📋 Weekly Summary

The transition into 2026 has been marked by seismic shifts in capital and competition. SoftBank redefined the landscape with a massive $40 billion investment in OpenAI, while Google surged past its rival in user metrics, prompting a “code red” at OpenAI. The industry is bracing for a historic year of IPOs with combined valuations potentially exceeding $1.5 trillion. Meanwhile, CES 2026 signaled the arrival of physical AI, with Boston Dynamics and LG debuting next-gen robotics. DeepSeek continued to challenge Western dominance with efficient architecture, and Agentic AI became the new standard for interoperability.

📋 Quick Takeaways

• DeepSeek publishes “striking breakthrough” mHC paper introducing Manifold-Constrained Hyper-Connections for more efficient AI model training
• OpenAI developing new audio model for Q1 2026 release with natural speech and real-time conversation capabilities
• Baidu’s AI chip unit Kunlunxin files Hong Kong IPO valued at $3 billion amid China’s semiconductor self-sufficiency push
• MCP becomes industry standard as OpenAI, Microsoft, and Google adopt Anthropic’s agentic AI protocol
• Tesla reports Q4 miss, loses #1 EV maker title to BYD after second consecutive year of declining deliveries
• Google tests Nano Banana 2 Flash image generation model as part of Gemini’s fast model lineup
• Microsoft CEO Nadella doubles down on AI strategy across all products and services for 2026

🔬 AI Research Breakthroughs

DeepSeek Publishes “Striking Breakthrough” mHC Architecture Paper

Major Research Development: Chinese AI startup DeepSeek kicked off 2026 with a groundbreaking research paper introducing Manifold-Constrained Hyper-Connections (mHC), a new approach to training AI models that could significantly reduce computational costs while improving scalability.