Baidu's AI chip unit Kunlunxin files for Hong Kong IPO

Baidu announced that its AI chip unit Kunlunxin has confidentially filed for a Hong Kong listing, following a fundraising round that valued the company at approximately $3 billion.

The proposed spin-off aims to showcase Kunlunxin's value as an independent entity and broaden financing channels, though the company is expected to remain a subsidiary of Baidu after completion.

The filing comes amid a wave of Chinese AI chip IPOs, including Shanghai Biren Technology, which raised $717 million and began trading January 2, as Beijing pushes to develop domestic semiconductor alternatives amid U.S. export restrictions.

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SpaceX to lower 4,400 Starlink satellites to boost safety

SpaceX will lower approximately 4,400 Starlink satellites from 550 kilometers to 480 kilometers altitude throughout 2026, according to Michael Nicolls, the company's vice president of Starlink engineering, in a move coordinated with other operators, regulators, and U.S. Space Command.

The orbital adjustment will reduce ballistic decay time by over 80% during solar minimum—shortening the period from more than four years to just months—and decrease collision risks since debris objects and planned constellations are significantly lower below 500 kilometers.

The announcement follows a December incident when a Starlink satellite experienced a propulsion tank failure that created debris and caused it to fall four kilometers in altitude, highlighting the need for faster deorbiting of malfunctioning spacecraft.

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OpenAI consolidates teams to overhaul audio AI models

OpenAI has unified multiple engineering, product, and research teams over the past two months to overhaul its audio models ahead of an audio-first personal device expected to launch in about a year.

The company's new audio model, slated for early 2026, will reportedly sound more natural, handle interruptions like an actual conversation partner, and even speak while users are talking—capabilities current models lack.

The hardware push follows OpenAI's $6.5 billion acquisition in May of io, the startup co-founded by former Apple design chief Jony Ive, who has prioritized reducing device addiction through audio-first design.

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Global chip sales projected to hit $1 trillion in 2026

The global semiconductor industry is projected to reach approximately $1 trillion in 2026, nearly five years ahead of earlier forecasts, with Bank of America analyst Vivek Arya predicting 30% growth while the World Semiconductor Trade Statistics forecasts $975.5 billion in sales.

The surge is driven by an "AI supercycle" with Nvidia commanding 80% of the AI accelerator market through chips priced at $30,000-$40,000 per unit, while tech giants commit over $400 billion in data center infrastructure spending.

Logic and memory segments are expected to grow over 30% year-over-year, with high-bandwidth memory makers like Micron Technology
reporting sold-out capacity through 2026, though the industry faces power constraints and component shortages.

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DeepSeek unveils architecture to cut AI training costs

DeepSeek released a research paper on Thursday introducing Manifold-Constrained Hyper-Connections (mHC), a novel architecture designed to improve training stability and scalability for large AI models while minimizing computational costs, with CEO Liang Wenfeng listed as co-author.

The mHC framework builds on ByteDance's 2024 hyper-connection architecture by adding a manifold constraint to restore identity mapping properties and reduce memory overhead, with testing on models up to 27 billion parameters showing stable performance without added computational cost.

Industry observers expect DeepSeek to launch a new model before Spring Festival in mid-February 2026, as Liang's personal publication of major technical papers has historically signaled upcoming product releases, including last year's R1 model.

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OpenAI developing AI-powered pen for 2026 launch, leak claims

OpenAI is developing an AI-powered pen-style device codenamed "Gumdrop" in collaboration with former Apple designer Jony Ive, with the gadget expected to transcribe handwritten notes to ChatGPT and enable voice communication, according to industry tipster Smart Pikachu.

The device will be manufactured by Foxconn in Vietnam after a dispute over manufacturing location ended OpenAI's initial partnership with Chinese manufacturer Luxshare, with OpenAI reportedly refusing to produce the hardware in China.

OpenAI acquired Ive's hardware startup for approximately $6.4 billion in May 2025, with CEO Sam Altman stating in November 2025 that prototypes are "jaw-droppingly good" and the device should launch within two years, aiming to offer a calmer alternative to smartphones.

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Apple slashes Vision Pro production after disappointing sales

Apple has halted production of its Vision Pro headset and slashed digital advertising spending by over 95% in 2025 after the $3,499 device shipped only 390,000 units globally in 2024, according to International Data Corporation and Sensor Tower.

IDC projects just 45,000 Vision Pro units will ship in Q4 2025, a stark contrast to the millions of iPhones and iPads Apple sells quarterly, with analysts citing high costs, comfort issues, and only 3,000 available apps as key barriers to adoption.

Despite the setback, Apple plans to release a cheaper Vision headset this year while the device has gained limited traction in enterprise applications like pilot training and surgical procedures.

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Tesla Semi achieves 1.2 MW charging in new production design

Tesla released video showing its redesigned Semi truck charging at a record 1.2 megawatts, enabling an estimated 10-80% charge in under 45 minutes for the electric truck's ~850 kWh battery pack.

The breakthrough addresses the trucking industry's primary concern about electric vehicle downtime, allowing the Semi to recover significant range during mandatory 30-minute driver breaks while diesel trucks refuel in 15 minutes.

Tesla is targeting production to begin in the first half of 2026 at its Nevada factory with a planned capacity of up to 50,000 units annually, while deploying 46 Megacharger stations expected by early 2027.

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Neuralink plans high-volume brain interface production by 2026

Elon Musk announced that Neuralink will begin high-volume production of brain-computer interface devices and transition to a streamlined, almost entirely automated surgical procedure in 2026.

As of September 2025, 12 people worldwide have received Neuralink's N1 implant, collectively using their devices for over 15,000 hours to control computers and smartphones with their thoughts.

The company completed two implant surgeries in a single day in July and is expanding clinical trials to Canada, the UK, and the United Arab Emirates as it works toward automating the implant process.

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Meta hid scam ads from regulators instead of stopping them

Meta developed a "global playbook" to manage regulatory pressure over scam ads on Facebook and Instagram, using its Ad Library to make fraudulent content "untraceable" for regulators rather than implementing universal advertiser verification, according to internal documents reviewed by Reuters.

The company declined to spend an estimated $2 billion on universal verification—which could reduce scam ads by up to 29%—because it might cost up to 4.8% of revenue, instead adopting a "reactive only" approach that redirects blocked scam ads from regulated markets to unregulated ones.

The U.S. Virgin Islands filed a lawsuit against Meta on December 30 alleging the company "knowingly and intentionally" exposed users to fraud while profiting from scams, as U.S. senators called for federal investigation and the European Commission questioned Meta's compliance.

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