TL;DR

OpenAI, G42, Microsoft plan 5GW Abu Dhabi AI data center; US Series A deals down 79%; BlackRock, Fidelity drive $41.5B Bitcoin ETF inflows.

Highlights

• OpenAI and G42 plan a 5GW Abu Dhabi data center, with Microsoft investing $1.5B; SoftBank and Oracle also involved in broader Stargate AI infrastructure initiatives.1
• Nvidia to open a Shanghai R&D center and ship downgraded AI chips to China, as US export curbs boost Huawei 's share of the $50B China AI chip market.2
• US Series A VC deal count down 79% since Q1 2022; seed-to-Series A graduation rate falls to 15.5%; exit values for large deals remain strong.4
• Singapore’s GIC seeks CCI approval for a 2% stake in Groww ahead of its confidential IPO; Groww acquires Fisdom for $150M in cash.3
• US lawmakers propose bills to prevent AI chip smuggling, regulate Nvidia exports, and increase competition in defense AI/cloud contracts.6
• China launches first 12 satellites for a planned 2,800-unit AI space computing constellation led by startup ADA Space and Zhejiang Lab.9
• BlackRock and Fidelity increase crypto exposure; Bitcoin ETFs see $41.5B net inflows since January 2024, IBIT holds 53.6% share.11
• FDA approves Fujirebio’s Lumipulse blood test for Alzheimer’s, offering earlier, less invasive clinical diagnosis.13
• Airbnb launches redesigned app with “Services” and “Originals,” investing $100M+ to expand into broader travel/lifestyle offerings.8
• Tesla raises threshold for shareholder derivative lawsuits to 3% of shares ($33B) and forms a special committee on Musk’s compensation.10
• Apple faces US scrutiny over planned Alibaba AI integration in China; also to debut ultra-thin iPhone 17 Air with TDK silicon-anode batteries.515
• Poof launches open beta for no-code, prompt-based Solana app development, increasing accessibility for crypto project creators.7

Commentary

The current VC environment is marked by a sharp contraction at the early stage: US Series A deal activity has dropped nearly 80% since 2022, and seed-to-Series A graduation rates have fallen to 15.5%.4 Despite this, top-tier exit values remain robust, indicating that capital is consolidating around later-stage, proven companies.4 The prevalence of bridge rounds and lower dilution in Series A deals further highlights investor caution and selectivity.4 This trend is likely to persist, with large funds increasingly moving into private equity and public markets, and partners spinning out to pursue niche strategies.4

AI infrastructure continues to attract outsized capital and strategic partnerships. OpenAI’s planned 5GW Abu Dhabi data center, backed by G42 and Microsoft , exemplifies the scale and global reach of current AI buildouts.1 Nvidia ’s move to set up a Shanghai R&D center and ship modified AI chips to China reflects the ongoing regulatory and competitive pressures in the global AI hardware market, with Huawei gaining share amid US export controls.2 US legislative efforts to tighten chip export enforcement and promote competition in defense AI/cloud contracts may further shape the landscape for both startups and incumbents in AI and semiconductors.6

In fintech, GIC’s incremental investment in Groww and Groww’s $150M all-cash acquisition of Fisdom signal consolidation and IPO readiness in India’s digital finance sector.3 This activity may encourage further M&A and late-stage deal flow in emerging markets, even as global VC activity remains subdued.3

Institutional crypto adoption is accelerating, with BlackRock and Fidelity driving $41.5B in net inflows to Bitcoin ETFs since January.11 This liquidity and mainstream acceptance could benefit crypto infrastructure startups and exchanges.11 Meanwhile, Poof’s no-code Solana app builder and Airbnb ’s expanded platform underline ongoing efforts to broaden access and functionality in both crypto and consumer tech.78

For VCs, the focus should remain on late-stage AI and fintech opportunities, regulatory impacts on cross-border tech, and emerging platform plays in crypto and consumer applications.