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

• U.S. export curbs on high‑end GPUs are being sidestepped at scale: over $1 billion worth of B200, H100, and H200 processors have flooded into China via gray‑market routes through Southeast Asia, underscoring the difficulty of enforcing tech controls amid an escalating AI arms race.

• At a Federal Reserve event, Sam Altman issued a stark warning that AI‑powered voice cloning is about to render traditional voiceprint security obsolete, urging banks and regulators to adopt new authentication methods before deepfake‑driven fraud explodes.

• Meanwhile, OpenAI is gearing up to launch GPT‑5—its next multimodel “o3” system slated for August—combining specialized sub‑models under a single interface to deliver more flexible, task‑focused AI services that aim to leapfrog competing research labs.

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

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Hardware

Over $1B of Nvidia AI chips flooded into China via gray markets post-export curbs. Link.

• Financial Times reports B200 and H100/H200 processors bypassed U.S. restrictions through Southeast Asian route diversions.

• Gray-market distributors in Guangdong and Zhejiang exploited loopholes, selling banned GPUs to Chinese AI developers.

• Nvidia warns unauthorized systems lack support, but high demand persists amid China’s AI arms race.

• The influx highlights enforcement challenges of export controls and the complexities of U.S.-China tech competition.

FuriosaAI secures major LG deal to power its EXAONE 4.0 AI supercomputer with RNGD chips. Link.

• South Korea’s FuriosaAI rejected Meta’s $800M acquisition offer to partner with LG on its EXAONE 4.0 platform.

• June Paik’s startup provides cost-efficient, LLM-optimized processors as an alternative to Nvidia accelerators.

• The deal paves the way for global expansion beyond Korea, marking a rare non-Nvidia endorsement by a major electronics firm.

• Partnership underscores enterprise interest in diversifying AI silicon suppliers amid geopolitical supply-chain pressures.

Consumer AI Applications

Amazon acquires Bee, the AI wearable that auto-transcribes conversations into tasks and reminders. Link.

• $49 smart band and $19/month service listens to dialogue (muted by default) and generates searchable transcripts.

• Bee uses on-device AI and SynthID watermarking to ensure privacy and traceability.

• Adds to Amazon’s device lineup after Halo’s discontinuation, reinforcing Alexa ecosystem.

• Acquisition signals Amazon’s bet on personal AI wearables for continuous assistance in everyday life.

Enterprise AI Applications

Mixus launches AI “co-pilots” inside email and Slack to democratize enterprise agents. Link.

• Seed-backed startup integrates agents via simple email commands and chat prompts, keeping humans in the loop.

• Early customers automate project updates and email drafting from Jira, boosting productivity for non-technical staff.

• Mixus raised $2.6M to build a no-new-software layer over existing tools, addressing hallucination concerns.

• Concept underscores demand for seamless AI assistants embedded in daily workflows.

Product Launches

Google rolls out AI-powered virtual try-on for Shopping with realistic clothing overlays. Link.

• US users can upload full-body photos to see apparel from Google Shopping on themselves in real time.

• Tool integrates generative AI and Doppl tech to create try-on videos from static images.

• Enhances digital retail by enabling personalized fitting experiences, reducing return rates.

• Move highlights Google’s push to embed AI into commerce and challenge AR startups in fashion tech.

Content Creation

Elon Musk revives Vine “in AI form,” hinting at generative clip enhancements on X. Link.

• Musk announced Vine reboot almost a decade after original shutdown, leveraging AI for dynamic 6-second videos.

• Nostalgia-driven move aims to showcase X’s generative AI capabilities and re-engage short-form video audiences.

• No launch date provided, but users can expect AI-powered content generation to supplement user clips.

• Initiative reflects social media platforms’ interest in AI-first creative features to differentiate offerings.

Data Centers + Energy

OpenAI and Oracle to expand Project Stargate with additional 4.5GW of AI data center capacity. Link.

• Partnership will more than double planned 10GW capacity, building new U.S. data centers fueled by 2M+ AI chips.

• $500B+ initiative backed by SoftBank and the White House supports domestic AI infrastructure expansion.

• Stargate aims to provide high-scale compute for training future models like ChatGPT on American soil.

• Expansion underscores prioritization of sovereign AI supercomputing capability amid global competition.

Startup Funding & Valuations

Greptile secures $30M Series A at $180M valuation for AI code review. Link.

• The Series A, led by Benchmark’s Eric Vishria, values 22-year-old co-founder Daksh Gupta’s Greptile at roughly $180M after its Y Combinator-backed seed.

• Greptile’s “code coworker” tool autonomously identifies bugs and code issues, positioning it against Graphite’s $52M platform.

• Founder Gupta’s admission of intense work hours underscores the startup’s aggressive culture aiming to dominate enterprise code review automation.

• The funding signals strong investor conviction in AI-driven software development tools promising significant efficiency gains.

Asylon raises $26M Series B to scale autonomous drone-and-robot security service. Link.

• Insight Partners led the round for Asylon, which combines aerial drones and modified Boston Dynamics “Spot” units under a Robotics-as-a-Service model.

• Early customers, including Ford, have piloted its 24/7 robotic patrols after a CEO’s high-profile security incident drove demand.

• The financing brings Asylon’s total capital to $47M, funding expansion amid rising enterprise security concerns.

• Robotics patrols offer cost parity with human guards while enhancing situational awareness and eliminating human risk.

xLight locks in $40M to develop next-gen EUV lithography lasers for U.S. chip fabs. Link.

• Playground Global and ex-Intel CEO Pat Gelsinger back xLight’s laser tech to boost extreme ultraviolet throughput.

• Partnering with ASML, xLight aims to prototype production-ready EUV lasers by 2028 based on U.S. national lab innovations.

• The funding accelerates U.S. efforts to reclaim semiconductor manufacturing leadership against China’s heavy state investment.

• Higher-output lasers promise to drive wafer yields and reduce per-chip costs in advanced node production.

Gupshup secures $60M in equity-and-debt to pivot from messaging SMS leader to enterprise AI agents. Link.

• Globespan Capital and EvolutionX provided capital as Gupshup shifts focus from SMS in India to AI chatbots on WhatsApp and voice.

• Former unicorn valuation dipped below $500M before new financing, underscoring investor belief in an AI-driven enterprise communications pivot.

• CEO Beerud Sheth cites surging enterprise demand for conversational AI and plans expansion across India, LATAM, and MENA markets.

• The raise spotlights growing appetite for turnkey AI agent platforms that let companies deploy conversational interfaces without deep ML expertise.

Safety + Ethics

Sam Altman warns banks of impending fraud crisis as AI voice cloning defeats voiceprint security. Link.

• At a Fed event, Altman said voice authentication is “crazy” risk given near-perfect AI cloning tools.

• Regulators and banks urged to explore new verification methods to combat deepfake-driven scams.

• Highlighted AI’s ability to mimic speech and video, undermining traditional identity proofing.

• Warning spotlights urgent need for industry-wide overhaul of authentication protocols against AI threats.

OpenAI

OpenAI readies GPT-5 launch as multimodel “o3” system, targeting August debut. Link.

• The Verge report indicates GPT-5 will integrate specialized sub-models under one unified interface.

• CEO Sam Altman teased o3 model capabilities but cautioned timeline may shift based on development hurdles.

• Microsoft backing and internal pressure for advancement drive OpenAI’s race to outpace rival labs.

• Multimodel approach could mark a shift in how AI capabilities are packaged, emphasizing flexibility and task specialization.

OpenAI unveils $50M Community Fund to support nonprofits using AI for public benefit. Link.

• Fund targets education, healthcare, and economic empowerment projects via grants and partnerships.

• Advisory commission recommended structure to align OpenAI’s nonprofit origins with its for-profit growth.

• Public benefit corporation transition underpins commitment to equitable AI deployment.

• Program demonstrates industry-first major philanthropic initiative to steer AI towards societal good.

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