Overview
- The largest U.S. startups raised a record $150 billion in 2025, with outsized rounds for OpenAI ($40 billion), Anthropic ($13 billion) and xAI ($10 billion), concentrating risk in a handful of AI leaders.
- Hyperscalers are set to invest hundreds of billions of dollars in AI infrastructure in 2026, with multi‑trillion dollar data‑center buildouts projected by McKinsey, intensifying cost, power and sustainability questions.
- Executives describe 2026 as a “show me the money” year, with warnings that aggressive spending could bankrupt firms and predictions that at least one foundational model may disclose near‑term cash shortfalls.
- Enterprise use of agentic AI is widespread—PwC reports 79% adoption—as companies automate workflows and, in many cases, shift toward smaller, task‑focused models for reliability and efficiency.
- Scrutiny is mounting, from the Bank of England’s sharp‑correction warning to concerns over deepfakes, cybersecurity and mental‑health harms, alongside new state rules such as California’s 2025 transparency and chatbot safety laws.