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Design houses move from outsourced chip design to AI chip architecture

Design house (DSP) companies that once focused on outsourced semiconductor design are expanding in both contract pricing and funding scale as AI chip mass production becomes harder with foundry steps alone after 2-nanometre nodes. With physical limits nearing, 2.5D and 3D stacking and chiplets are becoming key, making advanced packaging and interconnect new battlegrounds. Firms are shifting toward integrated design platforms and infrastructure architecture partnerships, alongside rising high-value project shares and larger financings.

AI & Enterprise

China regulators block Meta\'s acquisition of Manus, order deal termination

Chinese regulators have moved to block Meta\'s acquisition of AI agent startup Manus, with foreign media reporting authorities ordered the deal treated as if it never happened. An organisation under the National Development and Reform Commission said it would ban a foreign company from acquiring the Manus project under relevant laws, without naming Meta or giving reasons. Meta announced the deal in December, and the Wall Street Journal reported it was worth more than $2 billion.

AI & Enterprise

One year after DeepSeek, Chinese AI models spread rapidly, overtake U.S. in download share

Chinese AI companies are expanding developer ecosystems with open-source models, while U.S. firms stick to closed, API-based approaches, MIT Technology Review reported. A turning point was DeepSeek’s R1 reasoning model released in January 2025. Researchers said Chinese open-weight models accounted for 17.1 percent of global AI model downloads in the year to August 2025, edging the U.S. share of 15.86 percent. Adoption is rising in the Global South despite constraints such as censorship and disputes over distillation.