Good morning and welcome back to another edition of The AI Rundown by Lightscape Partners.

• Physical AI took over CES 2026, with robots, smart gadgets, and on-device AI chips everywhere, even if real-world capability still lags the hype. Humanoid demos from LG and others showed progress, but slow movement and narrow task scope underscored how far household robotics has to go. The real competition is shifting toward software quality and user experience as “AI inside” becomes table stakes.

• OpenAI and SoftBank’s $1 billion investment into SB Energy signals a deeper shift, with AI labs directly financing power and compute instead of relying only on clouds and utilities. The Texas Stargate site alone targets about 1.2 gigawatts of capacity, reflecting how training frontier models is now as much an energy problem as a software one. Similar moves by Meta into nuclear power highlight how AI demand is reshaping long-term infrastructure planning.

• On the funding side, two Lightscape portfolio companies announced new founding rounds last week. Articul8 announced a $70M Series C at a $500M valuation, and Profitmind announced a new investment and strategic partnership with Accenture. xAI’s reported $20 billion Series E shows investor appetite for frontier labs remains intact despite valuation concerns. Backed by sovereign wealth funds, Fidelity, and strategic partners like Nvidia, the round will bankroll larger training runs and new data center capacity. The scale reinforces how capital, compute, and model ambition are concentrating among a small set of AI power players.

Stay tuned as we explore these stories and their implications for the future of AI, technology, and innovation.

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Hardware

Physical AI gadgets and robots dominate CES 2026 as companies embed intelligence directly into hardware. Link.

• At CES 2026 in Las Vegas, exhibitors showcased robots, smart gadgets, and AI chips for on device intelligence.

• Humanoid robots from LG and others performed simple tasks, but slow movements highlighted how limited household robots remain today.

• Chipmakers such as Intel and AMD promoted processors with dedicated AI accelerators for faster local language and vision workloads.

• With nearly every product labeled intelligent, vendors now compete more on software quality and user experience than branding alone.

Intel launches Panther Lake laptop chips on its 18A process to regain ground in AI capable PCs. Link.

• New Core Ultra Series 3 processors use Intel’s 18A manufacturing, delivering roughly sixty percent better performance than Lunar Lake parts.

• Panther Lake combines redesigned transistors with improved power delivery to boost efficiency for AI heavy and graphics intensive workloads.

• The launch at CES 2026 marks Intel’s first high volume 18A product, a pivotal milestone in its manufacturing turnaround strategy.

• Executives say meeting the 18A timeline helps Intel compete more aggressively with AMD and Arm based rivals in premium laptop segments.

Models

DeepSeek prepares its V4 coding focused model to challenge Western leaders in developer oriented AI. Link.

• Chinese startup DeepSeek plans to launch V4 in February, optimized for long context programming prompts and complex software projects.

• Internal testing reportedly shows V4 surpassing some Anthropic and OpenAI models on code generation and debugging benchmarks.

• Company pitches V4 as a foundation for China’s domestic AI ecosystem powering developer tools, cloud services, and enterprise systems.

• If performance claims hold, V4 could intensify competition in AI assisted coding platforms used across global software engineering teams.

Enterprise AI Applications

Nvidia and automakers unveil new alliances at CES to rekindle stalled self driving programs with fresh AI platforms. Link.

• Nvidia introduced Alpamayo, an open source autonomous driving software stack designed to help carmakers accelerate system development.

• Its latest chips will power a Lucid, Nuro, and Uber robotaxi alliance as well as new Mercedes hands free driving features.

• Western automakers, under pressure from rapid Chinese robotaxi rollouts, increasingly rely on Nvidia hardware and software ecosystems.

• Partnerships signal a renewed push to commercialize self driving services after years of setbacks, write downs, and regulatory hurdles.

Accenture buys UK AI firm Faculty and names its CEO chief technology officer to bolster enterprise AI offerings. Link.

• Acquisition brings roughly four hundred Faculty specialists, many experienced in government analytics, into Accenture’s global AI practice.

• Faculty chief executive Marc Warner will become Accenture’s chief technology officer, shaping strategy around data platforms and AI services.

• Deal gives Accenture the Frontier platform, which unifies data preparation, experimentation, and deployment for complex machine learning projects.

• Move reflects mounting consolidation as consulting giants purchase niche AI firms to meet surging demand from corporate and public sector clients.

Data Centers + Energy

OpenAI and SoftBank invest one billion dollars into SB Energy to build a massive Texas AI data center. Link.

• Each company will put five hundred million dollars into SB Energy, which is constructing the Stargate data campus in Texas.

• Planned facility will deliver roughly one point two gigawatts of capacity for future large language model training and inference workloads.

• SB Energy will also use OpenAI products internally, expanding the partnership beyond physical infrastructure into digital transformation.

• The deal shows AI labs directly financing power and compute assets instead of relying solely on external cloud and utility providers.

Meta signs long term nuclear power deals to secure clean electricity for energy hungry AI data centers. Link.

• Company agreed to buy power from three existing United States reactors operated by Vistra in Ohio and Pennsylvania.

• Meta also partnered with Oklo and Last Energy to develop small modular reactors that could serve future campuses by the mid 2030s.

• Agreements cover up to six point six gigawatts of capacity, enough electricity to power millions of average homes when fully online.

• Arrangements highlight how AI driven electricity demand is pushing tech giants toward firm low carbon power with multi decade contracts.

Startup Funding & Valuations

Articul8 raises majority of $70M Series B at $500M valuation. Link.

• Articul8, an enterprise AI company spun out of Intel, has raised more than half of a planned $70 million Series B round at a $500 million pre-money valuation. Link.

• The round is structured in two tranches, with the first led by Adara Ventures, and is expected to fully close in the first quarter of 2026.

• Since its $100 million post-money Series A in early 2024, Articul8 has grown to 29 paying customers and surpassed $90 million in total contract value, while projecting over $57 million in annual recurring revenue this year.

• The company focuses on deploying specialized AI systems inside customer environments for regulated industries, and plans to use the new capital to expand R&D and scale internationally, particularly in Europe and parts of Asia.

Accenture invests in Profitmind to expand agentic AI in retail

• Accenture has invested in Profitmind through Accenture Ventures and entered into a strategic partnership to accelerate the adoption of agentic AI across retail operations. Link.

• The investment strengthens Accenture’s data and AI capabilities in retail, with Profitmind’s platform automating decisions across pricing, inventory, promotions, and planning using networks of explainable AI agents.

• Profitmind’s agentic AI is designed to bridge the gap between insight and execution, helping retailers respond in real time to market shifts while improving profitability and operational efficiency.

• The partnership will support global deployments, with Accenture and Profitmind jointly showcasing the platform at NRF 2026, while financial terms of the investment were not disclosed.

Elon Musk’s xAI reportedly closes a twenty billion dollar funding round backed by major investors. Link.

• Bloomberg reported xAI secured about twenty billion dollars in Series E funding, exceeding an earlier fifteen billion dollar target.

• Backers include Valor Equity, StepStone, Fidelity, Qatar’s sovereign wealth fund, and strategic investors such as Nvidia and Cisco.

• Capital will support larger model training runs, additional data center capacity, and expansion of xAI’s engineering and research teams.

• The raise underscores persistent enthusiasm for frontier labs even as some investors question lofty valuations across the AI landscape.

MiniMax raises roughly six hundred nineteen million dollars in a Hong Kong IPO that doubles on debut. Link.

• Chinese AI startup priced its shares at the top of the range, raising 4.82 billion Hong Kong dollars from investors.

• Offering was expanded to about 29.2 million shares after strong demand for the company’s multimodal foundation model platform.

• Stock price reportedly doubled on the first trading day, signaling appetite for domestic AI listings despite United States export curbs.

• MiniMax’s reception illustrates how Beijing’s push for homegrown AI champions continues attracting capital despite geopolitical uncertainty.

Evaluation startup LMArena hits a one point seven billion dollar valuation only months after launching. Link.

• Company announced a one hundred fifty million dollar Series A led by Felicis and UC Investments on January sixth.

• Round follows a one hundred million dollar seed raise in May, bringing total capital to roughly two hundred fifty million dollars.

• LMArena operates a crowdsourced model evaluation platform with about five million monthly users comparing leading commercial and open source systems.

• Rapid ascent to unicorn status shows investor belief that standardized benchmarks and leaderboards will shape commercial AI competition.

Shopify rival Swap secures one hundred million dollars six months after its previous funding round. Link.

• London and New York based Swap Commerce offers AI powered ecommerce infrastructure for luxury brands selling across international markets.

• New round follows a forty million dollar Series B, reflecting rapid adoption as brands seek more control than marketplaces provide.

• Company positions itself as a flexible alternative to Shopify for premium labels needing deeper customization and channel management.

• Back to back raises mark Swap as a significant player in AI driven retail technology despite intense competition from incumbents.

Andreessen Horowitz raises more than fifteen billion dollars across five new funds to double down on AI and deep tech. Link.

• New vehicles include a large growth fund and specialist pools for enterprise software, infrastructure, American Dynamism, and biotech.

• Latest fundraising brings assets under management to roughly ninety billion dollars less than two years after the prior capital raise.

• Partners say much of the new capital will target AI infrastructure, application startups, and defense related companies building dual use systems.

• Megafund highlights how top tier venture firms consolidate influence while many smaller funds struggle to secure limited partner commitments.

Regulation + Legal

Judge allows Elon Musk’s lawsuit against OpenAI to proceed to a jury over alleged betrayal of its nonprofit mission. Link.

• California federal court found sufficient evidence that OpenAI leaders assured Musk it would remain nonprofit before restructuring discussions.

• Musk claims he invested tens of millions of dollars and offered guidance before being sidelined when a capped profit arm was created.

• OpenAI argues the case is meritless harassment and says its Microsoft partnership still aligns with its original safety focused charter.

• Trial could expose internal emails and board deliberations that reshape public views on how leading labs balance mission and monetization.

US senators urge Apple and Google to remove X and its Grok chatbot over sexually abusive image generation. Link.

• Senators Ron Wyden, Ben Ray Lujan, and Ed Markey cite app store rules against sexually explicit or exploitative content.

• They reference reports that Grok generated non consensual sexual images of women and apparent minors on Elon Musk’s social platform.

• Letter warns allowing the apps to remain without stronger safeguards would undermine Apple and Google’s stated safety commitments.

• Pressure adds to mounting regulatory scrutiny of generative image systems that can quickly produce realistic deepfake pornography.

Safety + Ethics

xAI’s Grok image generator faces backlash after weak restrictions still allow abusive deepfake photos on X. Link.

• After criticism, xAI limited Grok image generation to paying subscribers, yet journalists found free users could still access similar outputs.

• Investigations documented non consensual bikini style images of women and minors, drawing condemnation from lawmakers and rights groups.

• European and United Kingdom officials warned the service may violate upcoming AI and online safety regulations targeting deepfake exploitation.

• Episode fuels calls for stronger guardrails, watermarking, and liability rules for platforms deploying powerful generative image tools.

OpenAI

OpenAI unveils ChatGPT Health to connect medical records and wellness data under stricter privacy protections. Link.

• New mode lets users link electronic health records and fitness data so ChatGPT can respond with personalized guidance and explanations.

• OpenAI says more than two hundred thirty million people already ask health related questions across its products every week worldwide.

• Company pledges not to train models on personal medical data and to add extra safeguards for particularly sensitive information.

• Launch positions ChatGPT as a potential digital health companion as big tech and startups race into AI powered care tools.

Report says OpenAI set aside a large stock grant pool as its valuation and funding ambitions surge. Link.

• The Information reported OpenAI created an employee equity pool worth about ten percent of the firm during autumn planning.

• Combined with prior awards, staff are said to control roughly twenty six percent of shares, reflecting a focus on retention.

• Company has reportedly discussed raising capital at valuations around seven hundred fifty billion dollars, up from five hundred billion last year.

• Generous grants show how frontier labs use equity to keep scarce researchers and engineers amid intense competition for talent.

Thank you for reading the AI Rundown by Lightscape Partners. Please send any questions, comments, or suggestions to [email protected].