Deep Tech Briefing #40: ๐ค AI Czar; ๐ก๏ธ NATO Investments in Photonic Glass Chips; ๐ Fast-Track Drug Approval; ๐ง Anthropic New Protocol; ๐ eVTOL Up and Down; ๐ฐ MedTech IPO, and more...
An insiderโs update on Deep Tech Ventures: Your dose of tech innovations, startups, exponential industries, policies, and market moves to stay ahead and capitalize on it.
Welcome to issue #40 of Deep Tech Briefing, our Sunday column where we break down the week's standout developments in Deep Tech Startups and Venture Capital.
Here, youโll gain unique insights to keep you ahead, competitive, and ready to seize new opportunitiesโand, why not, spark fresh ideas for thought-provoking conversations. :)
This Weekโs Main Topics
Trumpโs proposed โAI czarโ could reshape U.S. tech policy.
Germanyโs โฌ30 billion startup plan aims to close funding gaps.
The eVTOL sector faces turmoil with Verticalโs rescue and Liliumโs collapse.
Anthropic promotes AI standards.
Space tech advances with methane-monitoring satellites and Starlink services.
Cradle leads protein AI innovation; CeriBellโs IPO signals a MedTech revival.
Energy innovations face scaling challenges in batteries and fusion technologies.
Quantum computing edges closer to commercialization amid global competition.
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From Washington to Berlin: Power, Politics, and Policy Play the Tech Game of Thrones...
You have to hand it to Donald Trumpโhe knows how to keep the spotlight. With whispers of his administration mulling over an โAI czarโ appointment, the former president, fresh off a sweeping electoral victory, seems poised to make artificial intelligence a top-tier issue in Washington. Axios broke the news earlier this week, and while the role remains undefined and unstaffed, itโs already setting tongues wagging.
An โAI czarโ would oversee federal policy and regulation on AI, consolidating authority in a single figure who wouldnโt require Senate confirmation. This alone makes the position a potential lightning rod for controversy. Trump could scrap Biden-era agency AI officers in favor of a top-down modelโa move that might streamline decision-making but risks losing the expertise embedded within specialized agencies. Axios also floated the possibility of combining the role with a โcrypto czar,โ signaling that emerging technologies could take center stage in Trumpโs second term.
Hereโs where it gets interesting: Elon Musk and Vivek Ramaswamyโkey players in the so-called DOGE coalitionโare rumored to have a hand in selecting candidates for the post. Musk, fresh from a Senate AI forum and already deeply involved in shaping AI norms, could extend his influence into policymaking. While some see this as a win for tech industry alignment, others are wary of the potential for conflicts of interest.
Meanwhile, across the Atlantic, Germany is working on its own innovation agenda. Berlinโs cabinet just approved the Second Financing for the Future Act, a bold attempt to bridge the countryโs โฌ30 billion annual startup funding gap and stem the flow of talent and companies to the U.S. The legislation proposes tax incentives and reduced red tape to make Germany a more attractive startup hub. However, with a divided parliament and elections looming, its fate is far from certain. Christoph Stresing of the German Startup Association summed it up bluntly: the number of listed companies in Germany has halved since 2007. For investors, the question is whether Germany can finally shed its risk-averse culture and embrace a new era of entrepreneurship.
Back in the U.S., healthcare policy under Trumpโs new administration is set for a shake-up. The FDA could return to the fast-tracked drug approval processes seen during his first term, a boon for biotech and medtech startups. But thereโs a catch: Robert F. Kennedy Jr., a vocal vaccine skeptic, is reportedly being considered for a health role in the administration. His potential influence on vaccine policy could unsettle investors, even as other sectors look poised to benefit from regulatory loosening.
And then thereโs China. The Biden administration is doubling down on restricting Beijingโs access to critical semiconductor technologies, with new controls targeting high-bandwidth memory (HBM) chipsโa linchpin for training advanced AI models. The move is designed to curb Beijingโs technological ambitions but could disrupt global supply chains and accelerate the development of alternative ecosystems. It raises broader questions about how innovation will evolve in an increasingly fragmented geopolitical context, where access to critical technologies is reshaped by national security concerns.
These developments underscore how policy decisions are increasingly shaping the future of innovation and investment.
The interplay of regulation, market dynamics, and global competition highlights the nuanced challenges and opportunities that define this moment. Whether itโs the centralization of AI governance in the U.S., Germanyโs ambitious startup reforms, or the tightening screws on Chinaโs tech ambitions, the landscape for investors, innovators, and founders is shifting. Itโs a reminder that, in this game, staying ahead requires not just capital but a keen understanding of the forces shaping the future.
The AI Wild West: Billion-Dollar Bets, Protocols, Scaling, and Competitive Dynamics
The AI industry never fails to deliver a mix of bold moves and looming challenges, and this week was no exception. From Anthropicโs push for open standards to CoreWeaveโs ambitious IPO plans and the growing pains of startups navigating private and public markets, the sector continues to showcase its signature blend of innovation and volatility.
Letโs start with Anthropic. The companyโs Model Context Protocol (MCP) is its latest attempt to tackle one of AIโs thorniest problems: integrating systems seamlessly with external data. Itโs a big swing. MCP promises to standardize how AI models interact with tools like Google Drive or Slack, and early adopters like Block and Apollo are already onboard. Sounds great, right? But hereโs the twist: MCPโs success depends on the industry rallying behind an open standardโsomething that rivals like OpenAI arenโt exactly incentivized to do. OpenAI is doubling down on its own proprietary integrations, making MCPโs adoption look like an uphill battle. If MCP doesnโt prove its worth with performance metrics and broad adoption, it risks becoming just another unrealized vision in the fragmented world of AI protocols.
Then thereโs CoreWeave, aiming for a jaw-dropping $35 billion valuation with its upcoming IPO. This AI infrastructure company, backed by Nvidia, is riding the wave of demand for high-performance computing. Itโs carving out a crucial niche, but letโs not ignore the elephant in the room: