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Welcome

Welcome to today's edition of AI Business Weekly. From Nvidia shattering records as the first company to reach a $5 trillion valuation to Character.AI's controversial decision to ban users under 18, today's stories reveal both AI's unstoppable momentum and its growing pains. Amazon opens an $11 billion data center in rural Indiana while rivals are still breaking ground, security startup Polygraf raises $9.5 million to combat AI risks, and CustoMED secures $6 million to revolutionize orthopedic surgery with AI-powered 3D printing. As valuations soar and infrastructure expands, questions about safety and responsible deployment grow louder. Let's dive in.

Nvidia Becomes First Company to Reach $5 Trillion Valuation, Fueled by AI Boom

Nvidia has achieved a historic milestone as the first company to surpass the $5 trillion market value mark, cementing its position at the center of the artificial intelligence revolution. The tech giant has transformed from a niche video game processor manufacturer into an integral player powering the AI boom, with its chips becoming essential infrastructure for training and running advanced AI models. The dizzying AI-fueled market rally has prompted some analysts to raise concerns about a potential bubble, though Nvidia's dominance in AI computing hardware remains undisputed. The valuation milestone reflects investor confidence that AI demand will continue driving unprecedented growth across the technology sector. Read more

Nvidia CEO Jensen Huang gestures as U.S. President Donald Trump (not pictured) delivers remarks during the “Winning the AI Race” Summit in Washington D.C., U.S., July 23, 2025.

Character.AI to Ban Users Under 18 from Talking to Its Chatbots

Character.AI announced it will ban users under 18 from interacting with its chatbot platform, following mounting concerns about AI's impact on young people and a high-profile lawsuit over a 14-year-old's suicide. The company cited feedback from regulators, safety experts, and parents as driving factors behind the decision to implement the age restriction. The move represents one of the most significant policy shifts in the consumer AI space and could set a precedent for how other conversational AI platforms approach child safety. Character.AI's decision underscores the intensifying scrutiny of AI companies regarding their responsibility to protect vulnerable users from potential psychological harm. Read more

Amazon Opens $11 Billion AI Data Center in Rural Indiana as Rivals Race to Break Ground

Amazon has opened a massive $11 billion data center on 1,200 acres of land in rural Indiana, dedicated specifically to training and running AI models from Anthropic. The facility is already up and operational, giving Amazon a significant head start while most AI rivals are still in the planning stages for their data center projects. Matt Garman, CEO of Amazon Web Services, described the rapid development as "Cornfields to data centers, almost overnight," highlighting the speed at which AI infrastructure is being deployed. The operational status of Amazon's facility contrasts sharply with competitors' announcements of future data centers, positioning AWS as the infrastructure leader in the AI race. Read more

AI Security Firm Polygraf Raises $9.5 Million in Seed Funding

Polygraf, an AI security startup, has raised $9.5 million in Seed funding led by Allegis Capital, with participation from Alumni Ventures, DataPower VC, Domino Ventures, and others. The company has developed proprietary small language model (SLM) technology designed to help organizations detect and mitigate AI risks across their operations. Polygraf's platform aims to facilitate safe AI adoption by preventing the leakage of personal and proprietary information, detecting AI-generated or manipulated content, and helping organizations maintain compliance with GDPR, HIPAA, and other regulations. The funding will be used to enhance the product and accelerate go-to-market efforts as enterprises face mounting pressure to deploy AI systems responsibly while managing security and compliance risks. Read more

CustoMED Announces $6M Funding to Scale AI-Powered 3D Printed Solutions for Orthopedic Surgery

Israel-based CustoMED has announced the successful completion of its seed round, bringing total funding to $6 million for its AI-driven, surgeon-first platform for patient-specific orthopedic solutions. The round includes investment from Longevity Venture Partners, Varana Capital, Flag Capital, the Israel Innovation Authority, a leading orthopedic implant company, and Avishai Abrahami, Co-founder and CEO of Wix. CustoMED combines artificial intelligence with 3D printing technology to create customized orthopedic implants and surgical guides tailored to individual patients' anatomy. The funding will enable the company to scale production and expand its AI-powered platform as personalized medicine continues gaining traction in surgical specialties. Read more

📢 Milestones and Growing Pains

Today's edition captures AI at an inflection point: Nvidia's historic $5 trillion valuation and Amazon's operational $11 billion data center demonstrate unstoppable momentum, while Character.AI's under-18 ban and Polygraf's $9.5 million security raise reveal the urgent need for guardrails. As CustoMED brings AI to personalized surgery, the industry faces a critical balancing act—pursuing breakthrough applications while addressing safety, security, and ethical concerns that can no longer be ignored. The infrastructure race continues, but so does the reckoning with AI's responsibilities.