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Venture capital fundraising in the U.S. fell 35% in 2025 to $66bn, the weakest showing in at least six years, as start-ups remain private longer and capital concentrates in top-tier firms, according to PitchBook. Fundraising is down 70% from 2022’s record high, with large players like Lightspeed and Founders Fund securing billions, while new managers struggle. The trend is driving cash-heavy AI start-ups toward alternative backers like sovereign wealth funds and hedge funds, amid a record $222bn raised for U.S. AI firms last year. Upcoming IPOs from companies including SpaceX and OpenAI could help revive the VC ecosystem.

 

Wall Street Journal

Headline How IT Leaders Are Planning for 2026

What will define successful data center and infrastructure strategies in 2026. This analyst report shares insights from more than 500 IT professionals across the US and Europe, revealing how teams are adapting to rising risk, tighter budgets, and accelerating AI adoption.

Produced by Service Express, the eighth annual Data Center & Infrastructure Report explores where IT leaders are investing, how workloads are being deployed, and how organizations are managing shifts in virtualization, talent, and security.

You’ll see how teams are moving AI from pilot to enterprise value, strengthening defenses against internal and external threats, and making more targeted decisions to optimize IT spend.

Designed for IT, infrastructure, and risk leaders, the report offers a clear view of what peers are prioritizing now to prepare for the year ahead.

Download the report

 

The U.S. trade deficit narrowed to its lowest level since 2009 in October, as President Donald Trump’s tariffs continued to prompt fluctuations in imports. The Commerce Department reported Thursday that the deficit fell 39% from November to $29.4bn. Imports fell 3.2% to $331.4bn, while exports grew 2.6% to $302bn. The deficits with Mexico and China widened, while the shortfall with Canada narrowed. The gap with Taiwan widened, likely reflecting the increases in imports of computers and accessories.

 

Bloomberg

CNBC

Financial Times

New York Times

U.S. labor productivity grew at a 4.9% annualized rate in the third quarter of 2025, the fastest pace in two years, as businesses invested in technology to offset rising costs and worker shortages. According to the Bureau of Labor Statistics, unit labor costs fell 1.9% for a second straight quarter - the first back-to-back decline since 2019 - suggesting wage pressures are not fueling inflation. The productivity rebound comes despite a cooling labor market and coincides with signs of renewed hiring and investment, including advances tied to artificial intelligence and capital spending incentives in President Trump’s One Big Beautiful Bill Act.

 

Bloomberg

Reuters

Hedge funds gained a record $628bn last year according to estimates by data provider HFR, as investors shifted away from private equity, achieving a 12.8% return, their best performance since 2009.

 

Financial Times

President Trump has expressed confidence in the future of artificial intelligence, saying it would produce an abundance of jobs. He also dismissed the notion that the technology could fuel cyberattacks. “Whoever wins the artificial intelligence war is going to be really the leader of the world,” Trump said in an interview with The New York Times.

 

New York Times

Glencore, the Swiss mining and commodity trading giant, is in preliminary merger discussions with British-Australian rival Rio Tinto. The potential all-share merger could create the world's largest mining company, valued at over US$260bn. Both companies confirmed the talks but noted that there is no guarantee of a merger. The "current expectation" is that Rio Tinto would acquire Glencore by a court-sanctioned scheme of arrangement, Glencore said. Rio Tinto has until February 5 to decide on a takeover offer.

 

France 24

U.S. pharmaceutical group Merck is in talks to buy cancer drugmaker Revolution Medicines. A price tag of $28bn to $32bn was being discussed as part of negotiations, a source said.

 

Financial Times

In an industry subject to high financing, regulatory and reputational risks, not everyone is convinced the resurgence of interest in nuclear energy will be sustained, the Financial Times reports. 

 

Financial Times

The U.S. Transportation Department is revising its guidance to reduce civil fines on airlines for violating consumer protection rules. The Office of Aviation Consumer Protection stated that its focus will shift to ensuring compliance with regulations rather than penalizing violations. If issues arise, the department plans to issue warning letters to help airlines comply before pursuing enforcement actions. Additionally, the department aims to eliminate guidance from 2023 that sought higher penalties for violations, which were intended to deter future infractions.

 

US News and World Report

The U.S. Food and Drug Administration (FDA) has announced new guidance to limit its regulation of wearable devices and software aimed at promoting healthy lifestyles. FDA Commissioner Marty Makary said: "We want to let companies know, with very clear guidance, that if their device or software is simply providing information, they can do that without FDA regulation." The guidance classifies low-risk wellness tools, such as fitness apps and activity trackers, as non-medical devices exempt from strict regulation, as long as they do not make medical claims. The move follows a warning issued to WHOOP for its blood-pressure insights feature, which was said to blur the line between wellness and medical devices.

 

U.S. News

Google and Character.AI have reached a mediated settlement regarding lawsuits filed by families claiming AI chatbots harmed minors, including a case linked to the suicide of 14-year-old Sewell Setzer III in 2024. The lawsuits span multiple states, including Florida and Texas, and await final court approval. Megan Garcia, Setzer's mother, alleged that her son became emotionally reliant on a Game of Thrones-themed chatbot. "Parties have agreed to a mediated settlement in principle," the Florida filing stated.

 

Bloomberg Law

Los Angeles Times

U.S. News

The Guardian

Elon Musk's legal challenge against OpenAI, claiming the company deviated from its founding non-profit principles after becoming for-profit, has been approved for trial by a federal judge. Musk alleges that OpenAI misled him about maintaining its non-profit mission, and evidence suggests disputed facts warrant a jury's consideration. The trial is set to take place in March, marking a significant legal confrontation in the evolving AI landscape.

 

Reuters

Nvidia chief executive Jensen Huang, one of the world’s richest individuals, says he is “perfectly fine” with California’s proposed 5% one-time tax on billionaires, which is intended to fund healthcare, education, and food assistance. Despite a potential $7bn bill based on his $155.8bn fortune, Huang affirmed his commitment to Silicon Valley, citing the region’s talent pool. Other tech elite individuals left the state ahead of the January 1st residency deadline. On New Year's Eve, Peter Thiel announced he was opening a Miami office of Thiel Capital as he shifted his residency to Florida. Venture capitalist and current AI czar David Sacks also announced his departure from California for Austin.

 

Accounting Today

The Trump administration has released the 2025-2030 U.S. dietary guidelines, urging Americans to consume more whole foods and protein while reducing highly processed foods and added sugars. Health Secretary Robert F. Kennedy Jr. said: "Our message is clear: Eat real food." The guidelines recommend limiting saturated fat to 10% of daily calories and suggest whole-food sources. They also call for increased protein intake, advising 1.2 to 1.6 grams per kilogram of body weight. The guidelines will impact federal nutrition programs, including the National School Lunch Program, which serves nearly 30m children daily. The guidelines also drop recommendations that Americans restrict alcohol consumption to two beverages a day for men and one for women in favor of simply advising they consume less to be healthier. Nonprofit advocacy groups such as the U.S. Alcohol Policy Alliance and the Center for Science in the Public Interest have said the move would hurt public health and could lead to heavier drinking as consumers define moderation themselves.

 

Chicago Tribune

NPR

Reuters

Wall Street Journal