TL;DR
OpenAI, Microsoft, and partners launch $500B AI data center; Nvidia eyes $750M quantum deal; Google debuts Android XR.
Highlights
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- OpenAI , SoftBank , Oracle , Microsoft , and Crusoe Energy launch $500B Project Stargate AI data center in Texas; $3.4B in JV funding and $2.3B in project financing secured 1.
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- Nvidia in advanced talks to invest $750M+ in quantum startup PsiQuantum; D-Wave’s Advantage2 launch boosts shares 20% 2.
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- Google debuts Android XR for smart glasses, partnering with Xreal, Samsung, and Warby Parker; up to $150M pledged for XR/AI eyewear development 3.
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- Microsoft -backed UK AI unicorn with $450M raised enters insolvency due to financial and leadership issues 4.
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- Catena Labs, founded by Circle’s Sean Neville, raises $18M seed led by a16z Crypto for AI-native banking; BioState AI raises $12M Series A led by Accel 5.
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- Sahara Labs launches SIWA decentralized AI testnet with $43M raised and 3.2M+ accounts; backed by Pantera, Polychain, YZi 6.
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- True Markets launches Solana-based DeFi app, raises $20M total (Accomplice, RRE, PayPal Ventures, Solana Foundation) 7.
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- Bitlayer Labs secures funding from MN Capital to expand EVM-compatible Layer 2 for Bitcoin ; 260+ projects deployed 8.
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- Peugeot Invest sells 35 PE funds for €227M to Committed Advisors, exits Stellantis, and transitions leadership 9.
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- Nvidia faces $15B sales loss and $5.5B write-off as US bans H20 AI chips to China; Huawei set to fill market gap 11.
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- Alphabet ’s Waymo gains CPUC approval to expand driverless ride-hailing in San Jose; 250,000 weekly trips now offered 14.
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- SpaceX targets May 27 for Starship Flight 9, first Super Heavy booster reuse pending FAA approval 15.
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- KTM secures €600M financing from Bajaj Auto to avert bankruptcy; production remains halted due to supply chain issues 12.
Commentary
The launch of Project Stargate—a $500B AI data center initiative backed by OpenAI , Microsoft , SoftBank , Oracle , and Crusoe—underscores the escalating capital requirements and consolidation in AI infrastructure. With $5.7B in early-phase funding already secured and long-term contracts in place, this project signals a shift toward mega-scale, vertically integrated buildouts. Early-stage and mid-market AI infrastructure startups may face tougher competition for capital and customers as hyperscalers and strategics dominate the landscape 1.
Nvidia ’s prospective $750M+ investment in PsiQuantum, paired with D-Wave’s commercial progress, highlights renewed momentum in quantum computing. This signals increased strategic interest in deep tech, but also suggests that VCs may need to partner with corporates or form syndicates to access the most promising quantum deals, given rising capital intensity and technical barriers 2.
On the application side, Google ’s Android XR platform and $150M commitment to XR/AI eyewear—alongside new partnerships with Xreal, Samsung, and Warby Parker—reflect a push to build out the spatial computing ecosystem. This creates openings for startups in AI-enabled wearables, developer tools, and adjacent software, but also raises the bar for technical differentiation and go-to-market partnerships in a space increasingly dominated by large incumbents 3.
Meanwhile, the insolvency of a Microsoft - and Qatar-backed UK AI unicorn with $450M raised is a cautionary signal for VCs: execution and governance risks remain acute even in well-funded, high-profile ventures. This may drive increased scrutiny on operational discipline and leadership in late-stage deals, especially in AI and fintech 4.
Crypto, DeFi, and blockchain infrastructure continue to attract capital: Catena Labs ($18M seed) 5, Sahara Labs ($43M for decentralized AI) 6, True Markets ($20M for Solana-based DeFi) 7, and Bitlayer Labs (MN Capital funding) 8 all point to sustained investor appetite for new financial primitives and on-chain AI. These rounds may serve as benchmarks for deal terms and valuations in the current market.