Summary: AI startup Hugging Face has secured $235 million in a Series D funding round, led by participation from major companies such as Google, Amazon, Nvidia, Intel, AMD, Qualcomm, IBM, Salesforce, and Sound Ventures. The funding values Hugging Face at $4.5 billion, reflecting the growing demand for AI and supporting platforms.

Hugging Face offers a range of data science hosting and development tools, and its paid functionality includes features like automating AI model training and speeding up data processing. The company plans to focus on research, enterprise, and startup support with its new funding.

Shares of Better.com, a digital mortgage company, have drastically declined following its long-awaited SPAC merger and public debut. The company’s decision to go public in 2021 at a $7.7 billion valuation seemed promising at the time, with a profitable year and low mortgage interest rates. However, as the housing market slowed and the company faced financial challenges and negative publicity, it began laying off employees and experiencing significant losses. Despite these setbacks, Better.com persisted with its SPAC plans and completed the merger, but its share value has plummeted more than 90% in a single day.

This decline is not uncommon in the world of SPAC deals. The company’s CEO has expressed optimism for the future, citing a turnaround in the housing market and the potential of Better.com’s technology. With its newfound capital, Better.com will now operate as a public company, facing regular earnings reports and the opportunity to raise more capital through stock sales. Despite this, investor confidence appears low.

Nvidia’s second-quarter earnings far exceeded expectations, reaffirming the lucrative potential in selling AI hardware for generative applications. The company’s A100 and H100 AI chips have become integral to building and running AI programs like OpenAI’s ChatGPT, leading to a surge in demand. Cloud service providers and enterprise IT system providers are increasingly adopting Nvidia hardware, further fueling the transition towards generative AI.

While the gaming unit remains a significant revenue driver, Nvidia’s data center business has taken the forefront, generating a staggering $10.32 billion in revenue. Nvidia’s strategic decisions to embrace AI-powered image processing, such as ray tracing, have paid off handsomely. The company projects further growth and foresees revenue of $16 billion for the upcoming quarter. Accelerated computing is praised as a cost-effective and high-performing method, further motivating the industry to shift towards this new computing era powered by generative AI.

Digital mortgage lender Better, backed by SoftBank, announced its plans to go public on the Nasdaq stock exchange via a merger with a blank-check company. After a tumultuous two years marked by regulatory scrutiny and declining mortgage demand, the listing will test market appetite for home lenders amidst U.S. Federal Reserve rate hikes. The merger will provide Better with $550 million from SoftBank, which will be used to expand mortgage product offerings in anticipation of increased demand for refinancings next year. The company plans to go public as U.S. mortgage rates continue to rise, contributing to weakened home builder confidence in August.

Alphabet’s Google, Meta Platforms, Microsoft, Twitter, TikTok, and other tech giants should adhere to EU online content rules in order to rebuild trust and ensure safety on their platforms, according to EU industry chief Thierry Breton. The Digital Services Act (DSA) requires these companies to implement risk management, undergo external auditing, share data with authorities, and adopt a code of conduct. Companies such as Booking.com, Pinterest, Snapchat, Wikipedia, Zalando, and AliExpress, which have over 45 million users, face more stringent obligations. These platforms must submit their first annual risk assessment to the European Commission by Friday.

Breton emphasized that compliance with the DSA is an opportunity for platforms to strengthen their reputation. Child protection and combatting disinformation, including pro-Russian propaganda, will be priorities in enforcing the rules. The DSA also mandates greater transparency regarding algorithmic processes, bots, targeted advertising, and addressing the presence of illegal or unsafe products. Breton warned that he will not hesitate to impose fines of up to 6% of a company’s global turnover for violations and vows to thoroughly enforce the DSA.

Analog Devices (ADI) has forecasted lower-than-expected fourth-quarter revenue, but the company is working on managing the supply glut in order to accelerate growth in future quarters. While ADI’s shares initially fell over 6%, they later rose by about 1%. The chipmaker also missed third-quarter revenue and profit estimates, along with peers Texas Instruments, ON Semiconductor, and NXP Semiconductors. The semiconductor industry is currently grappling with excess inventory due to weak consumer demand and challenging macroeconomic conditions.

ADI plans to ship below end-market demand in the fourth quarter, aiming to normalize customer inventory and enable a quicker return to growth in the coming quarters. Despite a challenging quarter, ADI remains optimistic about the rebound of its consumer segment. The company’s fourth-quarter revenue projection of $2.70 billion falls short of analysts’ average estimate of $3.01 billion. ADI’s adjusted earnings for the same quarter are also expected to be below analysts’ expectations. Ultimately, the company is strategically working to shorten lead times, reduce backlog, and improve overall performance.

Germany aims to increase its public funding for artificial intelligence (AI) research to almost one billion euros in the next two years, in an effort to bridge the skills gap with industry leaders China and the United States. This funding target, announced by research minister Bettina Stark-Watzinger, falls short compared to the $3.3 billion spent by the US government on AI research in 2022. To bolster its AI capabilities, Germany plans to establish 150 new university labs, expand data centers, and make complex public datasets accessible. Private AI spending in the US is significantly higher, reaching $47.4 billion in 2022, while Europe totaled half that amount, and China spent $13.4 billion, according to a Stanford University report. Germany aims to attract AI players through its emerging regulatory framework that prioritizes privacy and personal safety, as well as cooperation within the European Union. The country’s AI startup numbers have increased, but Germany still sits in ninth place globally.

In-space manufacturing, utilizing the unique environment of space, is emerging as a promising market. With higher radiation levels, microgravity, and a near vacuumless state, companies are exploring new manufacturing methods and materials that are not feasible on Earth.

Startups like Varda Space Industries and Space Forge are capitalizing on the potential of protein crystallization to enhance drug development and advanced semiconductor manufacturing. These companies aim to leverage in-space manufacturing to create high-quality crystals and then replicate the growth process on Earth, offering significant improvements in various industries.

Key members of Google’s old guard, including executives like Ruth Porat, Susan Wojcicki, and Urs Hölzle, are shifting roles or leaving the company as it searches for a new identity. Wojcicki, the CEO of YouTube, announced her departure after nine years, while Porat, the CFO of Alphabet, is stepping down to take on a new role as president and chief investment officer. The company is also facing challenges in the AI space and experiencing a shift in employee perception due to increased bureaucracy. Critics argue that Google needs to recreate its early days to sustain growth and deliver revenue.