Welcome to the newest edition of ID Tech’s AI Update. Here’s the latest big news on the shifting landscape of AI and identity technology:
xAI has raised $10 billion in a new funding round that values Elon Musk’s AI startup at about $200 billion. If nothing else, it’s the latest testament to Musk’s ability to inspire investors and like-minded business people. For example, when Musk was putting together his Twitter takeover deal, he famously got Oracle co-founder Larry Ellison to commit to funding it via text message. When he asked how much Ellison would kick in, Ellison responded, “A billion…or whatever you recommend”.
OpenAI has reportedly sealed a manufacturing deal with Apple supplier Luxshare Precision to build a pocket-sized, context-aware AI device designed to work with its models. The firm recently announced a device-focused startup with former Apple designer Jony Ive, and has poached over two dozen of Apple’s consumer-hardware staff this year, spanning UI, wearables, camera, and audio.
Nvidia has spent over $900 million in a cash-and-stock deal to onboard Enfabrica, which specializes in networking silicon and software to connect very large GPU clusters, and recently unveiled an approach (EMFASYS) to ease AI memory bottlenecks and costs via DDR5 memory systems. The deal entails hiring Enfabrica co-founder and CEO Rochan Sankar and additional staff, and licensing its networking tech.
Nvidia has also revealed plans to invest about $5 billion in rival Intel as part of a strategic collaboration that will entail the development of “multiple generations” of chips for data centers and computers. Intel will design and manufacture custom x86 CPUs (and x86 SoCs for PCs) that integrate with Nvidia’s AI platforms via NVLink, while packaging work for some Nvidia parts will also involve Intel. But Nvidia says it will still rely mainly on TSMC for its own GPUs.
China’s Cyberspace Administration (CAC) has reportedly directed major tech companies to stop buying Nvidia’s AI chips and cancel existing orders, targeting in particular the RTX Pro 6000D that Nvidia tailored for China after U.S. export controls. It seems to be part of a push to focus on domestic supply chains. Beijing has not published a formal ban notice, but a Foreign Ministry spokesperson suggested a willingness to “maintain dialogue” with all parties when asked about the reports.
Meanwhile, SMIC is trialing China’s first domestically produced advanced chipmaking tool, an immersion DUV lithography machine built by Shanghai startup Yuliangsheng. The machine still contains some foreign components, and can only make chips at 28 nanometers right now, which lags far behind the 2 nm or smaller capabilities of EUV lithography machines from ASML in the Netherlands. But clearly the domestic industry is striving toward self-reliance.
Meta has filed to create an energy subsidiary, Atem Energy LLC, seeking the authority “to sell energy, capacity, and certain ancillary services.” As Bloomberg energy and commodities columnist Javier Blas put it, Meta’s move is “the latest example of how technology companies are shaping the future of electricity markets via their gargantuan power needs.” The filing follows Meta’s recent approvals for new natural gas plants serving its Louisiana AI campus, and mirrors maneuvers from Amazon, Google, and Microsoft, which already trade power to balance portfolios and monetize surplus.
On the consumer-facing side, Meta has unveiled new AI-infused smart glasses. The Meta Ray-Ban Display features a small in-lens display and is bundled with the Meta Neural Band, an EMG wristband for gesture control. The glasses can surface texts, navigation, captions, and translations in the user’s field of view, make calls, and tap Meta AI hands-free. But there were some glitches on stage when CEO Mark Zuckerberg tried to demo the product at a launch event. “I don’t know what to tell you guys,” he said. “I keep on messing this up.”
The chatbot’s take: I asked GPT-5 to help me highlight Javier Blas’ excellent book, The World for Sale.
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By Alex Perala
