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Scaling data volumes and sovereignty rules are pushing India's enterprises, GCCs, startups, and government toward a hybrid, increasingly on-prem AI infrastructure model.
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GPT-6.1 Astra performed worse than its predecessor in terms of accurately communicating what the model has done and following the boundaries set by users.
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Anthropic spent $7.33 billion on computing and infrastructure during the year, about 3x its 2024 spending and more than half of its total operating expenses.
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NVIDIA’s latest addition to its share buyback programme takes the total authorisation to $235 billion.
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This comes after PM Anthony Albanese subsequently expressed “extreme concern” to OpenAI CEO Sam Altman and criticised the company for taking “way too long” to notify Australian authorities.
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The new model costs $2 per million input tokens and $10 per million output tokens, while Anthropic says it requires fewer tokens to complete the same tasks.
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Anthropic devoted nearly a third of its hotly anticipated IPO prospectus to risk factors,according to the Financial Times, which says it has reviewed the filing in recent days. The filing details specific, worrisome behaviors that Anthropic says its models have already shown or could show, including attempts to “resist shutdown,” to “conceal or manipulate information,” and behavior “resembling blackmail,”according to Reuters. The disclosures are decidedly grim for a company whose own backers believe it could list above $2 trillion, more than double its $965 billion valuation from May, in potentially the biggest IPO ever. It’s a strange position for any company to be in — warning that its product could end humanity, while making some of its earliest investors and employees extraordinarily wealthy in the process. Reuters wasfirst to reporton the financial details within the prospectus on Monday, saying Anthropic recorded an operating loss of more than $8 billion in 2025 as spending on computing power surged, and that its revenue jumped twelvefold to nearly $4.6 billion, though rising infrastructure costs last year pushed total operating expenses to almost $13 billion. Also per Reuters, Anthropic’s prospectus further reveals plans to spend a whopping $518 billion on cloud, computing and infrastructure in the coming years. (Anthropic has already inked compute deals this year withGoogle,SpaceX, andNscale, among others toward that end.) The FT meanwhile reports that Anthropic’s numbers have moved even faster in 2026. Its second-quarter revenue alone reached $11.5 billion, and the company is on track for its second straight quarter of operating profit on an adjusted basis. According to the FT, the prospectus also flagged customer concentration, with nearly a quarter of last year’s revenue coming from just two clients. (No word yet on who these are.) The disclosures, which reportedly include “existential risks to humanity” — a first, judging by a quick scan of the SEC’s database — comes as hand-wringing quickly grows over AI safety. CEO Dario Amodei has spent the month publicly calling to “pace the frontier” of AI development, telling the UN Security Council last week that AI couldthreaten humankindand calling it “the most important global security issue facing the world today.” Rivals Sam Altman and Elon Musk have backed him up, too, in a rare moment of solidarity for competitors who’ve seemingly relished opportunities to disparage each other publicly. Another rival, Mark Zuckerberg, has meanwhileswatted away concerns, telling NBC News last week that he doesn’t “think that we need some kind of industrywide coordination.” The warnings follow a string of security incidents in which AI agents have breached outside systems. In fact, OpenAI disclosed last week that its tools have hacked “dozens” of external sites, including government one, includingthe SEC’s site itself. Earlier on Monday, it said it hadscrapped plansto release its newest model owing to safety concerns.
The Russian bank said GigaChat 3.5 Reasoning is the only Russian open-source model with a reasoning mode.
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The deal brings World Labs’ spatial intelligence research into AMD, with the companies working towards an open AI ecosystem.
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Bain expects new AI products across autonomous systems, robotics, physical AI, and other emerging applications to drive $4.2 trillion in additional revenue.
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It was the best of times, it was the worst of times … I’ll spare you the rest, but the cliché Dickens line really does sum up this year’s New York Climate Week. Much of the climate tech community — like the rest of the U.S. economy — is eagerly riding the AI wave. Some have reservations about thesheer quantity of natural gas power plantsbeing built to power AI data centers. But because many climate tech startups are energy-focused or energy-adjacent, the buildout has been embraced as an opportunity to get companies through thevalley of death. The singular focus also means some promising sectors risk being overlooked. It’s a continuation of a trend that’s emerged over the last year. As climate tech companies struggled to get financing — either because of canceled federal grants or investor hesitancy — those that could change their pitch to match the AI mania did so. The pivot has helped many climate tech startups land fresh funding from investors. Total venture deal value has risen for four consecutive quarters, cresting the $14 billion mark in the first quarter of this year, according to the most recent available data from PitchBook. It’s the best fundraising environment for climate tech in the last few years, with most of the deal value driven by sectors boosted by data center construction, including the built environment, grid infrastructure, and dispatchable energy that can be turned on or off when it’s needed. It’s an opportunity few have wanted to pass up. One exchange during a panel at New York Climate Week captured the moment: Two founders, when asked whether they’d prefer the AI buildout to proceed at its current pace or at a more climate-responsible speed, said without hesitation that faster was better. Unsurprisingly, both of their startups were in energy. And yet not everyone agrees. I heard from several founders who felt that the data center boom was distracting from other promising segments of climate tech, including those that were meeting their targets without having to rely on AI mania. “Corporates are still interested in climate,” one founder told me. The difference today is that large companies don’t want to crow about it, mostly for fear of drawing the Trump administration’s ire. There were also signs that the AI boom was beginning to wear thin on some. For many startups, money for scaling was hard to find three years ago, even if they were showing promising results. Now, customers are clawing their way into demos. “Where was this money three years ago?” I asked several people. I received more than a few knowing eye rolls in reply. It’s the world they live in these days, they acknowledged. The smart entrepreneurs are all finding ways to meet customers where they are. Ultimately, the undercurrent at New York Climate Week was that the data center party won’t last forever, but it might last long enough to help startups build durable businesses. Once that happens, they can refocus on the carbon-cutting mission they were founded to pursue.
AI inference infrastructure provider Modal Labs is nearing a $750 million funding round led by Accel at a $15.75 billion valuation that includes the investment, according to a source with knowledge of the funding. The size of the round has not been previously reported, though Axios and Bloomberg have reported other details of the deal. The new round would more than triple Modal’s valuation from the $4.65 billion it reached when it announced its $355 million previous fundraise just four months ago. Modal Labs declined to comment. The deal comes amid soaring demand for inference services, the process of running an AI model that’s already been trained to generate outputs, particularly from customers relying on open-source models. Other inference startups are also in talks to raise fresh capital at much higher valuations. Baseten is nearing an infusion of capital at a $26 billion valuation, doubling what it was worth in June,Bloomberg reported. Meanwhile, Fireworks and Fal, a startup providing inference for video and image generation, have also talked to investors about new rounds that would significantly increase their valuations, according toThe Information. Although revenue for these companies has been growing rapidly, their margins are thin, largely because the cost of acquiring or leasing compute remains very high. Fireworks announced in July that its annualized revenue had hit$1 billion, a fivefold increase from the year before. Multiple inference-focused startups are expected to reach the same revenue milestone by year’s end, according to our source. Modal was founded in 2021 by CEO Erik Bernhardsson and CTO Akshat Bubna. Bernhardsson, who is Swedish, spent more than 15 years building data teams at companies including Spotify, where he helped build the music-streaming service’s recommendation system, and Better.com, the online mortgage lender, where he served as chief technology officer. Bubna studied math and computer science at MIT and was an early staff engineer at Scale AI, the data-labeling startup, before co-founding Modal. The company, which is based in New York and estimated to have roughly 150 employees, lets developers train AI models and run other compute-heavy workloads without managing their own servers. Its web page lists customers that include the coding startup Cognition, the AI music generator Suno, the fintech company Ramp, and the publishing platform Substack. As of May, Modal had surpassed$300 millionin annualized revenue, it told Reuters at the time. The fundraising talks come two months after Modal was pulled into one of the AI industry’s most closely watched security incidents. In late July, Modal disclosed that a customer’s data had been compromised as part of the same hacking campaign carried out by a rogue OpenAI agent against Hugging Face. Modal Chief Technology Officer Akshat Bubna said the breach traced back to a flaw in a customer’s own code, not to Modal’s systems. “We’re aware a Modal customer published an unauthenticated endpoint that allowed anyone on the internet to use their sandboxes for code execution,” Bubnasaid in a statementto press outlets at the time. “This was used by the rogue agent. Modal’s platform was not compromised in any way,” he’d added.
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