January 29, 2026 News

Amazon Considers $50 Billion Investment in OpenAI Amid Major Funding Round

OpenAI is pursuing a $100 billion funding round that could value the company at $830 billion, with Amazon reportedly negotiating to contribute at least $50 billion. Amazon CEO Andy Jassy is leading discussions with OpenAI CEO Sam Altman, despite Amazon's existing $8 billion investment in OpenAI competitor Anthropic. Other potential investors include Nvidia, Microsoft, SoftBank, and Middle Eastern sovereign wealth funds, with the deal expected to close by Q1 end.

Potential SpaceX and xAI Merger Could Create Integrated AI-Space Infrastructure Giant

SpaceX and xAI, both led by Elon Musk, are reportedly in talks to merge ahead of a planned SpaceX IPO, which would consolidate AI capabilities (including Grok chatbot), social media platform X, satellite infrastructure (Starlink), and space launch systems under one corporation. The merger could enable xAI to deploy data centers in space and follows recent cross-investments between Musk's companies, including Tesla's $2 billion investment in xAI. New corporate entities registered in Nevada suggest concrete steps toward integration, with SpaceX valued at $800 billion and xAI at $80 billion.

Apple Acquires Israeli AI Startup Q.AI for Nearly $2 Billion to Boost Audio and Hardware Capabilities

Apple has acquired Q.AI, an Israeli AI startup specializing in imaging and machine learning for audio processing, in a deal valued at nearly $2 billion. The acquisition aims to enhance Apple's AI capabilities in products like AirPods and Vision Pro, with Q.AI's technology enabling devices to interpret whispered speech and improve audio in noisy environments. This marks Apple's second-largest acquisition and reflects intensifying competition among tech giants in AI-powered hardware.

Google DeepMind Opens Project Genie AI World Generator to Ultra Subscribers

Google DeepMind has released Project Genie, an AI tool powered by Genie 3 world model, Nano Banana Pro image generator, and Gemini, allowing users to create interactive game worlds from text prompts or images. The experimental prototype is now available to Google AI Ultra subscribers in the U.S., limited to 60 seconds of generation due to compute constraints. DeepMind sees world models as crucial for AGI development, with near-term applications in gaming and robot training simulations.

New AI Lab "Flapping Airplanes" Raises $180M to Pursue Data-Efficient Training Approaches

A new AI research lab called Flapping Airplanes has launched with $180 million in seed funding from major venture capital firms including Google Ventures, Sequoia, and Index. The lab aims to develop less data-hungry training methods for large AI models, representing a strategic shift away from the industry's dominant focus on scaling compute and data resources.