AI Newsletter

Nvidia is negotiating an investment in AI search startup Perplexity at a valuation of $30 billion – over 50% more than the previous funding round. Perplexity has increased its ARR to over $750 million. The deal signals that Nvidia is expanding its role across the entire AI value chain – from chips to the application layer.

Mistral announces European Compute Units, regional inference infrastructure, and support for third-party models (including GLM 5.2) – a strategic alternative to US-dominated AI infrastructure. However, Fortune rates Mistral as not yet technically competitive with OpenAI, Anthropic, or Google DeepMind. The move is politically significant as Europe increasingly pushes for digital autonomy.

OpenAI announces it will end model access for popular AI code editor Cursor by November 2026 after Cursor was acquired by SpaceX. Elon Musk called OpenAI executives 'completely unreliable,' underscoring the escalating rivalry between Musk and OpenAI. For developers, this means forced migration to alternatives like Claude Code or Gemini.

AI companies deliver record profits: The Bloomberg AI Value Chain Index exceeded analyst expectations last quarter by 71%. This confirms that the AI infrastructure and application layers are now measurably converting into revenue. The market acknowledges this with rising valuations across the sector.

An FT report argues that the largest economic impact from AI will not come from chatbots, but from 'Physical AI' – embodied AI in robots for manufacturing and logistics. AMD is upgraded to 'Strong Buy' by Raymond James, as agentic AI could drive the server CPU market to around $201 billion by 2030. Investors and corporations are already actively positioning themselves in this segment.