As 2026 kicked off, artificial intelligence news continued to make waves, especially in the Chinese market. China’s AI boom shows no signs of slowing down, with multiple initial public offerings (IPOs) from prominent AI firms like Moonshot AI, Z.ai, MiniMax, Biren, and Baidu’s AI chip subsidiary Kunlunxin. The rush to go public is a testament to the growing confidence in China’s AI industry.
## Beyond Automation: Physical AI Powers Smart Machines
Kyt Dotson’s feature on physical AI highlights its potential to power not only robots but also a wide array of smart machines in the coming years. This is the next step beyond large language models, as physical AI brings a new level of interactivity and versatility to the table. With physical AI, the possibilities are endless, from smart homes to industrial automation.
Meta Platforms is also re-establishing its presence in the AI market with the acquisition of AI agent startup Manus. This move aims to bolster Meta’s agentic AI capabilities, which are likely to be a crucial factor in enterprise AI adoption. After all, enterprise AI holds significant commercial potential, making it a prime target for companies looking to capitalize on the trend.
## Meta’s Play for Enterprise AI
Meta’s acquisition of Manus marks a strategic move to regain its foothold in the AI market. The company’s agentic AI capabilities will be critical in its quest to participate in the lucrative enterprise AI space. With the rise of physical AI and the increasing demand for AI-driven solutions, Meta’s efforts to re-enter the market are likely to pay off.
The Chinese market remains a hub of activity, with multiple AI firms going public and investing heavily in research and development. The country’s ambitions to become a leader in AI are gaining momentum, and its progress is hard to ignore. As the global AI landscape continues to evolve, it will be interesting to see how China’s initiatives shape the industry’s future.
China’s chipmaking progress has also accelerated, with SMIC acquiring its subsidiary for $5.8 billion. SoftBank is set to acquire AI infrastructure investor DigitalBridge for $4 billion, while Nvidia finalized its $5 billion purchase of Intel shares. Biren, a Chinese graphics card maker, raised $717 million in its IPO, and Verisk scrapped its $2.35 billion acquisition of roofing software maker AccuLynx.
In other news, Elon Musk revealed plans to expand xAI’s ‘Colossus’ data center to 2 gigawatts. Nvidia asked TSMC to expand H200 production amid strong demand in China, and Google is planning an update that will allow users to change their embarrassing old email addresses. Samsung and SK Hynix received US approval to ship American chipmaking gear to China, and the country imposed the ‘50% rule’ on local chipmakers to target semiconductor self-sufficiency.
In security news, a breach at Ubisoft led to the temporary shutdown of ‘Rainbow Six Siege.’ Millions of Wired user records were leaked in a claimed Condé Nast breach, and the European Space Agency is investigating a breach after a hacker claimed to have stolen 200GB of data. US and Australian agencies warned of the MongoBleed vulnerability in MongoDB, and a new Shai Hulud 3.0 malware variant raised fresh supply chain security concerns.
Former US cybersecurity professionals pleaded guilty to BlackCat/ALPHV attacks, and Uber is reportedly seeking to acquire parking startup SpotHero. Mirae Asset announced plans to acquire Korean crypto exchange Korbit, and China pushed robot access mainstream with Qingtianzhu’s 1 RMB ‘flash rental’ service.
Finally, Reuters’ investigation claimed that Meta tried to deceive regulators over fake ads, and former IBM CEO Louis Gerstner passed away at the age of 83. As we look ahead to CES 2026, it will be interesting to see how the latest developments in AI and emerging tech shape the industry’s future.
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