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- OpenAI and partners announce $500 billion Stargate project
OpenAI and partners announce $500 billion Stargate project
Also: AI-developed drug to begin trials by year-end, says Google’s Hassabis

Hi! The world of AI continues to buzz with groundbreaking advancements, from a massive infrastructure investment spearheaded by OpenAI to AI-driven drug trials and Adobe’s innovative tools for creatives. As quantum computing integrates with cloud offerings and economists reassess AI’s economic impact, the stage is set for a transformative 2025. Dive into the top stories shaping the future of AI, technology, and venture capital.
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🚀 OpenAI and partners announce $500 billion Stargate project
🧮 Google adds SandboxAQ’s quantitative AI models to cloud offerings
💊 AI-developed drug to begin trials by year-end, says Google’s Hassabis
📉 A new look at the economics of AI
The Stargate Project is a $500 billion initiative to develop advanced AI infrastructure in the United States over the next four years, beginning with an immediate $100 billion investment. Led by a partnership between OpenAI and SoftBank, with Masayoshi Son as chairman, the project aims to strengthen U.S. leadership in AI, create hundreds of thousands of jobs, and bolster national security while driving global economic benefits. Key technology collaborators include NVIDIA, Oracle, Microsoft, and Arm, with the first facilities already under construction in Texas and additional sites under consideration. This infrastructure will support OpenAI’s development of advanced models and technologies, including AGI, leveraging partnerships such as OpenAI’s extensive use of Microsoft’s Azure. The project emphasizes collaboration across sectors involved in data center infrastructure, aiming to use AI innovations to uplift humanity.
Google Cloud has partnered with SandboxAQ, a quantum AI startup, to integrate SandboxAQ’s large quantitative models (LQMs) into its offerings, marking the first time these models are available on a third-party platform. LQMs are designed to analyze large numerical datasets, perform advanced calculations, and automate tasks like financial modeling and trading strategies. This collaboration expands SandboxAQ’s customer reach and strengthens Google’s position in AI and quantum computing. SandboxAQ, valued at $5.6 billion following a $300 million funding round, applies its technology across industries like life sciences, financial services, and navigation. The partnership reflects Google’s broader focus on advancing quantum computing and supporting enterprise-level AI solutions**.**
Isomorphic Labs, a subsidiary of Alphabet and a spinoff from Google DeepMind, plans to begin trials of an AI-designed drug by the end of the year. The company, led by Nobel laureate Demis Hassabis, is targeting major disease areas like oncology, cardiovascular, and neurodegeneration. By leveraging AI, the drug discovery process, which traditionally takes 5–10 years, could potentially be accelerated tenfold. Isomorphic Labs collaborates with pharmaceutical giants such as Eli Lilly and Novartis and aims to enhance efficiency and reduce costs in drug development. Hassabis also highlighted Google DeepMind’s broader AI ambitions, including Project Astra, an AI assistant expected to launch this year, while stressing the need for global collaboration to safely develop and deploy AI technologies.
MIT Professor Daron Acemoglu, a Nobel laureate, offers a tempered perspective on the economic potential of AI in his paper, “The Simple Macroeconomics of AI.” He estimates that only 5% of U.S. labor market tasks will be profitably performed by AI within a decade, translating to a modest 1% GDP growth. While projections from organizations like McKinsey and Goldman Sachs suggest transformative economic impacts, Acemoglu highlights the challenges, including implementation costs, limited productivity gains, and mismatches in AI applications across industries. He advocates for a reorientation of AI development toward reliable, context-specific tools for problem-solving roles, such as healthcare and trades, rather than prioritizing generalized conversational models. He warns that without such focus, the transformative potential of AI may remain unfulfilled, and societal challenges like inequality and adjustment costs could offset its benefits.
🛠️ AI tools updates
Adobe has unveiled “Firefly Bulk Create,” a new generative AI tool designed to automate the editing of up to 10,000 images in one click. This innovation simplifies tasks like background removal, replacement, and resizing for various digital platforms, streamlining workflows for creatives without coding experience. The tool, currently in beta, integrates with Adobe’s Firefly APIs and includes features like automated background replacement using predefined images or HEX codes. Alongside these, Adobe is introducing AI-driven capabilities for video dubbing, lip-syncing in multiple languages, and automating design layouts for print and digital media. While the tool offers significant efficiency gains, limitations in beta testing suggest room for improvement in handling complex images. These features will be offered on a consumption-based pricing model through Adobe’s premium Firefly plan.
💵 Venture Capital updates
European VC firms are entering 2025 with optimism, driven by a resurgence in AI investments and an expected recovery in IPO activity. While VC investment in 2024 declined by 4.4% in value and 21.5% in deal count compared to 2023, signs of recovery are strong, with early-stage investments poised to lead the charge. AI startups are at the center of this growth, transitioning focus from foundational models to practical applications in industries like defense, manufacturing, and supply chain management. Despite high valuations returning to near-2021 levels, investors remain cautious, emphasizing real-world traction. IPO activity, spurred by high-profile listings like Klarna’s, is predicted to rise, although the lack of a centralized European tech exchange could drive more listings overseas. Structural reforms, cross-border innovation, and improved late-stage funding are seen as crucial for sustaining Europe’s competitive edge in the VC landscape.
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⭐️ Generative AI image of the day

Before you go, check out China’s vice-premier says chaotic competition on AI could bring ‘grey rhino’
