Sustainable development

Google’s Wiz acquisition propels Israel’s tech sector to new heights

Israel’s high-tech sector surged into 2025 with remarkable momentum, instead of continuing the two-year slump in funding.

According to new figures from Startup Nation Central, private Israeli tech firms raised $3.2 billion through 185 deals in the first quarter, rather than declining as in previous periods. This marked a 12% rise from the previous quarter and a 14% increase year on year.

The most striking figure came from mergers and acquisitions, which reached a record-breaking $35.9 billion across 38 deals.

It was driven by Google’s $32 billion acquisition of cybersecurity firm Wiz—the biggest tech exit in Israeli history and one of the largest globally, instead of a more modest transaction typical of previous years.

Even excluding the Wiz acquisition, the M&A volume still hit $3.9 billion—its highest since the third quarter of 2023. Instead of reflecting a single outlier, the strong figures suggest a broader resurgence in investor confidence and corporate activity.

It signals that global interest in Israel’s innovation sector is gaining strength again, instead of continuing to wane as seen over the past two years.

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Aetherflux raises $50 million for space solar power project

Aetherflux, the space solar startup founded by Baiju Bhatt, the billionaire co-founder of Robinhood, has secured $50 million in Series A funding to advance its first low Earth orbit demonstration scheduled for 2026.

The California-based startup, which emerged from stealth in October, plans to deploy a constellation of satellites capable of collecting solar energy and transmitting it to Earth.

The concept, inspired by Isaac Asimov’s 1941 short story ‘Reason,’ is set to change the way power is sourced globally. Bhatt is dedicated to transforming this science fiction-inspired idea into reality.

With the newly raised capital, Aetherflux aims to hire more engineers and build the technology needed for its missions. The company will use the funds to develop its satellite payload and improve infrastructure.

The satellites will send power back to Earth via lasers, with energy captured by ground stations featuring photovoltaic arrays. These stations will store energy for future use and may one day deliver electricity to remote areas.

Bhatt’s team, consisting of experts from NASA, SpaceX, and the US Navy, is also focused on building the first ground station. While a location hasn’t been chosen, military sites are being considered for their controlled airspace.

If successful, Aetherflux will pave the way for scalable space-based solar power systems.

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Deutsche Telekom expands partnership with Google Cloud

Deutsche Telekom has strengthened its collaboration with Google, moving more of its services to the Google Cloud platform as part of its transformation into an ‘AI-first company.’ The expanded partnership aims to improve the agility and efficiency of Deutsche Telekom’s operations through AI-driven solutions.

Stefan Schloter, Chief Infrastructure Officer for Europe at Deutsche Telekom, highlighted how leveraging data and AI will enhance digital solutions across business entities, software engineering, and customer interfaces.

The MyMagenta app, for example, will integrate Google’s AI-powered Gemini assistant, further improving customer experience.

Google Cloud will also serve as the technical foundation of Deutsche Telekom’s new AI platform, the ‘One Data Ecosystem.’ However, this platform consolidates data systems and enhances data processing speed while ensuring compliance with privacy and data-sharing regulations.

Marianne Janik, Vice President of Google Cloud for Northern Europe, expressed excitement about the partnership, noting how cloud technology is pivotal for communications providers in driving innovation, flexibility, and growth for enhanced user experiences.

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Microsoft rethinks AI data centre strategy amid market shifts

Microsoft has reportedly scaled back or delayed several major data centre projects, just three months after announcing plans to invest $80 billion in AI infrastructure through the current fiscal year.

According to Bloomberg, the company has paused developments in multiple locations, including Australia, Indonesia, the United Kingdom, and US states such as Illinois, North Dakota, and Wisconsin.

Instead of denying the report, Microsoft confirmed adjustments to its plans, citing the need for long-term flexibility. A spokesperson said the company continuously reviews future infrastructure needs to ensure alignment with growing AI demand, adding that the changes reflect Microsoft’s adaptable strategy.

The halted projects include negotiations for high-performance AI chip facilities in the UK and a site near Chicago, along with construction delays in Jakarta and Wisconsin.

These moves come amid growing scrutiny over whether the AI sector is entering a bubble, especially as emerging models challenge the assumption that vast computing power is always necessary for innovation.

Instead of sticking to high-cost development, Microsoft may be responding to a new trend: efficient, lower-cost AI models from Chinese firms that rival those of Western tech giants.

With AI development costs dropping and access expanding, Microsoft’s strategic pause could reflect a shift towards a more sustainable and agile future in AI infrastructure.

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India among few developing nations with strong AI investment

India and China were the only developing nations to attract notable private investment in AI in 2023, according to the UN’s Technology and Innovation Report 2025. Instead of the US simply leading the field, it dominated with $67 billion in AI investment, accounting for 70 per cent of the global total.

China followed with $7.8 billion, while India ranked tenth worldwide with $1.4 billion. Instead of being evenly distributed, access to AI infrastructure and research remains heavily concentrated in a handful of countries, mainly the US and China.

India’s rise in the AI space stems from policy-driven innovation and education rather than organic growth alone. It climbed to 36th place out of 170 on the UNCTAD Frontier Technologies Readiness Index in 2024, improving from 48th in 2022.

Instead of only focusing on economic size, the index measures readiness through ICT availability, skills, R&D, industrial capacity, and financing. India performed well in R&D and industrial capacity but fell behind in ICT access and skill development.

India has supported its AI ecosystem through collaboration between the government, academia, and the private sector. The country hosts a large developer base, around 13 million, and contributes actively to generative AI projects on platforms like GitHub.

Programmes such as the India AI Mission aim to boost AI education and innovation in smaller cities, instead of keeping progress limited to major urban centres. Institutes like IIT Hyderabad and IIT Kharagpur were named among the country’s key centres of AI excellence.

Still, India faces challenges in expanding its AI capabilities across all sectors. Instead of allowing AI to widen inequalities, the report urges investment in workforce reskilling and inclusion. While AI can boost productivity, it may also displace jobs unless paired with supportive policies.

The technology, if harnessed wisely, could create new industries and strengthen employment rather than replace it.

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Siemens buys Dotmatics to boost AI drug research

Siemens announced on Wednesday its acquisition of US software firm Dotmatics for $5.1 billion, aiming to enhance its AI capabilities for drug discovery.

The German company described the deal as complementary to its expansion into Life Sciences, positioning itself in a market increasingly reliant on digital transformation to meet growing medical needs.

Siemens expects Dotmatics to generate $100 million annually in the mid-term, rising to $500 million in the long run, and said the acquisition would be immediately profitable. The transaction is set to be completed in the first half of next year.

Founded in 2005, Dotmatics employs 800 people and specialises in AI-driven R&D software designed to accelerate drug research. This move follows Siemens’ recent $10 billion purchase of another AI-powered US software firm, Altair Engineering.

As Siemens’ industrial software faces slowing demand, its digital division has been driving revenue growth instead of its traditional factory automation products. The company, Germany’s second-largest by market value, continues expanding its software portfolio to capitalise on AI-driven innovations.

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Anthropic introduces Claude to revolutionise learning and teaching

Claude for Education, launched by Anthropic, introduces a specialised AI for higher education, aiming to support universities in teaching, learning, and administration.

The initiative includes key features like Learning mode, full campus access for top universities, and partnerships with organisations like Internet2 and Instructure to integrate AI into academic tools.

Learning mode helps students develop critical thinking by guiding them through problems with Socratic questioning instead of providing direct answers. It also offers templates for research and study.

Key academic partnerships include Northeastern University, London School of Economics, and Champlain College, all of which will benefit from campus-wide access to Claude. These partnerships ensure AI’s responsible integration and accessibility for all students.

New student programs, such as the Claude Campus Ambassadors and API credit initiatives, provide opportunities for students to engage with and build on AI tools.

The launch also coincides with efforts to integrate AI into the academic plans of institutions like Northeastern University, which is pioneering AI adoption in higher education with its ‘Northeastern 2025’ initiative.

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OpenAI CEO says India leads in AI creativity

Sam Altman sparked interest among Indian users on X after praising the country’s rapid AI adoption and sharing an AI-generated image of himself playing cricket. In his 2 April post, the OpenAI CEO called India’s AI creativity an ‘explosion,’ claiming the country was outpacing the world in adoption rates.

Users questioned why Altman singled out India, with some turning to AI chatbots like Perplexity and Grok for verification. His comments followed a February visit to India, where he met IT Minister Ashwini Vaishnaw and highlighted India as OpenAI’s second-largest market.

Altman’s remarks also came shortly after OpenAI’s GPT-4o update, which enhanced AI-generated images and illustrations. To showcase this, he shared an anime-style image of himself as a cricket player, sporting a Team India jersey.

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Bill Gates foresees AI-driven two-day work weeks

Bill Gates has predicted that AI will reduce work hours significantly, with two-day work weeks becoming a reality in the next decade.

His vision contrasts with views in India, where figures like Narayana Murthy and S.N. Subrahmanyan argue for longer work hours instead of reducing them, believing they are crucial for economic growth.

However, Harsh Goenka and Harish Mariwala, who focus on ambition and productivity instead of hours worked, have a different take. They stress the importance of quality instead of quantity in work hours.

Studies, such as those from Iceland and New Zealand, suggest that reduced working hours can lead to higher productivity and a better work-life balance.

In Iceland, trials reducing weekly hours from 40 to 35 saw workers feeling more energised and less stressed, while New Zealand’s Perpetual Guardian found that employees completed tasks in fewer hours, raising engagement and reducing stress.

Despite Gates’ prediction, the idea of working only two days a week seems extreme, especially considering his past work ethic.

Gates himself worked long hours instead of fewer ones during his early career, fearing mistakes could cost him his company, but he acknowledges that AI and technology have shifted the landscape.

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Meta’s AI research VP Joelle Pineau announces departure

Joelle Pineau, the Vice President of AI research at Meta, announced she will be leaving the company by the end of May, after nearly eight years with the organisation.

Pineau, who joined Meta in 2017, has overseen key AI initiatives, including the FAIR research unit, PyTorch, and the Llama AI models.

In a LinkedIn post, Pineau reflected on her time at Meta, mentioning the creation of groundbreaking AI projects such as PyTorch, FAISS, and Roberta.

She expressed gratitude for the opportunity to work alongside top AI researchers, with the aim of accelerating innovation through open-source contributions.

Pineau, also a professor at McGill University, stated that after her departure, she plans to take some time to reflect before pursuing new ventures. Her departure comes as Meta intensifies its focus on AI, including the recent launch of its Meta AI chatbot in Europe.

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