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Good morning!

Today’s issue spotlights three major AI moves: Capgemini’s blockbuster WNS acquisition to supercharge agentic AI services, Huawei’s denial of copying Alibaba’s Qwen model, and xAI gearing up with a million-GPU power setup. Plus, breakthroughs in wood-recycling AI, email efficiency, and community tools on social media.

1. Capgemini Acquires WNS for $3.3 Billion to Lead in AI-Powered Intelligent Operations

Capgemini is acquiring WNS for $3.3 billion in a move to become a global leader in Agentic AI-driven Intelligent Operations. The deal strengthens Capgemini’s ability to help enterprises automate and transform end-to-end business processes with AI. The acquisition brings together deep sector expertise, digital BPS capabilities, and consulting-led transformation, with expected EPS growth of 7% post-synergies by 2027.

2. Huawei Denies Claims It Copied Alibaba's AI Model

Huawei’s AI research lab has rejected accusations that its new Pangu Pro Moe model copied Alibaba’s Qwen 2.5. The claims came from a paper by a group called HonestAGI, which alleged “extraordinary correlation” between the models and suggested copyright violations. Huawei insists its model was independently developed using its own Ascend chips and includes unique architectural innovations. Alibaba has not yet commented on the situation.

3. AI Wood Recycling Startup Raises $3.75M to Turn Waste into Clean Energy

Woodchuck, a Grand Rapids-based climate tech startup, has secured $3.75 million in seed funding to scale its AI-powered system that turns scrap wood into renewable biomass energy. The company uses AI cameras to sort wood waste at construction sites, then processes it into clean fuel at its new all-electric facility. The funding will enhance its AI tools and help clients track recycling progress more easily.

4. Brex Rewrites Playbook to Keep Up with Fast-Moving AI Tools

Corporate card startup Brex overhauled its software procurement strategy to stay ahead in the AI race. Facing slow approval cycles, the company introduced a faster, flexible framework that lets engineers test and adopt AI tools quickly. Each employee now gets a monthly budget to try approved tools, helping Brex scale what works and drop what doesn’t. CTO James Reggio says the key is to embrace the messiness and move fast.

5. Elon Musk’s xAI Buys Overseas Power Plant to Fuel 1 Million-GPU Data Center

Elon Musk confirmed that xAI is buying a power plant overseas and shipping it to the U.S. to support its next data center, which will host 1 million Nvidia GPUs and require up to 2 gigawatts of power — enough to run nearly 2 million homes. The move highlights the extreme energy demands of large-scale AI and Musk’s urgency to scale xAI’s Grok models by building one of the most powerful AI supercomputers on Earth.

6. Google Hit with EU Antitrust Complaint Over AI Search Summaries

A group of publishers has filed a formal antitrust complaint with the EU, accusing Google of misusing their content in its AI Overviews without proper consent. The complaint claims these summaries harm publishers by cutting traffic and revenue, while offering no way to opt out unless they leave Google entirely. Google defends the feature, saying it boosts discovery and that traffic shifts can happen for many reasons.

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Stay tuned for more updates, and have a fantastic day!

Cheers,
Zephyr