AI Weekly: Investors nervous about ‘AI bubble’, xAI co-founders quit

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Wed, February 11, 2026 at 8:02 PM GMT+9

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STORY: From jittery Amazon investors to yet more co-founders quitting xAI, this is AI Weekly.:: AI WeeklyAmazon investors were jittery about a so-called ‘AI bubble’.Shares plunged as much as 11% after it projected a surge of more than 50% in capital expenditures.The e-commerce giant plans to pump $200 billion into its AI efforts this year.But that has some market watchers worried about returns on the investment. Sources have told Reuters ByteDance is developing an AI chip.And they said the Chinese firm is in talks with Samsung to make it.The TikTok parent wants to secure a supply of advanced processors.One source said Bytedance plans to produce at least 100,000 units of the chip this year, and it will be designed for AI inference tasks.xAI co-founders Tony Wu and Jimmy Ba have resigned.They didn’t say why they’re leaving, but it leaves Elon Musk’s firm with just half of its 12 co-founders.Wu and Ba started the company with the billionaire Tesla and SpaceX CEO less than three years ago.The Financial Times reported Ba resigned due to tensions within its technical team over demands to improve its AI model performance.A Silicon Valley giant once again found itself in hot water with the European Union.EU regulators threatened Meta with temporary restrictions to stop it blocking AI rivals from its WhatsApp messaging service.It would come while they investigate suspected abuse of a dominant position by the U.S. tech giant.Meta said there was no reason for the EU to intervene.And robotics company RobCo has raised $100 million from major backers like Volkswagen and Exor.The German firm is working to advance so-called “physical AI” technology and wants to expand in the U.S.Roman Hoelzl is the company’s co-founder and CEO.“Yeah, physical AI, to us at RobCo, is the application of AI in the physical world… that means in the manufacturing environment, in the industry, in production environments."RobCo specializes in modular systems aimed at industrial automation tasks like pallet stacking and component engraving.

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