TL;DR

SoftBank, OpenAI scale back $500B AI project; OpenAI, xAI plan 1M+ GPU deployments; Amazon acquires Bee.

Highlights

• SoftBank and OpenAI have sharply reduced their $500B “Stargate” AI data center plans, now focusing on a single Ohio site due to governance and supply chain issues.1
• OpenAI and xAI each announced plans to deploy over 1 million GPUs by year-end, with xAI targeting 50 million GPUs in five years, underscoring escalating hardware and capital demands in AI.8
• Microsoft has hired at least 24 Google DeepMind researchers, intensifying competition for AI talent among major tech players.9
• Amazon is acquiring AI wearable startup Bee, re-entering the consumer wearables segment with a privacy-focused, generative AI device.2
• Anthropic will seek investment from UAE and Qatar, reversing its prior stance and highlighting the growing influence of Gulf capital in frontier AI.5
• Slingshot AI launched Ash, a clinically-trained therapy chatbot, after raising $93M in a follow-on Series A led by Radical Ventures and Forerunner Ventures.6
• Ethena Labs’ StablecoinX raised $360M and will go public via SPAC, planning to acquire up to 8% of ENA tokens and offering equity exposure to the stablecoin sector.4
• Telegram rolled out its TON Wallet to 87M US users, integrating crypto services and expanding competition with fintech incumbents.10
• PNC Bank partnered with Coinbase to enable retail and institutional crypto trading directly through PNC accounts.13
• JPMorgan is considering Bitcoin - and Ethereum -backed loans, a significant step toward direct crypto collateralization by a major US bank.14
• Western Union confirmed plans to add stablecoin on/off-ramps to its digital wallets, aiming for faster, lower-cost global remittances.15
• Sanofi is acquiring UK biotech Vicebio for up to $1.6B to expand its respiratory vaccine pipeline.7
• Universal Music Group confidentially filed for a US stock listing amid EU scrutiny of its $775M Downtown deal.11
• Berkshire’s BNSF is evaluating a potential acquisition of a rival US freight railroad, signaling possible rail sector consolidation.12

Commentary

The AI sector continues to attract outsized capital and strategic attention, but execution risk is front and center. SoftBank and OpenAI ’s decision to scale back the “Stargate” project from a $500B multi-site vision to a single Ohio facility highlights the practical constraints facing large-scale AI infrastructure—namely governance, access to land, and supply chain bottlenecks.1 Despite these hurdles, OpenAI and xAI’s GPU buildout plans signal that demand for compute remains insatiable, with hardware and energy costs now a key gating factor for AI scale-ups.8 For VCs, this environment favors startups focused on AI infrastructure, chip supply, and energy optimization, but underscores the need for careful diligence on capital intensity and execution timelines.

The ongoing AI talent war is also reshaping the competitive landscape. Microsoft ’s recruitment of DeepMind researchers reflects the premium placed on top-tier AI expertise, likely inflating valuations for teams with proven research track records.9 Meanwhile, Amazon ’s acquisition of Bee2 and Slingshot AI’s funding and launch of a clinically-trained mental health chatbot6 demonstrate continued appetite for differentiated, vertical AI applications—particularly in consumer hardware and healthtech. These moves suggest that strategic buyers remain active, with M&A as a likely exit path for well-positioned startups.

In digital assets and fintech, institutional adoption is accelerating. Telegram ’s US wallet launch10, PNC ’s Coinbase partnership13, and JPMorgan ’s exploration of crypto-backed loans14 all point to a more integrated crypto-financial ecosystem. Western Union ’s move to add stablecoin capabilities15 further signals that established financial services players are seeking to modernize cross-border payments infrastructure. These developments are likely to support deal flow and valuations for startups providing crypto infrastructure, compliance, and integration solutions.

Elsewhere, pharma and industrials are seeing continued consolidation, with Sanofi ’s Vicebio acquisition7 and BNSF ’s potential rail buyout12. Universal Music Group’s confidential US listing, despite regulatory headwinds, reflects ongoing interest from global brands in US capital markets.11 These trends support robust exit opportunities for VC-backed companies in both traditional and tech-enabled sectors.