TechCrunch : SpaceX launches Starship V3 for the first time, but loses booster o

SpaceX launches Starship V3 for the first time, but loses booster on return

SpaceX has launched the upgraded third version of its Starship rocket for the first time, though the test launch did not go perfectly for Elon Musk’s spaceflight company.

The 407-foot rocket — the most powerful ever built — lifted off from SpaceX’s company town Starbase, Texas, at 5:30 p.m. local time. Just a few minutes later, the upper stage ship separated from the Super Heavy booster and continued on into space.

The booster pitched away from the Starship vehicle and headed back to Earth, where it was supposed to perform a simulated landing in the Gulf of Mexico. But the booster’s engines did not properly re-ignite for the sustained burn that is meant to deliver it back to the launch site. The booster then tumbled down to the water, where it likely exploded.

Starship, meanwhile, lost one of its six Raptor engines as it ascended into space. But it successfully deployed all 20 of the Starlink satellite simulators along with two modified Starlink satellites meant to record footage of Starship’s exterior. Roughly one hour after liftoff, Starship simulated a landing in the Indian Ocean, before tipping over and exploding as expected.

While it didn’t go exactly according to plan, this was an important test launch for SpaceX. It was the first real shakedown of the upgraded Starship V3 hardware, which has been in development for months. The company was also testing out an all-new launchpad at Starbase that it’s been developing and building for years.

The test launch also comes at a historical inflection point for SpaceX as a company. Its IPO filing was made public this week, and SpaceX is expected to list on the Nasdaq in mid-June. The IPO is reportedly supposed to raise around $75 billion for SpaceX, which the company plans to use to fuel further development, massive AI ambitions, and to pay off some of the debt associated with xAI and Musk’s social media company X. (That means this could also be the last Starship test launch to happen without a stock market reaction.)

SpaceX has spent years and billions of dollars developing Starship, which it sees as crucial to its mission of making life multi-planetary. The company plans to use Starship for NASA missions to the moon, and eventually Mars. But the big job it needs to perform in the near-term is delivering more advanced Starlink satellites to Earth orbit, as Starlink is the only profitable part of SpaceX’s business.

This was the first Starship flight since October 2025. SpaceX had planned to attempt launching Starship V3 earlier, but one of the first upgraded boosters suffered an explosion during testing in November. SpaceX first attempted the launch on Thursday but ultimately had to delay it as a hydraulic pin on the launch tower arm refused to retract, according to Musk.

This new version of Starship features SpaceX’s third-generation Raptor engines, which have more thrust and a far simpler design. The new booster is designed for faster takeoffs and easier catches by the launch tower.

CrunchBase: The Week’s 10 Biggest Funding Rounds: Massive Deals For Medical Devi

The Week’s 10 Biggest Funding Rounds: Massive Deals For Medical Devices, Futuristic AI Gadgets And Frontier Labs Lead

Physical tech is back, at least judging by this week’s largest U.S. funding deals. The biggest of all was a $1.5 billion corporate round for a medical device company that develops implants and treatment systems for musculoskeletal disorders. It was followed by an enormous Series A round, backed by a bevy of big-name investors, for Hark, a 1-year-old artificial intelligence startup that says it’s developing personalized AI devices. Along with the usual heavy dose of AI, this week’s list also includes large deals for aerospace and defense, fintech, and retail technology. Let’s dive in.

1. MiRus, $1.5B, healthcare: MiRus raised a massive $1.5 billion corporate round led by Boston Scientific as strategic investors continue betting on next-generation orthopedic and spinal technologies. The Marietta, Georgia-based company has now raised $1.6 billion to date, per Crunchbase. The deal comes with a 34% equity stake for Boston Scientific.

2. Hark, $700M, artificial intelligence: AI startup Hark landed a huge $700 million Series A led by Parkway Venture Capital, with participation from a long list of investors including chip giants Nvidia, Intel Capital, AMD and Qualcomm Ventures, as well as ARK Investment Management, Ventures, Prime Movers Lab, Salesforce Ventures and Align Ventures. The San Jose, California-based company says it’s building “advanced personalized intelligence and next-generation hardware” and plans to release some kind of product later this summer.

3. Modal Labs, $355M, AI infrastructure and developer tools: New York-based Modal Labs raised $355 million in a Series C round led by General Catalyst and Redpoint, with participation from Bain Capital Ventures, Menlo Ventures and Accel. The company provides serverless cloud computing tools and GPU access for running AI models and testing AI-generated code. Its latest round is reportedly at a $4.65 billion valuation. CEO Erik Bernhardsson ​told Reuters that Modal’s ARR has soared to $300 million, up from about $60 million in September, as enterprise AI coding becomes widespread.

4. (tied) Decart, $300M, artificial intelligence: Frontier lab Decart raised $300 million in a round led by Radical Ventures that reportedly values it at nearly $4 billion. The deal also received backing from another long list of investors including venture firms Benchmark and Sequoia Capital, AI researcher Andrej Karpathy and corporate investors Nvidia, Adobe Ventures and Toyota Ventures. The startup, based in San Francisco and Tel Aviv, develops generative AI models and infrastructure, and has now raised roughly $456 million to date as investors continue pouring capital into foundational AI technologies.

4. (tied) Amca, $300M, aerospace and defense: El Segundo, California-based Amca raised $300 million in a Series B led by Caffeinated Capital, alongside investors including Andreessen Horowitz and Construct Capital. The company focuses on aerospace manufacturing and supply-chain technologies, an area drawing increased venture interest amid renewed defense-tech spending. Amca has raised $376.5 million overall, per Crunchbase. Its latest round reportedly comes at a $1 billion-plus valuation.

6. Exa, $250M, search and generative AI: AI search startup Exa secured $250 million at a $2.2 billion valuation in a Series C round led by Andreessen Horowitz. Based in San Francisco, the company develops AI-native search infrastructure designed for agents and large language model applications. The latest raise brings Exa’s total funding to $357 million and comes as competition intensifies around AI retrieval and search tools.

7. Armada, $230M, edge computing and AI infrastructure: Armada raised $230 million in fresh funding at a $2.2 billion valuation. The Series B deal was led by 8090 Industries, BlackRock and Overmatch Ventures, with participation from other investors including Lux Capital and Silent Ventures. The San Francisco-based company develops edge computing and AI infrastructure systems designed for remote and industrial environments. The round brings its total funding to $469 million, per Crunchbase.

8. Mercury, $200M, fintech: Mercury raised $200 million at a $5.2 billion valuation in a Series D round led by TCV. Returning backers Andreessen Horowitz, Coatue, CRV, Sequoia Capital, Sapphire Ventures and Spark Capital also participated. The San Francisco-based company provides banking and financial workflow software for companies and has now raised about $657 million to date. Its latest round comes amid a broader uptick in fintech funding, including strong investor interest in digital banking platforms serving startups and businesses.

9. Radar, $170M, retail technology: New York-based Radar secured $170 million in funding at a $1 billion valuation. The Series B round was led by Gideon Strategic Partners and Nimble Partners, with Align Ventures participating. The company develops AI technology for brick-and-mortar stores that uses overhead RFID sensors, software and analytics to give retailers real-time inventory visibility with item-level tracking accuracy. The company said its platform is deployed in more than 1,400 stores for customers including American Eagle Outfitters and Old Navy. It has raised nearly $310 million to date, per Crunchbase.

10. Farther, $150M, wealth management: Farther raised a $150 million Series D led by General Atlantic as investors continue backing platforms modernizing financial advisory services. The San Francisco-based company provides technology-enabled wealth management tools and has raised approximately $268 million to date. Farther didn’t reveal its valuation with the latest raise, saying only that it is “now a unicorn.”

The Information : Why SpaceX is Worth $700 Billion, Not $1.75 Trillion

Why SpaceX is Worth $700 Billion, Not $1.75 Trillion

If SpaceX pulls off what is widely described in the news media as the “largest IPO in history” next month, it will be a testament to Elon Musk’s skills as a salesman. The company’s newly public IPO prospectus makes it plain that SpaceX is largely a telecom firm with a rocket launch business on the side, with future growth coming from a cloud computing arm. Valued in line with its peers in those businesses, it would probably be worth no more than $700 billion (and that’s being generous).

In other words, anyone who buys into the company at the vaunted $1.75 trillion valuation (that’s at least what bankers are hoping SpaceX will achieve) is paying $1 trillion for the promise that SpaceX will overcome major technological hurdles and launch an orbital cloud-computing service, as well as industrialize the moon. It’s admirable Musk is shooting for the stars—but investors need to know what they’re getting into.

The prospectus breaks down SpaceX’s businesses by segment. About 60% of last year’s revenue came from the Starlink satellite broadband business. It grew revenue 32% in the first quarter, which suggests revenue could grow to $15 billion this year. But its long-term growth outlook is cloudy. Starlink is a niche service—it only has 10.3 million subscribers globally, compared to the 29 million U.S. subscribers just one broadband provider, Comcast, reports.

Cable firms like Comcast trade at around 2 times forward revenue. Even if you assume Starlink can keep growing at a double-digit percentage rate for a couple more years, it arguably is worth only about 10 times revenue, which implies a value around $150 billion.

Then there’s SpaceX’s rocket launch segment, whose revenue last year was $4 billion. The business shrank in the first quarter, but that’s likely a blip due to the timing of launches. More importantly, the space segment’s growth should accelerate once SpaceX gets its Starship rocket into service, but the timing on that is very up in the air. (The latest test launch, due on Thursday evening, was delayed).

Let’s use last year’s figure as a valuation basis. While SpaceX has no clear-cut rivals, given its stranglehold on the rocket launch business, my colleague Theo Wayt recently wrote that the biggest public competitor focused solely on space is Rocket Lab, which is trading at 73 times next year’s revenue, according to Koyfin data. That's way above any other space company, to be sure. But to be generous to SpaceX, given the potential of Starship, we’ll apply it to SpaceX’s space segment. That values the space segment at close to $300 billion.

And finally there’s SpaceX’s AI unit, a mix of the advertising business in X (formerly known as Twitter) and AI revenue. Advertising revenue last year was just $1.8 billion, a slight increase on 2024. That’s unlikely to grow much in the coming years (in fact, ad revenue fell in the first quarter). X’s performance brings to mind Snap, whose ad business is also not growing much, and that company is trading at 1.6 times next year’s revenue. Applying Snap’s multiple to X implies a valuation of just $3 billion.

The AI unit also had revenue of $1.35 billion from AI services last year, and it is likely to grow sharply now that SpaceX has started renting out AI servers to firms like Anthropic. We know from the prospectus that Anthropic is paying $1.25 billion a month for much of SpaceX’s capacity. That deal starts around now, so it will lift the AI unit’s revenue meaningfully this year.

Given that payment, the infrastructure business should be able to generate $20 billion a year going forward. Rivals CoreWeave and Nebius are trading at 5.8 and 10.7 times forward sales, respectively: Applying the average multiple of these two to SpaceX’s cloud unit suggests it is worth $165 billion.

Then there’s AI coding assistant Cursor, which SpaceX has an option to buy for $60 billion. The Information reported last month that Cursor had hit an annualized revenue run rate of $2.7 billion in March and was expected to lift that to $7 billion by year’s end. Given the competition Cursor faces from a range of other coding assistants, it’s hard to see that Cursor is worth more than what SpaceX is paying.

If we include Cursor, the total of this back-of-the-envelope math is $678 billion, which some would say is too high. For instance, Ross Gerber, a SpaceX investor who runs investment firm Gerber Kawasaki, said on The Information’s TITV today the “core business is worth $500 billion” but investors add another trillion dollars in value “just because it’s Elon.”

IPO Mania
IPOs are back! Oura said on Wednesday it had filed confidential paperwork with the Securities and Exchange Commission to go public, while crypto exchange Blockchain did the same thing on Thursday. OpenAI is expected to follow suit before too long.

(See our story today about OpenAI’s first-quarter revenue and this one about Sam Altman’s cautionary comments to staff about timing of an IPO.) And of course SpaceX made its IPO prospectus public, setting the scene for a mid-June offering.

Oura, which makes a ring people wear to track their health, announced on Wednesday it was “on pace to surpass five million” paid subscribers this quarter, “up 4x over the past two years.” It was valued most recently at $11 billion, according to PitchBook. The timing for an IPO seems right—health-based wearables are a thing nowadays. Shares of its closest public competitor, Garmin, are up 18.6% so far this year.

Prospects for Blockchain, a crypto brokerage, are a bit different given the poor crypto market. Rivals like Coinbase, Gemini and Crypto.com have been cutting jobs. Blockchain’s valuation has fallen to $6.9 billion as of April 2025, we reported today, about half its 2022 valuation. Our report also noted that two other crypto firms, Kraken and Grayscale, filed confidentially to go public last year, but neither one has moved forward.

If both proceed, they’d likely end up going public in the summer, around the same time OpenAI could hit the market. But nothing is guaranteed.

The I,nformation : Microsoft Opens a New Front in the Fight Over Data for AI Age

Microsoft Opens a New Front in the Fight Over Data for AI Agents

The Takeaway
  • Microsoft blocked partners including Databricks from connecting their data management tools to its popular Power BI product.
  • Microsoft said it acted over concerns about reliability, while others see it as part of a fight for control of “semantic layer” tools.
  • The semantic layer is increasingly vital for making AI agents more accurate and cheaper to run.

Microsoft has opened a new front in the AI data wars, blocking partners from connecting their data management tools to a popular product as it tries to defend its business software strength in the era of AI agents.

The friction centers on Power BI, a Microsoft product nearly all Fortune 500 firms use to analyze data about their operations in charts and other visual formats. Databricks, a longtime Microsoft partner that sells tools for managing data and building AI applications, in early March began testing a new feature that makes it easier for its customers to connect information on its platform to such visualization tools.

Weeks into the testing, Microsoft abruptly blocked the feature, causing the reports customers had built with it to immediately stop working, said two Databricks salespeople and consultants who work with customers.

While this was not the feature’s stated purpose, it essentially made it easier for Power BI customers to manage their data and build AI agents in Databricks instead of a competing data management offering from Microsoft, called Fabric. The feature saw widespread adoption, the Databricks salespeople said.

A Microsoft spokesperson said the company’s move was driven by concerns over accuracy and reliability issues stemming from the new feature, not by a change in competitive strategy. Many in the industry saw it as an effort to box out Databricks, Snowflake and others from a data management tool known as a semantic layer, which customers use to standardize definitions for business metrics such as revenue and customers. Semantic layers, which have been around for decades, are now emerging as a way to make AI agents more accurate and cheaper to run.

“Breaking the Databricks connector tells you exactly where Microsoft thinks the next platform war will be fought,” said Shehab Amin, CEO and co-founder of LakeSail, a startup that speeds up data processing for AI agents. “Microsoft’s playbook for the past 30 years has been to control products where customers start their work and then steer them to buy everything else from Microsoft.”

Microsoft’s decision has ramifications for other enterprise tech companies. Database provider Snowflake has thousands of customers that want to use its semantic layer with Power BI, Josh Klahr, the company’s head of product management for AI-powered business information, said via email.

Microsoft and other established business software companies are under increasing threat from AI agents’ ability to automate functions such as making the kinds of reports Power BI produces. They worry that customers might use AI agents to pull their data out of enterprise apps like Power BI and analyze it with AI from other providers.

Fears of such a shift have driven Microsoft’s stock down nearly 25% from its all-time high last year. The company has responded to the threat by adding more AI agent features directly into applications such as Microsoft 365 that may curb customers’ need to use competing agents. It has also previewed a feature called Work IQ that will let customers access data from their Microsoft applications and use them in other apps, such as third-party agents, but it hasn’t said how much it will charge customers for such data usage.

Why Data Labels Are Critical for Agents

AI agents need clear, well-labeled data to function effectively. The value of such data is why some business software providers are limiting access for other companies’ agents to the customer data they host or are setting up tollbooths to collect revenue on that access.

Semantic layers are part of a class of tools for creating context-rich data. These layers could hold the key to developing agents that can accurately handle multistep tasks such as routing invoices and processing new employees. Other such tools include knowledge graphs and ontologies, a philosophical term Palantir has helped popularize in the context of AI work.


Semantic layers help companies deal with the ambiguity of raw information. Sales data, for example, can include gross revenue, net revenue or invoiced revenue. By establishing standard definitions, semantic layers prevent confusion that could arise from different departments like finance and marketing having their own metrics.

At Google Cloud, some customers that use semantic layers to develop agents are seeing conversational accuracy rates of more than 90%, compared to between 60% and 70% when they don’t use the layers, said Yasmeen Ahmad, a managing director for the Alphabet unit.

Companies typically build semantic layers using employees from different departments, and it can take months to complete the process. The layers are often highly customized, which makes them an effective way for software providers to retain customers.

“Semantic layers are the new battleground across the entire enterprise stack,” said John “JG” Chirapurath, a software industry veteran who is now president at DataPelago, which sells software to accelerate data processing for AI and analytics computing jobs. “Whoever owns the definition of revenue, customer and orders is positioned to capture AI value, because agents run on definitions, not raw data.”

Microsoft rivals are pushing to make it easier for customers to use semantic layers that aren’t tied to a specific software provider. Snowflake and Salesforce are leading a coalition of nearly 50 companies that aims to develop an industry standard for semantic layers. Other members of the group, known as the Open Semantic Interchange, include Amazon Web Services and Oracle. Microsoft is not a member.

Chris Webb, a Microsoft program manager for Power BI, announced on LinkedIn last month that Microsoft has no plans to let Power BI customers use semantic layers from other companies. Doing so, he wrote in a related blog post, “would be a huge amount of work with few benefits to customers” because other companies’ products behave differently and might cause malfunctions.

The Databricks feature saved its customers from having to separately configure their data to work with Power BI. Databricks designed the feature to work with multiple visualization software products, but the biggest adoption, according to the Databricks salespeople, came from customers wanting to connect it with Power BI, which has more than 35 million monthly active users, the Microsoft spokesperson said. That put the feature in competition with Microsoft’s Fabric suite of database and AI products, which creates semantic layer data for Power BI and other products.

Microsoft is an investor in Databricks, and it works with Databricks and Snowflake to sell and promote their products through its Azure cloud service—as well as competing with them through Fabric. These arrangements are typical in enterprise software, but the battle for control of the semantic layer is upping the ante.

Both Microsoft and Databricks have played down the idea of any tension.

A Microsoft spokesperson said in an email that it made the change because the Databricks feature “introduced complexity and risk to data accuracy, so the change reflects a focus on reliability and long-term product integrity rather than a shift in partnership posture or competitive strategy.” The spokesperson declined to elaborate on the nature of the complexity and risk.

“We’re more committed than ever to our partnership with Microsoft and to helping joint customers accelerate innovation with data and AI,” a Databricks spokesperson said in an email. “That includes making our joint customers successful using Azure Databricks with PowerBI.”

WSJ : Ebola Outbreak Is Now Third Largest in History. Here’s What to Know.

Ebola Outbreak Is Now Third Largest in History. Here’s What to Know.
Ebola case counts are quickly climbing as a rare strain hits a high-trafficked part of Democratic Republic of Congo

An outbreak of a rare strain of Ebola in the Democratic Republic of Congo is already the third largest in history, just weeks after it likely began.

It is spreading rapidly in one of the most volatile and vulnerable regions of the world, worrying U.S. and international health officials. Cuts to international health aid over the past year and a half are adding to the burden, some public-health leaders say.

Here is what you need to know about the rare Bundibugyo ebolavirus, how contagious it is and why officials are so worried.

Where is this outbreak occurring and how fast is the virus spreading?
It is centered in the Ituri province in northeastern Congo, a war-torn area that borders Uganda and South Sudan. The first known patient, a health worker, developed symptoms including fever and vomiting on April 24 and died, according to the World Health Organization. The virus spread further after that individual’s virus-ridden body was transported home for burial.

As of Friday, there are at least 750 suspected cases and 177 suspected deaths in Congo, and two cases in Uganda from travelers, according to the WHO. Health authorities suspect many more people have been infected and in a wider area because the virus spread undetected for weeks. Another complicating factor is that cases have been reported in cities.

This region is a major commercial hub and mining center with lots of traffic. It is densely populated; two million people have been displaced and 10 million face acute hunger. Armed conflict has intensified over the past two months, making it difficult to get health assistance to the area. There is also deep distrust of outside authorities. It took two years to stop an Ebola outbreak here in 2018.


What is the rare strain causing the outbreak?
Bundibugyo is one of four species or strains of Ebola known to infect humans, named after a mountainous district in Uganda where the first outbreak took place in 2007.

It has caused only two previous outbreaks and is so rare that it wasn’t included in lab tests for Ebola where the latest outbreak occurred, which delayed its identification, according to international health officials. Bundibugyo virus was confirmed when samples were sent thousands of miles across the country to a government research lab.

Is Bundibugyo virus more dangerous or contagious than other Ebola viruses?
No. The virus replicates more slowly and appears to be less deadly than the more common Zaire ebolavirus, according to studies. The Zaire strain was responsible for an explosive epidemic in West Africa in 2014 that killed more than 11,300 people—the largest Ebola outbreak in history. But the Bundibugyo strain still killed more than 30% of those it infected in the past two outbreaks.

There are no approved vaccines or treatments, which makes the outbreak that much riskier.

What are the chances that Ebola will spread to the U.S.?
The risk is low, according to the Centers for Disease Control and Prevention. U.S. officials have prohibited foreigners who have been to Congo, Uganda or South Sudan in the past three weeks from entering the country. U.S. citizens who have been to those countries are being directed to Washington Dulles International Airport and screened there, the CDC said.

Still, travelers from the region where Ebola is spreading may have already entered the U.S. in the past three weeks. The country is also expecting a large influx of foreigners to several cities, including New York, for the World Cup.

The U.S. has a network of specialized treatment centers around the country to care for patients with dangerous pathogens like Ebola and hantavirus, at hospitals such as the University of Nebraska Medical Center and Emory University Hospital. U.S. authorities evacuated an American medical missionary who contracted Ebola in Congo to a hospital in Germany with similar capabilities.

What are the symptoms of Ebola?
Early symptoms resemble those of other, more common diseases: fever, fatigue, muscle pain, headache and sore throat. These are known as Ebola’s “dry” symptoms, and they are often mistaken for malaria. After four or five days, a patient may develop “wet” Ebola symptoms: watery diarrhea, nausea and vomiting. Organ dysfunction may occur and in some cases, internal and external bleeding from the nose, or in diarrhea.

How does Ebola spread, including this strain? Could it cause a pandemic?
Ebola spreads through touching sweat, blood and other bodily fluids of infected people. A body is even infectious after a person dies, making burial rituals that involve touching a deceased person, a common practice in this region, especially risky.

Ebola is very deadly, but unlikely to cause a pandemic because it doesn’t spread easily. It isn’t airborne like Covid or the flu, and you can’t get Ebola simply from being near a person with it. The incubation period is between two and 21 days, and people aren’t usually contagious before symptoms.

What vaccines and treatments are in development for this particular Ebola strain?
Two vaccines and two treatments are approved for the Zaire strain of Ebola. Even though Bundibugyo virus is in the same family of viruses, the genes that vaccines and drugs target differ significantly.

Several potential Bundibugyo vaccines are in development, but they haven’t been tested in humans and preclinical data are limited, according to the Coalition for Epidemic Preparedness Innovations, which funds vaccine development. Manufacturing and preclinical studies will be done at the same time so that doses are ready as soon as possible for human trials in the outbreak zone, according to CEPI.

The most promising candidate is a vaccine based off of one already approved for the Zaire strain, said Dr. Vasee Moorthy, a WHO official. It will likely take six to nine months to get doses ready for a clinical trial, he said.

Vaccine researchers at the University of Oxford are working with the Serum Institute of India, the world’s largest vaccine manufacturer, on another potential Bundibugyo vaccine, which could be available in two or three months, Moorthy said. But that shot has yet to be tested even in animals.

Mapp Biopharmaceutical has a potential treatment that protected against the Bundibugyo strain in preclinical studies, and an early-stage clinical trial showed it is safe in humans. Developed with U.S. government funding, it is a monoclonal antibody treatment.

Gilead Sciences’ investigational antiviral, obeldesivir, is predicted to be active against the Bundibugyo strain, a spokesperson said, and the company is working with global public-health authorities.

Its drug remdesivir, which was used to treat Covid, also inhibited the Bundibugyo strain in one lab study.

WSJ : David Sacks’s 11th-Hour Plea Led to Trump’s Backtrack on AI Executive Orde

David Sacks’s 11th-Hour Plea Led to Trump’s Backtrack on AI Executive Order
The move marked a win for business-minded officials wary of Chinese competition

  • President Trump postponed signing an executive order on artificial intelligence, citing concerns about hindering U.S. leadership versus China.
  • Venture capitalist David Sacks, a Trump adviser, warned the order could lead to mandatory regulations, slowing the industry in its race with China.
  • The decision marked a win for business-minded officials over security-focused officials pushing for more AI oversight.

WASHINGTON—When President Trump was deciding whether to move forward with a long-awaited executive order on the dangers posed by artificial intelligence, David Sacks turned to a familiar refrain.

The venture capitalist and Trump adviser warned in a Thursday call with the president that the order’s voluntary process for government testing of AI models could lead to mandatory regulations that slow down the industry in its race with Chinese competitors, according to people familiar with the matter. Sacks argued the order would give a victory to so-called AI doomers who propose strong guardrails to limit the risks posed by the technology, the people said.

Already on the fence about the order, Trump said he shared concerns about China and worried about hindering AI investment, just a week after a summit with China’s Xi Jinping in Beijing.

Shortly after the discussion, Trump postponed the signing and told reporters he wouldn’t sign the order, adding to the chaos surrounding the White House AI strategy and giving Sacks one of his biggest wins in Washington.

The drama showed Sacks is as influential as ever, catapulted in part by the president’s fear of losing the nation’s lead in AI. The move marked a win for business-minded officials wary of Chinese competition, who were at risk of losing ground to National Cyber Director Sean Cairncross and security-focused officials pushing for more oversight.

“We’re leading China, we’re leading everybody, and I don’t want to do anything that’s going to get in the way of that lead,” Trump told reporters Thursday. In the afternoon, after Trump had canceled the signing, Sacks and the president talked again, this time in the Oval Office, the people said.

Earlier this year, Sacks left his formal role as AI and crypto czar to become co-chair of a White House advisory group working on science and technology. Some MAGA leaders including former Trump adviser Steve Bannon, who had hoped the move was made to sideline Sacks, were upset by Thursday’s events.

“That’s prime-time David Sacks,” Bannon said in an interview. He recently sent a letter to Trump, along with about 60 conservatives in favor of AI regulation, asking the administration to require mandatory AI-model testing, a step beyond the now-shelved executive order.

Some White House aides believed Trump had already signed off on the order and are livid that Sacks circumvented the policy process, administration officials said.

Bannon said bad outcomes from speeding up AI deployment will eventually lead to more regulation. “The accelerationists are only accelerating the damage they’re doing to the structures of society,” he said.

Trump discussed the order Thursday afternoon with Sacks’s friend and former colleague Elon Musk and Meta Platforms Chief Executive Mark Zuckerberg after deciding to shelve it. Musk said on X he hadn’t seen the executive order and spoke to Trump after his decision. Zuckerberg didn’t speak to the president until after the event had been canceled, a spokesman said.

Axios and other media outlets earlier reported some of the interactions between Sacks and Trump.

Despite not being in the White House day to day, Sacks has remained a trusted adviser to Trump. The two still talk regularly, with Sacks often citing the China threat and investment in data centers to run AI models across the country, according to people familiar with their relationship.

Administration officials say it is important for the economy and security that the U.S. wins the tech race. They want the world to run on democratic models rather than tools that can be controlled by the Chinese government.

But there is division about China’s AI capabilities and how best to preserve U.S. leadership.

Many industry analysts estimate the U.S. is ahead by several months, claiming that the most powerful tools from Anthropic and ChatGPT maker OpenAI are better than models from China’s DeepSeek and others.

But many of the Chinese products are open source, meaning they publicly share details about the tools and make it easy for users to download and modify them. Some administration officials worry China’s advantage in such models will get other countries hooked on the technology.

Many analysts disagree with Sacks, arguing that it is possible to have reasonable guardrails while giving priority to innovation.

“It’s unclear how much of this is an excuse about China versus they’re not really interested in doing any regulation,” said Rayid Ghani, a Carnegie Mellon University professor who studies AI.

A conservative libertarian who was part of the “PayPal mafia” alongside Musk and Peter Thiel, Sacks has touted the economic benefits of AI in response to a growing backlash from Americans. In recent months, Sacks played a role in the White House campaign to kill state AI regulations, though Congress has balked at such proposals. Late last year, he helped convince Trump to sign an executive order attacking states that pursue onerous AI rules.

“It’s not really clear exactly what it is that the people who are really afraid want other than for everything just to stop…China is not going to stop,” Sacks told Politico recently.

Work on the recent executive order picked up after the release of Anthropic’s Mythos, a model capable of launching cyberattacks and identifying software vulnerabilities. Cairncross and others pushed for cybersecurity-focused officials to work with the private sector on addressing weaknesses.

The factions within the White House went back and forth for weeks before previewing it for industry executives earlier in the week. The administration had invited executives to Washington for the Thursday signing and was setting up the room for the ceremony when Trump pulled the plug, people familiar with the matter said.

Tech executives hailed Trump’s decision to put the order on ice. David Casem, CEO of AI and telecom company Telnyx, previously had a mixed view of Sacks. But, he said, “I’m happy to put that all aside if he’s able to keep Trump on the right track.”

FT : The blissful Italian lake hidden in Como’s shadow

The blissful Italian lake hidden in Como’s shadow
Little Lake Orta has long been overlooked in favour of its bigger, glitzier neighbours — and is all the better for it

My terrace at La Darbia stands before the Platonic ideal of a landscape, the sort of view an earlier visitor might have spent half a grand tour trying to capture in oils.

Far beneath trim rows of Nebbiolo vines, a thick arc of glassy water wanders across the canvas, its shores embellished with spires and palazzi. A wooded lakeside hill, clustered with baroque chapels, looks down at an island with a monastery in the middle. In the background, rearing ranks of plump greenery and sheer granite are speckled with terracotta roofs, crowned by the shimmering tip of Monte Rosa, dutifully pinkish in the mid-morning rays. It is a tirelessly becoming spectacle, and one that evolves as the sun pans across the Piedmont sky, a chiaroscuro masterclass that makes water shimmer and blacken by turns, brings hillside castles into fleeting spotlit focus, and gradually fades Monte Rosa out of the picture after lunch.

The Italian lakes aren’t exactly short on scenic majesty, but these days it’s generally half-hidden behind sunburned faces and lofted camera phones. Earlier this year, a depressing clip from Lake Como went viral, showing an endless queue of visitors waiting in turn for their Instagram money shot through a pair of open waterside gates. Access to the site had cost each of them €13. Some stood in line for two hours.

It’s the sort of experience that has come to blight Italy’s overwhelmed big-ticket locations, but happily this is a country crammed with under-appreciated small-ticket wonders. When Florence gets too much, try Bologna or Arezzo. Escape the Roman hordes by popping down the Tiber to Ostia. And then there’s Lake Orta, Como and Maggiore’s half-forgotten neighbour. In terms of aquatic surface Orta is a minnow, less than a tenth the size of Maggiore. But few places in Italy can match this delightful backwater’s ratio of allure to visitor numbers.


In the days ahead, wandering all but alone through Unesco world heritage sites and past the grandest shoreside mansions, it feels like Como must have felt in a different era, before globalised mass tourism and that corrosive quest for selfie likes. Perhaps the 1980s, or maybe even the 1890s.

La Darbia was created 14 years ago by two local brothers, both architects unburdened by previous experience of the hotel and catering trade. Inspired by the upscale “restored hamlet” resorts then beginning to spring up in Tuscany, Gian Carlo and Matteo Primatesta acquired a ruined 15th-century tower and a surrounding chunk of hillside. “One of our clients owned the land and asked if we were interested,” they tell me in La Darbia’s alfresco bar, a shaded kitchen garden set above a saltwater infinity pool and facing that epic vista. It was the sort of opportunity that would no longer exist on the assiduously developed slopes of Como and Maggiore.

Over Milano-Torinos and focaccia al padellino, it becomes clear that the pair’s motivation has always been aesthetic rather than commercial. Reflective and low-key, they certainly weren’t plucked from Italian hospitality’s central casting. La Darbia’s 20 suites, arranged on two levels alongside the restored tower, are furnished with bespoke tables, bookshelves and wardrobes designed by the brothers and beautifully crafted by local artisans from reclaimed farmhouse doors and the like. (“Here in Piedmont, in most of Italy, people prefer new things, so it’s easy to find old things,” says Gian Carlo. “For us there is so much character and history in these materials.”) The lofty pantiled roof of my top-floor apartment is supported on gnarled beams; the stone and iron staircase up to it is a study in artful patina, wreathed in Virginia creeper.

The tower, now home to the reception desk and offices, was constructed to satisfy a historic regional obsession with the capture and consumption of small birds. Fancy a thrush for supper? Simply plant an orchard of crab apples, build a massive tower in the middle, then throw a big net off the top when migrating passerines stop by for a fruit snack. (The practice was banned in 1992.)

La Darbia’s suites were initially pitched at self-catering young families — mine had a children’s spare room with two little beds — but the demographic began to evolve eight years ago when the Primatestas opened the restaurant where I will dispatch several truly great meals. Most guests are now couples focused on fine dining and elegant exclusivity, and staff confirm that the kitchenettes in every suite — like the spare rooms — are barely used. Dining out on your broad terrace before all that scenery would certainly appeal on a warm evening, but those who do it these days order in-room service. 

You could quite easily and rewardingly come to La Darbia and not leave the place until you went home. Plenty of my fellow guests do just that, wandering through the well-tended azaleas and irises, drinking in the poolside views, and in one case endlessly taunting the robot lawnmower that trims the grass between the hotel’s vines. There is a logistical incentive to stay put. It’s important to emphasise that La Darbia is not on Lake Orta, but extremely high above it. Coming and going by car involves a steepling single-track section hemmed in by ancient walls and plenty of impatient oncoming locals. You can walk down to the lake but you wouldn’t want to walk back up, and taxis are hard to come by: the give and take of low visitor numbers.

The answer is La Darbia’s fleet of hybrid e-bikes, of which I take daily advantage. After a bracing descent of the hotel driveway’s cobbled hairpins, it’s a three-minute swoosh to the edge of Orta San Giulio, the area’s showpiece settlement, built around and atop a promontory that noses into the lake. Rhododendrons and Spanish brooms blurt riotously over old stone; palms tower above bulrushes at the twinkling water’s edge. Aristocratic holiday residences, each with three or four hundred enviable summers under their belts, gaze out at the lake over gates flanked with lions and caryatids. The soundtrack is birdsong and gently lapping water. Under cloudless skies it is all sigh-inducingly glorious, not least because my bike and I have much of it to ourselves.

The main square, Piazza Motta, has been a civic focus since the 13th century, when Orta San Giulio became the hub of an independent federation that would govern the lake and its environs for the next 500 years. The Broletto, a Renaissance town hall decorated with flaking frescoed coats of arms, is neighboured by stately, pastel-fronted hotels, offering grand views of the little monastery island, home to about 70 Benedictine nuns.

An ebullient party of local primary schoolchildren is being herded into one of the ferries that connect Piazza Motta with the island and the towns on Orta’s opposite shore. In four days, this is the only loud noise I experience, apart from the ones I make when a hornet gets into my bedroom.

My circumnavigation of Orta San Giulio continues on foot, pushing the bike round a dappled lakeside footpath. The water is mesmerically clear. When a crested grebe ducks below the surface, I follow its dive right to the bottom and back. Orta is among the cleanest lakes in Europe, and being so compact and sheltered by tall hills, one of the calmest.

A pristine baroque mansion has a polished brass bellplate with two Russian surnames on it, beside a very locked set of enormous iron gates. Past it, a sense of carefully managed neglect begins to take hold: bleached paint, a few cracks in the stucco, the odd missing louvre in a set of shutters. The Piranesi-print vibe might not do it for all those Italians who prefer new things, but I’m enchanted. We can all pretend that we’re better than the snap-happy tourist masses, but in the following hour my phone is barely away from my face.

My bike’s turbo mode whisks me back up to the hotel and a debut encounter with chef Matteo Monfrinotti’s evening menu. The dishes — heavy on Piedmontese ingredients — are bijou but dense in rich flavours, crowned by an especially memorable pasta cappelletti with pears, salted walnut, baby squid and mullet bottarga. The young local staff are warm, wise and efficient, most notably the sommelier who lets me loose on some extraordinary Barolos.

A routine is established: electrically assisted sightseeing by day, Barolo-assisted gastronomic indulgence by night. The next day I ride down — then up — to Sacro Monte, Orta San Giulio’s summit and home to all those baroque chapels. There are 20 in all spread out among the trees in this Unesco world heritage site, each hosting a tableau from the life of St Francis of Assisi, crammed with full-size figures caught in suspended animation. There is much frozen wailing and pointing, and of course barking, flapping and whinnying. It’s both amazing and surreal, like some bonkers devotional theme park. Being at Orta, it’s also empty and free.

The day after, I ride right round the lake on a 38km trail, the Anello Azzurro (Blue Ring) steering the bike through isolated villages full of roses and along stretches of vacant waterfront, then dragging it up a steep forested slope strewn with fallen trees. Public service announcement: no matter what AI might tell you, the Blue Ring is unsuitable for bicycles, electric or not. That night I go off-menu and order a huge plate of spaghetti carbonara.

On the last evening, Gian Carlo drops by at my table to tell me about the Primatestas’ new project: a larger, more luxury-focused hamlet restoration set amid lavender fields in the Chianti hills, due to open this summer. Inevitably he dwells extensively on the furniture he is designing for it, and the gorgeous old wood that will be employed in its construction. Chianti, he acknowledges, is an entirely different hospitality proposition: more visitors, more competition, very much an on-piste destination.

The challenge at La Darbia, for a boy from Orta who loves this lake’s calm contentment — and whose manner embodies it — is to raise traveller awareness just a little higher, spreading the word without losing the magic. “I like that here is maybe a hidden paradise,” he says, “but of course you always want some more visitors, it’s important for our local economics.”

Behind him, through the restaurant’s full-height glazing, dainty little strings of shoreside lights are reflected in distant dark water. “But there is always this fear that somebody goes on Instagram, and says look at this amazing place, and I wake up and find two million people outside.”

FT : The new arms race in computing power

The new arms race in computing power
Military capability depends increasingly on data centres. Now governments outpaced in AI are looking to experimental technologies

On one screen, a normal street scene plays out in downtown Sydney. On the other, cars and pedestrians have turned into ghosts. The background is dark and indistinct, with only spectral outlines of movement shown. 

The second feed is the world viewed through a neuromorphic “event camera” demonstrated at the Neuroware Centre at University College London (UCL) in January. Neuromorphic computing is inspired more by biology than mathematics, designed to mimic how a human brain computes. It uses bursts of electrical activity modelled on neurons, acting only when input data changes rather than constantly processing full data streams, and consuming a fraction of the power and bandwidth. The human brain uses only 20 watts of electricity, the power of a dim lightbulb.

“You’ve compressed this cluttered scene that was megabytes of data to kilobytes, and you’ve extracted the things that are important,” says Tony Kenyon, professor of nanoelectronic and nanophotonic materials at UCL and director of the Neuroware Centre.

Some versions of neuromorphic computing, known as wetware, even use biological brain cells integrated with silicon hardware. But here researchers are looking to augment conventional hardware rather than replace it. “The whole point is that neuromorphic tech is compatible with what we already use for microelectronics,” says André van Schaik of the University of Manchester, which developed algorithms for the camera.

As AI fuels the creation of ever-larger data centres, are strange machines such as these an answer to the physical limitations in bandwidth, memory and energy use we are running up against? One day, suggests Kenyon, neuromorphic chips could work in the same data centres as part of a “hybrid computing” approach. 

From AI-assisted battlefield systems and autonomous drones to cyber security and intelligence analysis, advanced military power increasingly depends on access to computing. Governments are beginning to treat it as earlier generations treated oil and electricity grids: as infrastructure on which economic strength, military capability and political independence depend. Some even see computing power as a prerequisite for sovereignty itself, much as nuclear technology defined geopolitical power in the 20th century.

But for technological “middle powers” such as the UK, there is a problem. The overwhelming majority of global AI computing power — experts reckon 90 per cent — is controlled by companies in the US and China, leaving others searching for ways to secure a foothold in what policymakers and executives now call the “compute stack” — the chips, networks, data centres and specialised hardware that underpin modern AI. 

“Semiconductor chips are such an integral part of modern high-speed computing technology that they should be thought of as critical to a nation’s future in the way that water or clean air are,” says Kenyon.


Experimental technologies are playing a growing role in Britain’s search for computing sovereignty. The Ministry of Defence (MoD) has trialled systems for tracking satellites and space junk that use the neuromorphic vision sensor from van Schaik’s company Optera, and has discussed using the technology for drone tracking. The MoD also bought an experimental quantum computer from London-based ORCA computing in 2022 — probably the first quantum computer bought by a defence ministry. 

The interest comes as a new generation of weaponry depends on AI. The latest fighter planes generate terabytes of sensor data every hour they fly, processed by classified models. Submarine hunting relies on analysis of acoustic data that used to be done by humans wearing headphones, but now the ocean can be listened to by algorithms looking for anomalies. 

Digital battlefield brains such as the Maven Smart System, software designed by Palantir, already play a huge role in warfare, while computing will determine the effectiveness of autonomous weapons. 

For some, Britain’s dependence on foreign — mainly American — providers for AI and cloud services is dangerous. “Take an extreme example,” says Nigel Toon, chief executive of Graphcore, a Bristol-based chip designer. “Let’s say you were dependent on a large foreign hyperscaler for your compute. The way the security codes work, they could effectively brick the whole data centre wherever it was in the world.”

Situated in the King’s Cross area of London, the Neuroware Centre is surrounded by symbols of Britain’s prowess in computing. Nearby is the Alan Turing Institute — named after the man who invented modern computing and, in the process, saved the free world. Around the corner in St Pancras Square is DeepMind, Google’s AI research arm. 

It is a reminder that Britain’s second-tier status in AI was not inevitable. The country produced many of the intellectual foundations of modern AI and remains home to some of the world’s strongest academic research. 

But the UK has repeatedly struggled to convert that scientific talent into technology companies capable of competing with US and Chinese giants. The problem, executives and investors say, is not ideas but capital. No sooner does a promising British start-up mature beyond its early stages than it is absorbed by deeper-pocketed foreign investors or tech groups.

DeepMind is the clearest example. Founded in London in 2010, it was acquired by Google just four years later. Although DeepMind has remained in Britain, where it has been central to the development and running of Google’s Gemini AI models, ownership migrated overseas.

“[Google’s acquisition of] DeepMind was a huge blow to British AI,” says one expert who asked to remain anonymous. “Yes, they are still in London. But we missed a chance to make a great British company.” 

Researchers and executives argue, however, that the next technological shift could offer Britain a second chance.

“The UK, if one is honest, has probably lost the race in AI,” says Sebastian Weidt, chief executive of Universal Quantum, a quantum computing start-up in Haywards Heath, south of London, and a professor at the nearby University of Sussex. “In quantum computing, there is a unique opportunity, once in a generation, that we can build a trillion-dollar company here in the UK.”

Weidt began working on quantum computing 15 years ago. Back then, he says, the field still felt borderless and open, “like a commune”, he said. Researchers swapped ideas openly as they sought to make fragile quantum “qubits” — ionised atoms or single photons stable enough to perform calculations impossible for conventional computers.

Today, that world has vanished, as the technology has become enmeshed in the politics of technological sovereignty and national security.

In March, the UK government announced a £2bn quantum funding initiative aimed at building domestic capability. Around the world, states are pouring billions into national quantum programmes while tightening controls on talent, intellectual property and collaboration. Weidt’s start-up is developing a €67mn quantum computer for the German space agency. 

“There’s world-leading stuff going on in this country in quantum,” says Weidt. “Double down on that now and we do something great.”

He adds: “AI, it’s too late. They all talk about AI, they want to build more data centres and so on, which is fine. But the danger is the same thing happening in quantum. There’s already consolidation happening, there are already quantum companies leaving the UK.” Last year, for example, Oxford Ionics, a leading UK quantum company, was bought by Maryland-based quantum hardware company IonQ for more than $1bn. 

Quantum computing may not live up to expectations. But already, there are proposals to use it in systems such as the UK-Italian-Japanese next-generation fighter, the Global Combat Air Programme, while scientists have shown that a quantum computer will eventually be able to break traditional encryption, rendering everything from cryptocurrency to national secrets vulnerable.  

The shift to a quantum arms race is visible even in Weidt’s own academic network. He still tries to stay in contact with former graduate students scattered across the global industry. But it has become harder to keep in touch with some of those who have returned to China. “In some cases, it seems like they have vanished,” potentially working for sensitive state-backed programmes, where collaboration is no longer possible, he says. 

Chinese government spending on quantum programmes is now roughly $17bn, compared with $9bn each for the US and Japan, according to data assembled by Qureca, a quantum technology research organisation.

This quantum push is likely to be driven by fear of technological dependence, experts say, in the wake of a US ban on advanced chip exports that has fuelled a drive for self-sufficiency.

Toon reckons that 2022 legislation denying China access to powerful Graphics Processing Units (GPUs) may have forced it to adapt by learning to make AI models five to 10 times as efficient. “They’re designing these models in such a way that they burn less compute.”  

The consequences of the US using chips as leverage are now felt globally. Today, in the wake of President Donald Trump’s efforts to prise Greenland from Denmark earlier this year, US allies say they have every right to fear that their access to US chips could be threatened. “I wouldn’t be surprised to see them use GPUs as leverage to some degree. And they could use that in any way they like,” says Dave Grimm of AlbionVC, a UK venture firm.

During Trump’s visit to the UK last September, he arrived with executives from Nvidia, Microsoft and other US technology giants. Supporters argued that the partnerships announced — more than $100bn in commitments — would cement Britain’s place inside the global AI economy, but they also deepened unease that Britain risked becoming less a sovereign AI power than a downstream customer of American digital masters, giving Washington leverage it might eventually use.

While Jensen Huang, Nvidia’s chief executive, insisted that buying his company’s graphics processors would provide “sovereign AI”, others are sceptical. “It is sovereign until a future American president decides that you can’t have it,” says James Regan, founder and chief executive of Oriole Networks, a British photonic networking start-up.

Instead, he says: “I am seeing a whole bunch of countries, between China and the US, who are very interested in gaining some degree of control over their own destiny.” 

In an April speech, UK technology secretary Liz Kendall announced a domestic AI hardware initiative to secure Britain’s capability in chips and semiconductor technologies, adding that she would not accept “defeatism” from those claiming the AI race has been lost. In the same month the government launched a £500mn fund, known as Sovereign AI, to support homegrown AI start-ups. This month it also pushed pension funds to drastically raise investments in private markets, including technology venture capital.

“There is a long-term ambition to do as much as the government can do to anchor UK start-ups and UK technology in the UK for UK impact,” says Michael Cuthbert, director of the National Quantum Computing Centre. 

For countries that have missed the AI train, there is hope that some of the new technologies will provide leverage to get back into the game. 

Before roughly 2014, Kenyon says, demand for computing power was doubling every 18 months — keeping pace with supply as governed by Moore’s Law, which predicts that the number of transistors on a microchip will double every two years and has held for decades. But recently demand has been doubling at a much faster rate. “So even if Moore’s Law was working, it still wouldn’t keep up.”

The question for the next generation of AI, Kenyon says, is: “How do you process these huge, massive models as they bloat ever further? You’re going to need solutions for bandwidth — moving data around — and memory. They’re starting to wake up to that.”

Then there are the astronomical energy costs — roughly 156GW of electricity-generating capacity by 2030, according to an estimate last year by the consultancy McKinsey, about 1.5 times the installed capacity of Australia. “When you’re having discussions where you’re saying we need to build either a nuclear reactor or we need to develop fusion to power our data centres, you’ve got to question your underlying technology,” Kenyon says. 

For the near future, the GPU — the current workhorse of the AI data centre — will continue to dominate AI computing, experts say. “At the moment, your AI program is only as good as how many Nvidia GPUs you have. This is the position we are at now,” argues Grimm. 

However, he says, “the pendulum is beginning to swing away from that situation”, adding that alternatives are already being explored.  

US AI company Anthropic, for example, is reportedly in early-stage talks to purchase specialised high-performance AI chips from Fractile, a London-based AI chip start-up. Meanwhile Oriole, which uses photons of light to operate networks more efficiently, said it was working with AMD, the second-largest GPU maker worldwide, to build a system for the UK’s Scaling Inference Lab, a test bed for AI hardware technologies.


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“We’re always going to have to buy bits of the AI stack from other nations,” says Grimm. “But if we’ve got some leverage in that conversation, if we’ve got the best networking solution or the best memory capability, then they can’t turn around and turn off the GPUs, if they need our memory or our DRam [dynamic random-access memory] or our networking solution to make their part work.”

Sitting on a key piece of the “compute stack” is increasingly important for countries such as the UK. South Korea, for example, dominates key parts of the semiconductor ecosystem, especially advanced memory chips through conglomerates Samsung and SK Hynix. The country is not just a customer buying GPUs, but a vital supplier to the global AI infrastructure.

Taiwan is another country that sits on a node in the AI economy: TSMC, the semiconductor manufacturer that fabricates most of Nvidia’s advanced GPUs. The Netherlands, meanwhile, has membership in the same club through ASML, whose extreme ultraviolet lithography machines are essential for producing the world’s most advanced chips. ASML has also spawned a slew of industries around silicon.

“No one can replicate the entire AI ecosystem,” says Boudewijn Wijnands, chief executive of Fortaegis, a Dutch digital security start-up. “No one can start on day zero and say: ‘let’s build TSMC’. What we can do is say ‘here is the best of Europe, we need the best of America or the best of Korea’.”

“Right now a new generation of choke points is being created,” he says. “You can call them choke points. You could call it interdependence.” 

Increasingly, governments understand that having even one indispensable national champion can provide influence in the AI economy, which rewards countries that can protect and scale strategic industries long enough for them to become unavoidable parts of the global system. 

The risk is that, without sufficient domestic capital and industrial policy, newer breakthrough start-ups are absorbed into larger overseas conglomerates before they become national champions. 

“You’re basically fighting against gravity,” says Josh Burch, co-founder of Gallos Technologies, a London-based venture capital company. “If we’re to nurture these sovereign capabilities, we need much more ready availability of sovereign capital.”

Weidt says that new measures “are just in the nick of time”. But in the meantime, Universal Quantum has established a small subsidiary in Germany. 

“If you are a British company, largely supported by international players like Germany or international investors, you can only play that game so long until someone buys you up or someone encourages you to relocate as part of a bigger deal.”

FT : China Inc goes shopping for western consumer brands

China Inc goes shopping for western consumer brands
Companies seek growth abroad through deals for Everlane and Puma amid domestic competition and deflationary pressures

Chinese companies are buying up a growing number of overseas consumer brands as intense domestic competition spills over into international sectors relatively removed from geopolitical tensions.

Just months after Chinese apparel conglomerate Anta acquired a 29 per cent stake in Puma for €1.5bn, ultra fast-fashion retailer Shein this week struck a deal to acquire “sustainable” US clothing brand Everlane for a reported $100mn.

Everlane is being sold by L Catterton, an LVMH-backed private equity firm that has held a majority stake in the San Francisco-based basics retailer since 2020.

Nestlé last month confirmed that it had sold its majority stake in US chain Blue Bottle Coffee to Centurium Capital, controlling shareholder of cut-price Luckin Coffee, which has tens of thousands of stores in China.

Chinese companies’ appetite for outbound M&A has increased after years of unrelenting competition and deflationary pressures at home.

There were $2.4bn of outbound consumer goods deals in the first quarter of this year, almost all in Europe and North America. Last year’s $6.8bn total was the highest since 2018, according to data from consultancy Rhodium Group.

“Consumer goods is one of the few sectors that remains relatively open to Chinese investment in advanced economies,” said Armand Meyer, an analyst at Rhodium.

“Chinese firms with maturing domestic brands are looking to expand their international footprint at a time when the domestic economy is slowing,” he added. “Acquiring established foreign brands is a faster and more effective path than building from scratch.”

Anta’s stake in Puma is the latest in a longer-term strategy of overseas purchases, including a 2019 buyout of Amer Sports, the owner of Hoka, Salomon and Arc’teryx before Amer was relisted in New York in 2024. Anta has also bought German clothing business Jack Wolfskin, and owns the rights to Fila in mainland China.

“Anta is a poster boy for this kind of strategy,” said Josh Perlman, head of Greater China at Authentic Brands Group. Authentic Brands is in the process of relaunching Reebok in China, as well as US luxury brand Guess, which this year closed all its stores in China.

China’s overall outbound investment was $27bn last year, the highest since 2020, driven in part by mining assets in emerging economies. Its vast EV industry is also expanding globally.

However, that figure is dwarfed by the $200bn-plus of outbound M&A in 2016, shortly before trade tensions erupted in President Donald Trump’s first term and continued to escalate over the ensuing decade. 

Last week, Trump called on Xi Jinping to “open up” China on the first presidential visit to Beijing in a decade, flanked by a host of business leaders including Tesla chief Elon Musk and Citigroup’s Jane Fraser.

Chinese brands from Zara competitor Urban Revivo to Mixue, a bubble tea chain with more stores than McDonald’s, almost all of them in China, have sought to expand in the US.

While consumer goods are typically less sensitive than many other sectors, there has been intense scrutiny in Europe, where the EU and France have launched investigations into Shein’s sales of childlike sex dolls, weapons such as knuckle dusters and other illegal objects through its third-party marketplace. JD.com’s bid for Ceconomy, a German electronics retailer, has been delayed by regulatory review.

Everlane is known for its sustainable products and says it prioritises “fewer inputs and cleaner outputs in our processes”.

Everlane chief executive Alfred Chang said the brand would remain independent after its acquisition by Shein and stay “true to our longstanding brand values, sustainability commitments and exceptional quality”. The Shein deal could accelerate Everlane’s progress and give it “greater reach”, he added.

Authentic Brands’ Perlman said that the conditions in China, from industrial supply chains to the country’s knowledge base, were creating “monsters”. 

“It’s not just apparel brands, it could be a car brand, it could be a milk tea brand . . . there’s going to be a lot of concepts coming out of China that could be global,” he said.

FT : How AI has changed M&A

How AI has changed M&A
The size of deals is hitting new peaks, unloved companies are becoming sexy and PE has found a new gold mine

Up until this week, NextEra Energy, the Florida-based power company that has just unveiled swashbuckling plans for one of the largest mergers in history, was best known as America’s clean-energy champion, more focused on renewables than transformative takeovers.

Now its planned $420bn combination with its rival Dominion Energy has set out in stark relief how much the AI revolution has affected not just once sleepy utilities but the whole phenomenon of mergers and acquisitions in the US.

The boom — and what it means for sectors such as power and memory chips, as well as its broader economic impact — has transformed the scale, structure and logic of dealmaking.

It has redefined which companies matter, how transactions are structured and who finances them, as private capital investors and banks hurry to reposition themselves. 

“AI has become a tailwind for dealmaking, and equity markets more broadly,” says Matt McClure, global co-head of investment banking at Goldman Sachs.


He adds that demand for the technology is creating “a cascading impact across more traditional industries”, with power companies and data centre equipment suppliers “among the biggest beneficiaries of the AI build-out”.

NextEra is a prime example. Until a few years ago, its bid for Dominion — intended to create a 240-gigawatt giant catering to data centres and other big clients — would have seemed almost unthinkable.

Utilities were viewed as too regulated, politically sensitive and vulnerable to a backlash over energy prices for large-scale consolidation.

AI, together with the Trump administration’s deregulatory drive and America First approach to antitrust, has changed that.

The AI boom is also reshaping Wall Street, the US corporate order and the real economy, as established businesses desperately seek scale to compete with trillion-dollar technology companies.

CEOs and boards have caught deal fever Fomo — fear of missing out — while their rivals transform themselves for the AI age.

Groups previously unloved by Wall Street have become the target for multibillion-dollar transactions, such as Globalstar, a satellite operator, bought by Amazon for $11.6bn last month. Others have seen their shares soar. The market capitalisation of Sandisk, the computer storage group, has increased by 4,000 per cent since going public in February last year due to insatiable demand for its chips. 

Even the nature of deals is changing, with so-called hyperscalers such as Nvidia, Meta and Google spending billions to hire elite AI engineers to avoid buying whole companies and sidestep antitrust regulators. The boom is also redrawing private capital, with groups such as BlackRock, Blackstone and Apollo rushing to make AI-related investments.

To some, the momentum seems unstoppable. But two tests are looming. In the coming months, capital markets will have to absorb IPOs of a size never experienced before, with SpaceX, OpenAI and Anthropic all set to be valued at around $1tn or more apiece.

The shift to AI at the heart of the M&A upheaval is also facing backlash from Americans who blame data centres for increasing electricity bills, threatening jobs and disrupting their communities.

Scale, scale, scale
A quarter of a century ago, the internet revolution was defined by companies that could conquer the world with relatively little capital. Software groups scaled at extraordinary speed without needing factories, power plants or vast physical infrastructure beyond logistics hubs and cellphone towers.

The AI revolution is overturning that model.

Winning now requires immense scale: chips, energy, fibre networks, data centres and financing measured not in billions, but trillions of dollars.

Jensen Huang, chief executive of Nvidia, recently argued that “trillions of dollars of infrastructure still need to be built” to support the AI boom.

“The amount of computation demand for software in the past is a tiny fraction of what is necessary in the future,” Huang said on a call with investors. “And AI is here, AI is not going to go back.”


That race for scale is driving the new era of megadeals.

Utilities are pursuing transformational mergers to secure power generation, infrastructure investors are hurrying to finance data centres and technology groups are striking increasingly unconventional transactions to lock up talent and supply chains before rivals do.

The shift is being accelerated by geopolitics and Donald Trump’s return to the White House. His administration has treated AI as a strategic arms race against China, creating an environment in which corporate consolidation is viewed through the lens of national competitiveness rather than consumer protection. 

On Thursday, Trump postponed signing an executive order on AI under which the sector’s leading companies would voluntarily submit their models to government checks for national security and cyber risks.

Peter Orszag, chief executive of Lazard, describes the trend as part of a broader move towards “discretionary state capitalism”, in which governments play a more active role in directing capital and industrial policy. He argues the US economy is increasingly being powered by investment tied to AI, from hyperscaler capital expenditure to construction and energy infrastructure.

The political climate has also transformed antitrust from the Biden administration’s approach. Dealmakers increasingly believe consolidation will be tolerated — or even encouraged — if it supports the administration’s broader Maga agenda of AI dominance, domestic manufacturing and economic nationalism.

The result is a corporate environment in which size itself has become a strategy.

Second life
For much of the past decade, hardware groups such as Sandisk were dismissed as low-growth relics in a market obsessed with high-margin software.

The AI boom has transformed their fortunes.

As demand for data storage and computing capacity has surged, investors have rushed into Sandisk as well as groups such as Western Digital and SK Hynix, in recognition that the large language models that dominate AI depend on vast memory and chip infrastructure.


The shift has also transformed the energy sector.

Constellation Energy, operator of the country’s largest nuclear fleet, has become a market darling as hyperscalers race to secure the power needed for data centres.

Constellation’s nearly $27bn takeover of rival Calpine is part of a wave of utility consolidation tied to AI demand, alongside BlackRock-backed deals worth a combined $39bn for power groups AES and Allete.

Industrial groups providing the physical “plumbing” of the AI era have also become strategic assets. Eaton’s $9.5bn acquisition of Boyd’s thermal division this year highlights the contests to control liquid cooling technology vital to next-generation computing facilities.

“The infrastructure required to run and operate an AI data centre just requires more power at the chip,” says Heath Monesmith, president and chief operating officer of Eaton’s electrical sector. “The whole industry needs to move at the speed of chip design.”

KKR made more than a 15-fold return on March’s $4.75bn sale of CoolIT Systems, which had jumped from a $270mn valuation just three years before. The company’s transition from a peripheral player in gaming to critical AI infrastructure illustrates how the boom is minting winners from once-niche specialists. 

The ripples are felt well beyond hardware and energy. General Catalyst’s $6.3bn acquisition of travel group American Express Global Business Travel and its partnership with Nelson Peltz on an $8bn takeover of London-based asset manager Janus Henderson reflect growing bets that AI can transform service businesses through automation and productivity gains.

Hire or buy?
Big Tech has found a takeover workaround in the AI race: licensing a start-up’s intellectual property and hiring its top talent without acquiring the corporate entity.

Such “acquihires” came to prominence as a defensive manoeuvre against the antitrust policy of the Joe Biden era. They have persisted under a more deal-friendly Trump administration, helping companies sidestep the lengthy reviews that accompany traditional M&A, although state-level scrutiny has begun to intensify.

Almost every hyperscaler has adopted the playbook. Google recently deployed $2.4bn to secure Windsurf’s coding architecture and leadership, following similar raids by Microsoft on Inflection AI and Amazon on the engineering core of Adept AI.

Meta’s $14.3bn investment in Scale AI, which installed Alexandr Wang at the helm of the tech giant’s new superintelligence division, remains the benchmark for this talent-first consolidation.

Nvidia, the latest heavyweight to embrace the strategy, has carried out several such deals, including with networking start-up Enfabrica and a $20bn arrangement with its upstart chip rival Groq.

Groq sent the cash to its shareholders and shared top talent and intellectual property with Nvidia, but will continue operating its own small cloud business.  

“Nvidia wanted to be really quiet about it but it was hard to keep such a large deal under wraps,” says a person with knowledge of the deal, which was announced on Christmas Eve.

Jim Ryan, a partner at Morrison Foerster, says Big Tech’s growing adoption of acquihire structures “can offer valuable opportunities for founders and employees”. But, given the complexity of such arrangements, “they can also raise questions for investors”.

AI and private capital
Just four years ago, the private capital industry appeared to be entering a bleak era as the age of easy money came to an end. Interest rate rises threatened the sector’s highly leveraged portfolios. Now, however, such asset managers appear to have embarked on a new golden age, as the chief underwriters of tens of trillions of dollars for AI.

Investors poured a record $250bn into private infrastructure funds last year as capital flooded towards data centres, power generation and digital networks, according to S&P Global.

Apollo estimates nearly $3tn will be required for AI infrastructure up to 2028, with private credit and specialist funds expected to provide much of the financing.

“The demand for capital from this global industrial renaissance that we’re going through is just off the charts,” Marc Rowan, Apollo’s chief executive, told investors late last year.

For Apollo, the immense expenditure on energy and AI infrastructure offers the opportunity to use its vast pool of life insurance assets to become a long-term lender to promising companies. 

For smaller players in the private capital industry, particularly midsized buyout firms, the AI boom has been far more punishing. Valuations and margins have been compressed across large swaths of the software sector, intensifying a market shift in which scale is essential to survive.

All the while the giants are pursuing aggressive plays. Blackstone recently unveiled a $5bn plan to construct a “neocloud” from the ground up in partnership with Google.

The venture aims to deliver high-octane computing power for AI models, using Google’s proprietary microprocessors — a bet that could eventually reach a valuation in the tens of billions.

Blackstone argues that greenfield projects in emerging sectors at times can be more profitable than the traditional strategy of acquiring existing businesses at a steep premium.

“Winners haven’t been set yet. We are building at cost,” says Jas Khaira, the veteran Blackstone executive spearheading the Google partnership. “This is the biggest cycle in capital in my entire career.”

Will it end in tears?
The AI boom is good news for M&A, previously unfavoured companies, engineers hired at vast expense and the titans of private capital.

The rest of America is not so convinced. This month former Google chief executive Eric Schmidt was booed at the University of Arizona when he compared AI to the transformational impact of the computer in a commencement address.

“I know what many of you are feeling,” he added. “There is a fear in your generation that the future has already been written, that the machines are coming, that the jobs are evaporating.”

Across the American heartland, communities are mobilising against the rapid proliferation of sprawling data centres, citing the strain on local power grids as electricity bills soar. According to one recent NBC poll, AI is even less popular than the US’s disliked Immigration and Customs Enforcement agency.


Such strength of feeling may yet decide how far the AI revolution sweeps all before it — and how long the valuations premised on its success endure.

The SpaceX, OpenAI and Anthropic IPOs — all of which are due in the coming year — are designed to finance the relentless capital expenditure on the models behind the AI boom, one of the biggest peacetime investments in history. With such enormous sums at stake, some investors question the maths and the projected profits of the companies involved, evoking the memory of the dotcom bubble.

In the interim, global M&A is now dominated by the AI-inspired race to control the world’s energy, fibre networks and computing capacity.

For McClure at Goldman Sachs, the transformative power of the AI revolution is highlighted by the sheer ambition of utilities and other groups that have suddenly made their way into the limelight.

“A decade ago, these enterprises were categorised as stable, GDP-correlated performers,” he says. “The insatiable demand for data centres has pivoted them towards a trajectory of exponential expansion.”

The question is how long that exponential expansion can continue for the beneficiaries of the AI boom — and the dealmaking it has set off.