittsburgh, Pennsylvania Energy and Innovation Summit that the US will receive over $100 billion in investments to drive its AI economy and energy infrastructure.

The funding is set to create tens of thousands of jobs across the energy and AI sectors, with Pennsylvania positioned as a central hub.

Trump stated the US is already ‘way ahead of China’ in AI development, adding that staying in the lead will require expanding power production.

Instead of relying solely on renewables, Trump highlighted ‘clean, beautiful coal, oil, and nuclear energy as key pillars supporting AI-related growth.

Westinghouse plans to build several nuclear plants nationwide, while Knighthead Capital will invest $15 billion in North America’s largest natural gas power plant in Homer City, Pennsylvania.

Additionally, Google will revitalise two hydropower facilities within the state, contributing to the broader investment wave. Trump mentioned that 20 major technology and energy firms are preparing further commitments in Pennsylvania, reinforcing its role in what he calls the US ‘AI economy’.

The event, hosted by Senator Dave McCormick at Carnegie Mellon University, also featured discussions with Pennsylvania Governor Josh Shapiro.

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Meta opens audio lab to improve AI smart glasses

Meta has unveiled a £12 million audio research lab in Cambridge’s Ox‑Cam corridor, aimed at enhancing immersive sound for its Ray‑Ban Meta and upcoming Oakley Meta glasses. The facility includes advanced acoustic testing environments, motion‑tracked living spaces, and one of the world’s largest configurable reverberation chambers, enabling engineers to fine‑tune spatial audio through real‑world scenarios.

Designed to filter noise, focus on speech, and respond to head movement, the lab is developing adaptive audio intelligent enough to improve clarity in settings like busy streets or on public transport. Meta plans to integrate these features into its next generation of AR eyewear.

Officials say the lab represents a long‑term investment in UK engineering talent and bolsters the Oxford‑to‑Cambridge tech corridor. Meta’s global affairs lead and the Chancellor emphasised the significance of the investment, supported by a national £22 billion R&D strategy. This marks Meta’s largest overseas engineering base and reinforces its ambition to lead the global AI glasses market.

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Oracle commits billions to expand AI infrastructure in Europe

Oracle has confirmed a $3 billion investment in its AI and cloud infrastructure across Germany and the Netherlands over the next five years. The move aims to boost its capacity in Europe as demand for advanced computing services continues to rise.

The company plans to invest $2 billion in Germany and $1 billion in the Netherlands, joining other major tech firms ramping up data centre infrastructure. Oracle’s strategy reflects broader market trends, with companies like Meta and Amazon committing large sums to meet AI-driven cloud needs.

The firm expects capital expenditure to exceed $25 billion in fiscal 2026, primarily focused on expanding data centre capabilities for AI. Analysts say Oracle’s AI and cloud services are increasingly competitive with traditional software, fuelling its strong performance this year.

Oracle shares have climbed nearly 38% since January, with a recent regulatory filing revealing a future deal worth over $30 billion in annual revenue beginning in 2028. The company sees its growing infrastructure as key to accelerating revenue and profit.

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Trump launches $70 billion AI and energy investment plan

President Donald Trump has announced a $70 billion initiative to strengthen America’s energy and data infrastructure to meet growing AI-driven demand. The plan was revealed at Pittsburgh’s Pennsylvania Energy & Innovation Summit, with over 60 primary energy and tech CEOs in attendance.

The investment will prioritise US states such as Pennsylvania, Texas, and Georgia, where energy grids are increasingly under pressure due to rising data centre usage. Part of the funding will come from federal-private partnerships, alongside potential reforms led by the Department of Energy.

Analysts suggest the plan redirect federal support away from wind and solar energy in favour of nuclear and fossil fuel development. The proposal may also scale back green tax credits introduced under the Inflation Reduction Act, potentially affecting more than 300 gigawatts of renewable capacity.

The package includes a project to transform a disused steel mill in Aliquippa into a large-scale data centre hub, forming part of a broader strategy to establish new AI-energy corridors. Critics argue the plan could prioritise legacy systems over decarbonisation, even as AI pushes infrastructure to its limits.

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Gemini expands tokenised stocks for EU investors

Gemini has significantly expanded its tokenised stock offerings for European investors, adding 14 new major US company shares to its platform. Notable additions include Nike, McDonald’s, Starbucks, Coca-Cola, Uber, and Yum! Brands.

The move brings the total tokenised equities available to 37, providing EU users with a diverse range of investment options.

Tokens are issued by Dinari and minted on the Arbitrum blockchain, ensuring efficient and secure trading. Gemini enables 24/7 access to these tokenised stocks, charging a 1.49% fee per transaction.

The latest launch follows recent additions such as Apple, Tesla, Amazon, and Microsoft, reflecting Gemini’s commitment to broadening market access.

Meanwhile, Robinhood’s tokenised stocks, offering 215 tokens to European users, face regulatory hurdles after OpenAI rejected its shares. The company says the product provides indirect retail investor exposure.

Other crypto exchanges like Kraken and Bybit have also entered the tokenised equities space. Kraken’s trading interface resembles traditional crypto pairs, while Bybit offers its xStocks on both centralized and decentralised platforms.

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Europe builds quantum computers with glass and light

European researchers are building quantum computers using glass chips and photons instead of traditional silicon and electricity.

Led by the Italian Polytechnic University of Milan, the project is harnessing the power of light to deliver faster computing and solve real-world challenges.

These chips avoid energy loss by guiding photons through transparent glass, an approach designed to boost precision and reliability in quantum operations.

The collaborative effort includes specialists in photon detection, electronics, and quantum software, all working towards a functioning photonic quantum machine by 2026.

One of its first goals is to help design better lithium-ion batteries, which is vital for Europe’s shift to renewable energy and electric transport.

Europe’s broader ambition is to deploy a quantum-accelerated supercomputer by 2025 and grow a local quantum chip industry by 2030. While talent and innovation are strong, the project highlights a pressing need for greater private investment and commercial scale to match global rivals.

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Pentagon awards AI contracts to xAI and others after Grok controversy

The US Department of Defence has awarded contracts to four major AI firms, including Elon Musk’s xAI, as part of a strategy to boost military AI capabilities.

Each contract is valued at up to $200 million and involves developing advanced AI workflows for critical national security tasks.

Alongside xAI, Anthropic, Google, and OpenAI have also secured contracts. Pentagon officials said the deals aim to integrate commercial AI solutions into intelligence, business, and defence operations instead of relying solely on internal systems.

Chief Digital and AI Officer Doug Matty states that these technologies will help maintain the US’s strategic edge over rivals.

The decision comes as Musk’s AI company faces controversy after its Grok chatbot was reported to have published offensive content on social media. Critics, including Democratic lawmakers, have raised ethical concerns about awarding national security contracts to a company under public scrutiny.

xAI insists its Grok for Movement platform will help speed up government services and scientific innovation.

Despite political tensions and Musk’s past financial support for Donald Trump’s campaign, the Pentagon has formalised its relationship with xAI and other AI leaders instead of excluding them due to reputational risks.

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Nvidia to restart China AI chip sales after US talks

Nvidia has announced plans to resume sales of its H20 AI chip in China, following meetings between CEO Jensen Huang and US President Donald Trump in Beijing.

The move comes after US export controls previously banned sales of the chip on national security grounds, costing Nvidia an estimated $15 billion in lost revenue.

The company confirmed it is filing for licences with the US government to restart deliveries of the H20 graphics processing unit, expecting approval shortly.

Nvidia also revealed a new RTX Pro GPU designed specifically for China, compliant with US export rules, offering a lower-cost alternative instead of risking further restrictions.

Huang, attending a supply chain expo in Beijing, described China as essential to Nvidia’s growth, despite rising competition from local firms like Huawei.

Chinese companies remain highly dependent on Nvidia’s CUDA platform, while US lawmakers have raised concerns about Nvidia engaging with Chinese entities linked to military or intelligence services.

Nvidia’s return to the Chinese market comes as Washington and Beijing show signs of easing trade tensions, including relaxed rare earth export rules from China and restored chip design services from the US.

Analysts note, however, that Chinese firms are likely to keep diversifying suppliers instead of relying solely on US chips for supply chain security.

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