The Rundown: Edition 34 – DeepMind, AI 2.0, and a Beauty School Dropout
UK Research and Innovation launches first AI strategy
Hot on the heels of UK Research and Innovation announcing it would freeze new grants, the public body has unveiled plans to invest £1.6 billion in the AI sector over the next four years, forming part of a wider AI strategy. UKTN
Tech firms given 48 hours to remove abusive images
Under new plans proposed by Prime Minister Sir Keir Starmer, tech firms would have 48 hours to remove abusive images or risk having their services blocked in the UK. The measures would also require tech giants to detect and remove intimate images shared without consent. BBC
Accenture links promotion with AI use
The international tech consulting firm has told senior managers they need to demonstrate “regular adoption” of AI to progress. Despite employees voicing their concerns, Accenture has begun recording how frequently senior employees use AI tools. FT
Taxpayer-backed rocket maker Orbex collapses
A rocket maker that has received substantial public funding has failed to take off, falling into administration and making 163 staff redundant. Fellow Scottish rocket manufacturer, Skyrora, has said it is prepared to “protect UK space capabilities” and will look at acquiring Orbex’s assets. Times
Former DeepMind scientist raises $1bn
David Silver, one of the UK’s most prominent AI researchers, has raised $1 billion to build “superhuman intelligence” in a round led by Sequoia Capital. The funding – the largest seed round ever in Europe – values the business at £4 billion. FT
Fyld raises £32m to expand in the US
Fyld, which has developed technology that enables utilities and civil engineering workers to report their work quickly, safely and accurately, has raised £32 million in a round led by Energy Impact Partners, with participation from Partech. Times
Agentic AI platform Stacks secures $23m Series A
Stacks, an agentic platform for enterprise finance, has announced a $23 million Series A round led by Lightspeed Ventures, with additional funding from EQT Ventures, General Catalyst and S16VC. UKTN
Spacetech SatVu lands £30m from the NATO Innovation Fund
SatVu, which analyses operational activity and infrastructure performance from space, has raised £30 million with funding from the NATO Innovation Fund, the British Business Bank, Space Frontiers Fund II, and Presto Tech Horizons. BusinessCloud
“Stop booing tech giants”
Bill Ackman, CEO of Pershing Square Capital Management, has said that investors should “stop booing” tech giants’ enormous AI spending plans. The billionaire hedge fund manager believes 2026 is “going to be a very strong economic year for the US”. Times
School’s out for founders
University dropouts will be “the key” to tech success in Europe, which, unlike the US, has a structural problem that prevents founders from taking risks and starting early, according to Saaras Mehan, CTO and Co-founder of Jack & Jill. *To be read with ‘Beauty School Dropout’ by Frankie Avalon playing in the background* Sifted
New leather on the block
Stephanie Downs, CEO and Co-founder of UNCAGED Innovations, and Mike Smeed, Managing Director of InMotion Ventures, discussed UNCAGED’s development of a leather alternative designed to match the look and feel of traditional materials. The progress has attracted strong investor interest – including participation from InMotion Ventures – and led to a partnership with Natalie Portman. Global Corporate Venturing
Top 100 AI leaders named
Among the 100 most influential leaders shaping how AI is built, governed and scaled are Mustafa Suleyman, CEO of Microsoft AI; Rachel Schutt, Head of AI Labs at BlackRock; Arthur Mensch, CEO of Mistral AI; and Daniel Hulme, CAIO at WPP and CEO and Co-founder of Conscium. AI Magazine
AI 2.0?
Training and running large models strain data centre power, and relying on electronic chips risks economic and environmental costs. That’s why Nick New, CEO and Co-founder of Optalysys, advocates photonic computing, using light instead of just electrons, for more efficient, scalable compute. The company is also eyeing US expansion and a new capital raise. Sifted
US legal AI startup, Harvey, is in talks to raise $200 million at an $11 billion valuation, marking the latest success in the rise of legaltech. It’s also just announced a brand partnership with its namesake Harvey Specter, the smooth-talking and sharply dressed character from the hit TV show ‘Suits’ – or, rather, the actor who plays him, Gabriel Macht. While some law firms and tech companies are battling it out for top talent, Mishcon de Reya is doing something else entirely. The City law firm is using AI chatbots to conduct first-round interviews with graduates. Rather than completing a lengthy application form, candidates take part in a virtual interview where they can elaborate on their experiences and motivations. If more companies begin using AI in this way, will this help or hinder the 700,000+ graduates currently out of work?
Another thing Big Tech is shaking up: culture and performance. Tech giants are overhauling their policies to focus more on top performers, putting dependable employees at greater risk. AI is exacerbating this shift, and consequently, the “spectrum of employee performance is hardening into something more binary”. However, if you’re an employer and don’t want your staff to worry, you could focus on helping them feel less lonely. Joanna Jensen, Founder of Childs Farm and Chair of the EIS Association, suggests that this could be done by signing up to Kinnect, an app that helps employees organise offline moments, or by taking part in a cold-water swim with Chilly Dippers.