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Read full article about: Nvidia reportedly in talks to acquire AI start-up AI21 Labs for up to $3 billion

Nvidia is reportedly in advanced negotiations to acquire Israeli AI start-up AI21 Labs, according to a report by Calcalist. The deal could be worth between two and three billion dollars. AI21 was valued at $1.4 billion during its last funding round in 2023, with both Google and Nvidia among its investors.

Similar to its recent Groq deal, Nvidia appears primarily interested in AI21's workforce. The company employs around 200 people, most of whom hold advanced degrees and have rare expertise in AI development. At the reported deal value, Nvidia would be paying roughly $10 to $15 million per employee.

AI21, based in Tel Aviv, was founded in 2017 by Professor Amnon Shashua, Professor Yoav Shoham, and Ori Goshen. The company builds large language models and offers software tools, including an agent builder. Its products target enterprise customers, with estimated annual revenue of around $50 million.

Read full article about: Nvidia plans H200 production ramp at TSMC while China debates whether to let the chips in

Nvidia's China business is ramping up again. According to Reuters, the chip company is in talks with contract manufacturer TSMC to expand production of its H200 AI chips to meet surging demand from China. Chinese tech companies have ordered more than two million H200 chips for 2026, but Nvidia currently only has 700,000 units available.

Production at TSMC is set to begin in the second quarter of 2026, with Nvidia planning to sell the chips for around $27,000 each. ByteDance alone, TikTok's parent company, plans to spend around 100 billion yuan (about $14 billion) on Nvidia chips in 2026, according to the South China Morning Post.

The Trump administration recently cleared H200 chip exports to China with a 25 percent fee attached. However, China hasn't approved the imports yet. Officials there are still debating whether access to advanced foreign chips might slow down the country's domestic chip industry. One proposal under consideration would require every H200 order to include a certain percentage of chips made in China.

China is also working on a rule that would require domestic chip manufacturers to use at least 50 percent locally made equipment.

Read full article about: Microsoft CEO Nadella reportedly enters "Founder Mode" to keep pace with AI rivals Amazon, Google, and Anthropic

Microsoft CEO Satya Nadella has reportedly entered "founder mode." According to the Financial Times, Nadella has shaken up Microsoft's management to keep pace with Amazon, Google, and startups like Anthropic. "Satya is trying to demonstrate a sense of urgency," one executive said. "The goal is to get out of some of the structures that exist and make the route to him easier."

Nadella has brought in several new executives, including former Meta technology chief Jay Parikh. Mustafa Suleyman, co-founder of Google Deepmind, now leads Microsoft's in-house AI development with his own budget and salary structure. The move has created internal friction, but Microsoft is accepting that to stay competitive for AI talent.

Microsoft remains strong overall, especially thanks to its Azure cloud AI services, but faces tough challenges ahead. The company will lose exclusive rights to OpenAI's research and models in the early 2030s, and OpenAI is no longer required to use Microsoft's data centers. Meanwhile, Copilot's 150 million users trail Google's Gemini (650 million) and ChatGPT (800 million). Nadella has reportedly already stepped in to influence development directly.

Read full article about: xAI snaps up Mississippi warehouse for third massive data center as Musk eyes two gigawatts of AI power

Elon Musk's xAI keeps growing its data center footprint. According to Musk and The Information, the AI company has snapped up a warehouse in Southaven, Mississippi, where it plans to build a third massive data center. Construction is set to begin in 2026. The new facility sits right next to xAI's existing Colossus 2 data center in Memphis. Musk says the expansion will push xAI's total computing power to nearly two gigawatts.

The new data center's name takes a jab at Microsoft. | Screenshot via X

The new data center goes by "Macrohardrr," a not-so-subtle dig at Microsoft. The name reflects Musk's ambition to build xAI into an AI software company that can go toe-to-toe with Microsoft. Back in early December, Musk teased the move on X, posting "MACROHARDER coming soon" in response to a satellite image showing the word "Macrohard" painted on the roof of Colossus 2.

Read full article about: Security researchers catch "privacy" browser extensions siphoning AI chats and selling them via a data broker

If you use a chatbot and an Urban browser extension, you might want to rethink that combination. Security researchers at Koi have found that eight browser extensions with more than eight million users combined are secretly harvesting AI conversations and potentially selling them to third parties.

Extension Chrome Edge
Urban VPN Proxy 6,000,000 1,323,622
1ClickVPN Proxy 600,000 36,459
Urban Browser Guard 40,000 12,624
Urban Ad Blocker 10,000 6,476

The extensions intercept conversations with ChatGPT, Claude, Gemini, Copilot, Perplexity, DeepSeek, Grok, and Meta AI. Even when the VPN is switched off, data collection continues in the background. Uninstalling the extension is the only way to stop it.

According to Koi, the data collection feature was quietly added in July 2025 through an automatic update. The data goes to Urban VPN's servers, and the privacy policy states that browsing data is shared with affiliate BiScience and that AI prompts are used for marketing analytics.

But the provider tells a different story in the Chrome Web Store, claiming data is not sold to third parties. Adding to the confusion, "Featured" badges from Google and Microsoft give users a false sense of security. Urban Ad Blocker for Edge is the only extension without a Featured badge.

Comment Source: Koi
Read full article about: Zara uses AI to dress models virtually instead of booking new photo shoots

Zara is using artificial intelligence to digitally edit photos of models. The Spanish fashion giant reaches out to models and asks for permission to reuse existing images, reports City AM from London. Using AI, the company then dresses the models in new clothes and places them in different settings, eliminating the need for new photo shoots. Two models told City AM they receive the same payment as they would for an actual shoot. But everyone else who would normally be involved in a photo shoot, from makeup artists to photographers and stylists, likely gets nothing.

Zara says AI will supplement traditional photo shoots, not replace them. The shift comes during a rough patch for the retailer, with UK sales hitting their lowest point in six months this past November. Competitors H&M and Zalando announced similar plans over the summer, creating AI-based "digital twins" of models.

Read full article about: AI fraud forces world's largest accounting body to end online exams

The Association of Chartered Certified Accountants (ACCA), the world's largest accountancy organization, will stop offering online exams starting March 2026. The decision comes as AI-powered cheating outpaces detection methods. "We're seeing the sophistication of [cheating] systems outpacing what can be put in, [in] terms of safeguards," ACCA CEO Helen Brand told the Financial Times.

The organization serves nearly 260,000 members and more than 500,000 students. Despite efforts to combat cheating, "people who want to do bad things are probably working at a quicker pace," Brand said. One student told the FT that a friend photographed exam questions and fed them into an AI chatbot. A recent study found that current reasoning models can pass the demanding CFA certification.

Online exams launched during the pandemic. The ACCA is now overhauling its qualification for the first time in a decade, adding focus on AI, blockchain, and data science. The ICAEW, another major accountancy body, still offers some online exams but reports rising fraud cases.

Read full article about: Oscar winners and Hollywood A-listers launch coalition to set AI rules for entertainment industry

The Creators Coalition on AI (CCAI) brings together filmmakers and artists pushing for common standards around AI use in the entertainment industry. Oscar winners Daniel Kwan and Jonathan Wang founded the group alongside actor Joseph Gordon-Levitt. Natalie Portman, Cate Blanchett, Paul McCartney, Guillermo Del Toro, and Mark Ruffalo have signed on as supporters.

The coalition isn't against AI outright—instead, it's pushing for clear guidelines. The group focuses on four main issues: getting consent and fair pay when creative work is used for training data, protecting jobs in the industry, establishing safeguards against deepfakes and misuse, and keeping human creativity at the center of the creative process. The CCAI aims to become a central hub for industry-wide conversations about these issues.

Comment Source: CCAI
Read full article about: Nvidia's $20 billion Groq deal sure looks like an acquisition as 90 percent of staff moves over

In case there was any doubt that Nvidia's Groq deal is anything but a takeover in disguise: according to Axios, roughly 90 percent of the workforce—including CEO Jonathan Ross and President Sunny Madra—is moving to Nvidia. Groq will continue as an independent company under new CEO Simon Edwards.

Though officially a non-exclusive license agreement worth around $20 billion, employees and shareholders are walking away with significant payouts. Staff moving to Nvidia get cash for vested shares and Nvidia stock for unvested ones; even those at Groq for less than a year will have their vesting cliff waived for immediate liquidity. Shareholders receive about 85 percent upfront, another 10 percent in mid-2026, and the rest by year's end.

Since 2016, Groq has raised around $3.3 billion from investors including Blackrock, Samsung, and Social Capital. They're now seeing substantial returns, as the deal pushed the startup's valuation from $7 billion to roughly $20 billion. For a more in-depth look at why Nvidia made this move, see my analysis.

Read full article about: OpenAI seeks new "Head of Preparedness" for AI risks like cyberattacks and mental health

OpenAI is hiring a Head of Preparedness. The position focuses on safety risks posed by AI models. OpenAI CEO Sam Altman points to the now well-documented effects of AI models on mental health as one example. Beyond that, the models have become so capable at cybersecurity that they can find critical vulnerabilities on their own.

This is a critical role at an important time; models are improving quickly and are now capable of many great things, but they are also starting to present some real challenges.

One of the key challenges for the new leader will be making sure cybersecurity defenders can use the latest AI capabilities while keeping attackers locked out. The role also covers safe handling of biological capabilities—meaning how AI models release biological knowledge—and self-improving systems.

OpenAI has faced criticism recently, particularly from former employees, for neglecting model safety in favor of shipping products. Many safety researchers have left the company.