The AI Rundown by Lightscape Partners - 3/2/26

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

Portfolio highlight: Last week, Profitmind announced a $9 million Series A led by Accenture Ventures. We are thrilled to support the team as they continue to be a category leader in AI for retail. Read more about the company and our investment here.

• OpenAI has made headlines with a monumental $110 billion funding round, marking one of the largest private investments ever. This influx of capital, with significant contributions from Amazon, Nvidia, and SoftBank, is set to accelerate OpenAI's advancements in AI technologies, potentially reshaping the landscape of AI innovation and competition.

• AMD's shares surged by 8% following a massive $100 billion-plus AI chip deal with Meta Platforms Inc. This strategic partnership not only solidifies AMD's growing influence in the AI chip sector but also underscores the increasing demand for advanced computing capabilities in the tech industry.

• Nvidia continues to dominate the AI market with a remarkable 75% increase in data center revenue, surpassing Wall Street expectations. This financial performance highlights Nvidia's critical role in the growing AI and data center markets, reinforcing its position as a leader in the technology sector.

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

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Hardware & Compute

Nvidia Challenger AI Chip Startup MatX Raised $500M. link

• MatX was founded by former Google TPU engineers in 2023.

• The startup aims to compete with Nvidia in the AI chip market.

Edge AI Chip Startup Axelera AI Raises $250M+ Funding Round. link

• Axelera AI is a Dutch company specializing in AI chips for edge devices.

• The funding round was led by Innovation Industries, with participation from BlackRock and Samsung Catalyst Fund.

• Axelera AI's flagship product is an AI chip named Metis.

AMD Shares Jump 8% on $100B+ AI Chip Deal with Meta. link

• Meta Platforms Inc. will receive billions of dollars worth of chips from AMD.

• The deal includes an option for Meta to acquire up to a 10% stake in AMD.

• This partnership highlights AMD's growing influence in the AI chip sector.

CoreWeave’s Stock Falls Amid AI Spending Plans. link

• CoreWeave Inc., a cloud infrastructure company, saw its shares drop over 9% following a larger-than-expected quarterly loss.

• The company reported a fourth-quarter adjusted loss per share of 56 cents and provided a weak revenue forecast.

• CoreWeave is focusing on scaling up its AI-related expenditures, indicating a strategic pivot towards AI infrastructure.

Nvidia's Data Center Revenue Soars 75%. link

• Nvidia Corp. exceeded Wall Street expectations with a 75% surge in data center revenue, boosting its stock in after-hours trading.

• The company's net profit increased by 94% year-over-year, reaching nearly $43 billion.

• Nvidia's strong performance underscores its pivotal role in the AI and data center markets.

Infrastructure

Encord Secures $60M to Boost AI Data Infrastructure for Robotics. link

• Encord aims to transition robots and drones from labs to real-world applications.

• The Series C funding was led by Wellington Management, with participation from Bright Pixel and Isomer Capital.

• Existing investors include Y Combinator and CRV, highlighting strong backing from prominent venture firms.

Public Backlash Against AI Data Centers Intensifies. link

• The rapid expansion of data centers is facing increasing public opposition.

• Some regions are considering strict policies, including bans on new data center construction.

• The backlash highlights growing environmental and community concerns over infrastructure development.

Sam Altman Defends AI's Energy Use Amid Infrastructure Concerns. link

• Altman addressed AI's environmental impact during an event in India.

• He argued that AI's energy consumption is not significantly higher than other technologies.

• Elon Musk's idea of space-based data centers was criticized as impractical.

Fundraises

OpenAI Raises $110B in Historic Funding Round. link

• The funding includes $50 billion from Amazon, and $30 billion each from Nvidia and SoftBank.

• This investment values OpenAI at $730 billion, marking one of the largest private funding rounds ever.

• The funds will likely accelerate OpenAI's development and deployment of AI technologies.

AI Startup Basis Secures $100M at $1.15B Valuation. link

• Basis focuses on automating structured accounting workflows using AI agents.

• The funding will be used to enhance platform development and increase workforce.

• Investors include Accel, Avid Ventures, and Khosla Ventures, among others.

Profound Raises $96M for AI Discovery Monitoring Platform. link

• The funding values Profound at $1 billion, supporting expansion of its AI visibility and automation platform.

• Founded in 2024, Profound aims to enhance enterprise usage and develop analytics capabilities.

• Investors include Kleiner Perkins, Lightspeed Venture Partners, and Sequoia Capital.

Nimble Raises $47M to Scale Agentic Web Search Platform. link

• Nimble plans to use the funds to expand its multi-agent research capabilities and web data infrastructure.

• Founded in 2021, the company was initially known as The Data Company Technologies Inc.

• Investors include Hetz Ventures, Norwest, and Slow Ventures.

Applied AI

ServiceNow Launches AI Automation Tools for Workforce. link

• ServiceNow introduced two cloud services, Autonomous Workforce and EmployeeWorks, to automate manual tasks using AI.

• The initial release includes a tool called Level 1 Service Desk, aimed at speeding up specific chores.

• These tools are designed to enhance productivity by reducing the time spent on repetitive tasks.

Google Integrates Robotics Software Firm Intrinsic to Boost Physical AI. link

• Intrinsic, originally part of Alphabet's X Moonshot Factory, is now under Google's core operations.

• The move aims to accelerate the development of AI applications in real-world industrial environments.

• This integration highlights Google's strategy to expand AI beyond digital realms into physical applications.

Anthropic Expands Enterprise AI with New Plugins. link

• Anthropic is targeting enterprise clients with new AI plugins for finance, engineering, and design.

• This initiative poses a competitive threat to existing SaaS products in these sectors.

• The move is part of Anthropic's broader strategy to deepen its presence in the enterprise market.

Model Releases

Guide Labs Debuts Interpretable LLM. link

• Guide Labs has open-sourced Steerling-8B, an 8 billion parameter language model.

• The model features a new architecture aimed at making its actions easily interpretable.

• This release could enhance transparency and trust in AI applications.

Autonomous Systems

Uber CEO Envisions Robot-Operated Rides in 20 Years. link

• Dara Khosrowshahi, CEO of Uber, predicts a significant shift towards autonomous vehicles in the ride-hailing industry.

• The transition to robot-operated rides could lead to substantial job displacement, prompting business leaders to prepare for AI's impact on employment.

• This vision aligns with broader trends in autonomous systems, where companies are increasingly investing in AI-driven solutions to enhance efficiency and reduce costs.

Defense & Security

OpenAI Secures Pentagon Deal with Safeguards. link

• OpenAI's CEO Sam Altman announced a defense contract with the Pentagon, emphasizing the inclusion of technical safeguards.

• The deal addresses concerns similar to those that led to disputes between Anthropic and the Pentagon.

Anthropic Challenges Pentagon's 'Supply Chain Risk' Label. link

• Anthropic argues that the Pentagon's potential blacklisting of its technology is legally unfounded.

• The dispute arose after negotiations over military applications of Anthropic's AI models failed.

Trump Moves to Ban Anthropic from Government Use. link

• The ban follows pressure from the Defense Department on Anthropic to relax restrictions on military use of its AI.

• This move marks a significant escalation in the ongoing conflict between Anthropic and the U.S. government.

Anthropic CEO Resists Pentagon's AI Demands. link

• CEO Dario Amodei refuses to grant the Pentagon unrestricted access to Anthropic's AI systems.

• The standoff highlights tensions over control and ethical use of AI in defense applications.

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