This week in deep tech, quantum computing hit prime time as PsiQuantum raised a record $1 billion to build error-corrected, million-qubit hardware, while partnering with Nvidia to turbocharge development.

Mistral AI led Europe’s largest-ever AI funding round at €1.7 billion, and Cognition AI soared to a $10.2 billion valuation. On the regulatory side, California passed a landmark AI bill expected to establish national, possibly global, compliance standards, sending shockwaves through tech headquarters. Meanwhile, China launched anti-dumping investigations into American chip imports, highlighting Nvidia, AMD, and Broadcom as the supply chain battle heats up.

Top Moves This Week

• PsiQuantum Banks $1B for Quantum Milestone
  PsiQuantum’s $1B Series E, led by BlackRock and joined by Nvidia’s NVentures, aims for million-qubit, error-corrected quantum systems on photonic silicon chips, with a post-money valuation at $7B.
• Mistral AI Closes €1.7B Round, Boosts Europe
  French AI builder Mistral raised €1.7B, backed by ASML, giving Europe a bigger seat at the AI infrastructure table.
• Cognition AI Hits $10.2B Valuation
  Cognition snags $400M late-stage to expand its “Devin” AI coding agents, locking in more than double its valuation from earlier in 2025.
• CuspAI Raises $100M for Materials Discovery
  CuspAI, backed by NEA, Temasek, Nvidia NVentures, and Samsung, wins $100M Series A to build an AI-powered materials platform, already drawing partnerships from Hyundai and Meta.
• California Passes Sweeping AI Law
  A new bill passed by California lawmakers establishes broad AI risk and safety standards, putting compliance pressure on every major tech employer in the state.
• China Targets U.S. Chips with New Probes
  China opens anti-dumping investigations into analog ICs and chip imports from the U.S., directly affecting Nvidia, AMD, Broadcom, and escalating trade pressure.
• IBM Quantum Scientists Break “Noise Barrier”
  IBM Quantum researchers demonstrate that certain noise conditions can extend quantum computation cycles, offering a path past the traditional “noise floor”.
• Johns Hopkins Debuts Nano-Scale Chip Process
  A new chemical liquid deposition process enables fabrication of microchips smaller than ever before—invisible to the eye—potentially redefining size and speed limits for years to come.
• Schneider Electric Innovates for Contractors
  Schneider Electric rolls out new automation and grid tech at NECA 2025, with energy efficiency improvements targeting $2B in savings industry-wide.
• FuriosaAI Tackles AI’s Power Bottleneck
  FuriosaAI’s RNGD launches in Korea, targeting cost and energy reduction for large AI models, supporting OpenAI’s Asia expansion.
• Africa Deep Tech Challenge Picks Semifinalists
  Sixteen teams compete in the continent's leading deep tech pitch showcase, building momentum for African R&D ecosystems.
• Robotics Funding Surges Past $6B for 2025
  Crunchbase reports $6B poured into robotics startups in the first seven months, forecasting a record year as automation demand climbs.
• French Tech: VC Down, Jobs Up 11.5%
  French startups see a 24% VC drop, but employment in deep tech jumps 11.5%, signaling resilience despite the funding dip.
• Micron, TSMC Announce New U.S. Investment
  TSMC to invest $100B in new U.S. chip facilities, while Micron’s $100B commitment is cited in federal grant negotiations amid political tension.
• Nvidia Leads Quantum Venture Strategy
  NVentures, Nvidia’s fund, revealed strategic stakes in QuEra, Quantinuum, and PsiQuantum, doubling down on quantum as the “next” compute.
• Open-Source AI Models Strengthen
  DeepCogito v2 and other open models show new logical reasoning milestones, fast becoming credible challengers to closed systems.
• AI-Enhancement Transforms Brain-Computer Interfaces
  UCLA’s wearable, vision-assisted AI co-pilot boosts BCI task speed 4× over non-AI setups, opening new frontiers in non-invasive medical technology.
• AI-Powered Cardiac Imaging Lens Hits Clinics
  Camera/AI systems for coronary risk are piloted via catheter-based diagnostics, delivering real-time blockages detection and early heart attack intervention.
• AI Materials Discovery Accelerates
  CuspAI’s tools slash R&D timelines for new materials—in chemicals, pharma, and clean tech—drawing major industry clients.
• AWS: Australia Maintains AI Growth Rate
  Australian businesses continue rapid adoption pace, with one AI-augmented enterprise added every three minutes.
• Texas Launches AI-Powered Aerial Surveillance
  Law enforcement deploys real-time AI video analysis helicopters, enhancing border oversight while raising privacy concerns.
• California Chip Production Expands
  Intel wins further Secure Enclave grants as California strengthens its fabrication ecosystem, supporting over 69,000 semiconductor jobs.
• China Begins U.S. Semiconductor Sector Probes
  Further investigations announced into U.S. chip companies as trade threats escalate, targeting analog IC supply for local electronics makers.
• MIT: 95% of Enterprise GenAI Pilots Underperform
  A new report finds that most GenAI pilots fail to scale or deliver ROI, urging companies to set sharper KPIs and streamline deployments.
• UCSD AI Reads Medical Images With Fractional Data
  AI tools that mimic human radiologists’ focus patterns are trialed for lung and tumor scans, with dramatically less data needed for robust diagnosis.

Full Insights

1. PsiQuantum: $1B Bet on Million-Qubit Scale Quantum

PsiQuantum secured a record-breaking $1 billion Series E round, pushing its valuation to $7 billion, to build fault-tolerant, million-qubit quantum computers. BlackRock, Temasek, Baillie Gifford, and Nvidia’s NVentures all backed the financing, making PsiQuantum the world’s most well-funded quantum computing company and positioning it to leapfrog current quantum limitations. The capital fuels simultaneous quantum development in Brisbane, Chicago, and a 130,000-square-foot test and assembly site in California.