AI is no longer just a trend, It's reshaping entire industries.

Happy Thursday everyone and Happy Christmas!

Welcome to AI Weekly Digest 📬 Your essential AI briefing, carefully curated by me, Rubén Colomer, AI Specialist and GP at Next Tier Ventures. Stay ahead of the curve with the latest AI breakthroughs, key funding news, innovative tools, thought-provoking reads, and the best AI job opportunities - it's all here!

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News 🗞️📰

• State-of-the-Art Video and Image Generation with Veo 2 and Imagen 3: Google DeepMind introduces Veo 2, a video generation model achieving realistic, high-quality outputs with advanced cinematography capabilities, and Imagen 3, an upgraded image generation model producing richer details and diverse art styles. Both tools are now accessible through VideoFX, ImageFX, and the new experimental tool Whisk, which allows users to combine and remix images for creative visualizations.
• SoftBank's $100 Billion AI Investment in the U.S: SoftBank, led by CEO Masayoshi Son, announced plans to invest at least $100 billion into U.S. technology projects over the next four years, focusing on artificial intelligence and related infrastructure. This investment is expected to create 100,000 U.S. jobs.
• Alibaba launches $150m fund for AI startups: On its tenth anniversary, the Alibaba Hong Kong Entrepreneurs Fund unveiled a $150M NextGen Fund to invest in AI startups solving structural challenges. Target sectors include financial services, retail, healthcare, construction, and entertainment. Growth-stage companies will gain resources, networks, and global expansion support, leveraging Alibaba's ecosystem.
• How the food industry is transforming with AI: Mondelez International leverages AI to revolutionize snack innovation. The company’s AI tool refines recipes for brands like Oreos and Chips Ahoy, optimizing flavor, aroma, and sustainability. This technology accelerates product development, enabling iterations like the Gluten Free Golden Oreo while maintaining brand identity.
• Conversational AI is the next web browser: Mustafa Suleyman, CEO of Microsoft AI, envisions conversational AI as a transformative computing platform, replacing traditional interfaces like search engines and web browsers. He highlights Microsoft’s focus on integrating AI across products like Bing and Copilot while estimating artificial general intelligence (AGI) could be achievable within 5–10 years.
• AI transforms advertising, reshaping industry giants: The merger of Omnicom and Interpublic into a $30 billion entity highlights the seismic shift AI is driving in the advertising world. The combined company plans to invest heavily in AI to personalize campaigns, optimize consumer insights, and streamline operations, reflecting the industry's pivot from traditional creative approaches to data-driven, generative AI solutions.
• Microsoft acquires twice as many Nvidia AI chips as tech rivals: Microsoft has significantly increased its investment in Nvidia's AI chips, acquiring 485,000 of the latest "Hopper" chips in 2024—double the amount purchased by competitors like Meta, Amazon, and Google. This strategic move aims to enhance Microsoft's AI infrastructure and maintain its competitive edge in developing next-generation AI systems.
• AI cameras detect drunk and impaired drivers in UK trial: New AI-powered cameras, developed by Acusensus, are being tested by Devon & Cornwall Police to identify signs of driver impairment. These cameras analyze vehicle behavior and alert nearby officers for further roadside testing, addressing the decline in traffic police and enhancing road safety.
• Microsoft Introduces 'Recall' AI Feature in Windows 11: Microsoft introduced an AI feature called Recall on Windows 11, which takes snapshots of screen activity to create a timeline for easy reference. Despite initial privacy and security concerns, the feature has shown practical advantages in recalling past information quickly. Recall is currently limited to Copilot Plus PCs

Funding 💼💸

• Databricks' $10 Billion Funding Round: Databricks secured a $10 billion funding round led by Thrive Capital, elevating its valuation to $62 billion. The company plans to utilize the funds for developing new AI products, acquisitions, and expanding its global presence.
• KPMG to lead UrbanChain’s $63M Series B fundraise: CleanTech company UrbanChain, led by CEO Somayeh Taheri, has appointed KPMG to raise over $63M to accelerate global expansion. With 10x revenue growth to $31M in 2024, the UK-based company aims to scale its AI and blockchain-driven energy ecosystem across Europe and the US while addressing fuel poverty and sustainability goals.
• Maisa secures $5M Pre-Seed to pioneer traceable AI for complex tasks: Spanish DeepTech startup Maisa, led by CEO David Villalón, has raised $5M in Pre-Seed funding led by NFX, with participation from Village Global and other notable investors. Maisa's Vinci KPU platform delivers auditable AI reasoning, addressing the 'black box' problem and ensuring transparency for business-critical applications.
• Synthavo secures €4M investment for AI-powered spare parts platform: German startup Synthavo, led by CEO Sebastian Stöcklmeier, raised €4M in a Seed round co-led by Samaipata and Senovo. Synthavo’s AI-powered platform helps manufacturers identify and order spare parts in seconds, improving efficiency and reducing downtime. The funding will support team growth, European expansion, and entry into the US market.
• Dallas Venture Capital backs Fiddler AI’s $50M Series B round: Palo Alto-based Fiddler AI, led by CEO Krishna Gade, raised $18.6M in a Series B extension, totaling $50M. The company specializes in AI observability and safety, enabling enterprises to deploy trustworthy and scalable LLM and ML applications. New investors include Dallas Venture Capital, Cisco Investments, Capgemini, and Samsung Next, alongside existing backers like Insight Partners and Lightspeed.
• Comand AI raises €8.5M to build battlefield AI software: Paris-based Comand AI secured €8.5M in seed funding led by Eurazeo, with Frst and Expeditions Fund participating. The startup, founded by Loïc Mougeolle, develops AI-driven strategy planning software for military officers, enabling faster and more efficient mission planning. The funds will fuel expansion into NATO countries, scaling products, and hiring top AI talent, including former OpenAI and Palantir engineers.
• Liquid AI raises $250M to develop efficient AI models using liquid neural networks: AI startup Liquid AI, co-founded by robotics expert Daniela Rus, secured $250M in a Series A led by AMD at a $2B valuation. The company develops "liquid neural networks," smaller, flexible AI models requiring less computing power. Liquid AI plans to tailor these models for e-commerce, consumer electronics, and biotech, while collaborating with AMD to optimize performance on its processors and AI accelerators.
• Askel.ai raises €380K Pre-Seed to revolutionize workflow automation: Estonia-based Askel.ai secured €380,000 in a pre-seed round led by Superangel, with participation from prominent investors including Manuel Huez, Patrick Malatack, and Ott Kaukver. The SaaS platform enables companies to embed no-code automation directly into their products, allowing non-technical users to automate repetitive tasks using natural language. Founded by Joosep Kõljalg, former Twilio engineering director, Askel.ai aims to streamline operations and significantly boost efficiency.
• Eyva.ai raises €2.7M to revolutionize beauty product development with AI: Cologne-based eyva.ai has secured €2.7 million in seed funding, led by Earlybird and WENVEST Capital, to optimize product portfolio development for beauty and personal care brands. Founded by Djef Riady Rifamole in 2022, eyva’s AI-driven platform cuts research times by 90% and accelerates product concept development by 60%.

M&A 💰

• HubSpot leverages AI to revolutionize customer insights with Frame AI acquisition: HubSpot has announced the acquisition of Frame AI, a conversation intelligence platform that transforms unstructured data—like emails and calls—into actionable insights. Led by Frame AI’s CEO George Davis, the acquisition aims to enhance HubSpot’s ability to deliver real-time customer sentiment and behavior analysis, empowering businesses to anticipate needs, optimize campaigns, and prevent churn.
• Grammarly to acquire Coda, evolving into an AI productivity platform: Grammarly is set to acquire productivity platform Coda, integrating its AI assistant with Coda’s tools to create a comprehensive AI productivity platform. The move will leverage Coda’s capabilities, such as Coda Brain, to enhance workplace efficiency and enterprise collaboration. Shishir Mehrotra, Coda’s CEO, will lead the unified company, signaling Grammarly’s commitment to redefining productivity in the AI era.
• HEALWELL AI accelerates healthcare transformation with $115M acquisition of Orion Health: Canadian healthcare AI leader HEALWELL AI is acquiring New Zealand-based Orion Health for $115 million. This "game-changer" deal will combine Orion Health's advanced healthcare data management systems, used in 11 countries, with HEALWELL’s AI capabilities
• ZenaTech leverages Quantum Computing and AI for wildfire management through new acquisition: ZenaTech has signed its third LOI to acquire a land survey company in the Western US, establishing a regional drone operations hub. This acquisition integrates AI drones with Quantum Computing to manage large-scale wildfire datasets, improving fire detection, response, and prevention. The initiative builds on ZenaTech's Drone as a Service (DaaS) model and partnerships with Native American groups for advanced applications such as land surveys and fire management.
• Tools for Humanity acquires Modulus Labs to enhance AI accountability with cryptography: Tools for Humanity (TFH), a contributor to the World ID biometric project, has acquired Modulus Labs. Modulus Labs, known for its cryptographic system "Accountable Magic," uses zero-knowledge proof protocols to ensure AI algorithm integrity and prevent manipulation. This technology will integrate into TFH's World ID system, enabling verifiable "humanness" and safer online interactions while paving the way for accountable AI applications in areas like digital identity and secure algorithmic outputs.
• Cohu acquires Tignis to revolutionize AI-driven semiconductor process control: Cohu, led by CEO Luis Müller, has acquired Tignis, an AI and machine learning specialist in process control for semiconductor manufacturing. This acquisition expands Cohu’s capabilities in predictive analytics and process optimization, integrating Tignis' PAICe platform and Digital Twin Query Language (DTQL). Tignis CEO Jon Herlocker emphasized the alignment with Cohu's vision to accelerate AI/ML adoption in manufacturing, targeting the $2.6 billion process control market to enhance yield, quality, and operational efficiency.
• Calabrio enhances AI-driven contact center solutions with Echo AI acquisition: Calabrio, led by CEO Dave Rhodes, has acquired Echo AI, a generative AI-native conversation intelligence platform. This integration amplifies Calabrio’s ability to analyze customer interactions across channels, providing actionable insights for improved customer experiences and operational efficiency. Echo AI’s advanced technology enables automated quality management and agent coaching, aligning with Calabrio’s vision for AI-augmented contact centers. Echo AI CEO Alex Kvamme emphasized the shared commitment to leveraging generative AI to revolutionize customer service
• Stagwell expands global AI footprint with UNICEPTA acquisition: Stagwell, led by CEO Mark Penn, has acquired UNICEPTA, a media intelligence platform serving Fortune Global 500 companies. With over 30 years of expertise, UNICEPTA will enhance Stagwell’s PRophet Comms Tech Suite, providing AI-driven media monitoring and analytics. Co-CEOs Sebastian Rohwer and Alexander Peinemann will continue to lead UNICEPTA, which spans eight countries and four continents.

Interesting Reads 💡🤔

• How VCs are Shaping AI in the Top 5 Economies: The US leads with $290B in AI VC funding, focusing on autonomous vehicles, healthcare, and IT modernization. China drives industrial modernization with $120B invested, prioritizing robotics and AI hubs. Japan tackles demographic challenges through AI integration and international collaborations. India boosts AI-driven productivity, projecting a $17B market by 2027. Germany emerges as a hub for AI research, attracting US tech giants and doubling its AI funding to compete globally.
• a16z's "Big Ideas in Tech 2025" highlights transformative AI trends: Andreessen Horowitz's latest report identifies AI as a key driver of innovation in 2025. The report explores advancements in generative AI, AI-powered biotech solutions, and its integration into fintech and climate tech. These developments underscore AI's expanding role in reshaping industries, offering strategic insights for investors and startups to capitalize on emerging opportunities.
• AI in Business: Applications and Use Cases for 2024: AI is transforming industries with real-world use cases, from predictive maintenance in manufacturing to fraud detection in finance and robot-assisted surgery in healthcare. Businesses leverage AI for automation, efficiency, and insights, driving growth in sectors like logistics, retail, and public safety. As AI adoption accelerates, its potential to optimize operations and decision-making continues to grow.
• AI Trends in Venture Capital: 2024 Investment Insights and Outlook: AI is reshaping venture capital, with generative AI alone projected to attract $12 billion in global investment by 2024. VC firms are increasingly leveraging AI tools for predictive analytics and deal sourcing, while focusing on high-growth sectors like healthcare, fintech, and climate tech. The rising competition for AI deals highlights the need for responsible, ethical investment practices to navigate regulatory challenges and maximize returns.
• Law Firms Adapt to Expanding Legal Risks Driven by AI and Workplace Challenges: US law firms are evolving to address emerging legal risks, from generative AI compliance and data privacy to workplace cultural disputes. Firms are innovating with AI tools for regulatory analysis and risk mitigation, while creating specialized teams to manage issues like DEI conflicts and increasing regulatory enforcement.
• European AI Sees Surge in VC Mega-Rounds: Venture capital investment in European AI startups is rebounding, with €11 billion invested across 1,605 deals so far in 2024. Deal value is on pace to reach €13.2 billion, a 20% increase from 2023. Mega-rounds, including Wayve's $1.05B Series C and Mistral AI's $640M Series B, are driving growth, solidifying AI as Europe's second-largest vertical after SaaS.
• Rethinking AI: From Instrumental Reason to Ecological Intelligence: Generative AI’s rapid rise has amplified debates around its societal role, democratization, and impact. While modern AI prioritizes efficiency and problem-solving, its origins in Cold War rationality have constrained its potential. Alternatives rooted in ecological reason—emphasizing creativity, curiosity, and collective intelligence—could reshape AI’s role in society. Historical experiments like Chile’s Project Cybersyn highlight the need for political projects that prioritize human-centered technology over market-driven efficiency.

Startups / Tools 🧰🛠️

• NotebookLM : Google Labs has unveiled a redesigned NotebookLM with three distinct panels—Sources, Chat, and Studio—streamlining content management and creation. New Audio Overview interactivity allows users to engage with AI hosts in real-time using voice commands.
• Tango: An AI-powered tool that automatically documents your workflows while you work, creating step-by-step guides with minimal effort. Perfect for building tutorials and SOPs.
• MailMaestro: A powerful AI email assistant that helps you compose, reply, and organize emails efficiently by generating clear, concise, and professional email content.
• Otter.ai: An AI tool that transcribes meetings and conversations in real-time, allowing you to focus on discussions instead of note-taking.
• Reclaim.ai: An intelligent calendar assistant that automatically schedules your tasks, meetings, and breaks, ensuring you maximize productivity.
• Descript: An AI-driven platform that allows you to transcribe, edit, and produce audio and video content effortlessly. It works like a word processor for multimedia projects.
• Writesonic: An AI content generation tool that creates high-quality marketing copy, blog posts, and social media content in seconds, saving time for content creators.
• TaskMagic: An AI-powered browser automation tool that records and replicates workflows, automating repetitive tasks to help save time.
• Superhuman: An AI-enhanced email productivity tool that prioritizes emails, schedules follow-ups, and provides smart suggestions to streamline inbox management.
• Mem: An AI-powered note-taking tool that automatically organizes your information and connects related notes, ensuring you can quickly retrieve relevant data.

NTV Highlights 🪩🎉

€50 Million AI Startup Fund Launched by GVC Gaesco and Next Tier Ventures Yesterday, several media outlets announced the launch of our joint venture with GVC Gaesco and the approval of our €50 million fund by the National Securities Market Commission (CNMV). Named Next Tier GVC Gaesco S.C.R.S.A., the fund will target 30–35 B2B AI startups across Europe, the U.S., and Latin America, focusing on transformative AI technologies.

Led by my partner Patricia Pastor and myself, this initiative combines GVC Gaesco’s financial expertise with our extensive experience in tech investments. It’s a significant step in positioning ourselves as leading AI investors in Spain and Latin America, and we couldn’t be more excited to get started!

Next Tier Ventures Heads to Punta Tech Uruguay in January 2025 We're excited to announce that Next Tier Ventures will be attending Punta Tech Meetup this coming January in Punta del Este, Uruguay. As one of the most anticipated networking events in Latin America, Punta Tech brings together tech leaders, entrepreneurs, and investors to foster connections and strengthen the region's tech ecosystem.

We look forward to engaging with like-minded innovators and exploring new opportunities to collaborate and grow. See you at the Museum of Contemporary Art Atchugarry (MACA) on January 13th!

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