AI That Understands Reality

AI That Understands Reality
Image credit: Nathan Laine/Bloomberg
3-minute read.

In today's newsletter:

  • $1B seed round for AI that understands reality
  • OpenAI buys its own AI bodyguard
  • Apple delays AI device because Siri isn’t smart enough yet
  • Two Meta heavyweights join AI unicorn Nscale

$1B Seed Round for AI That Understands Reality

AI startup AMI Labs has raised about $1 billion in seed funding, one of the largest seed rounds ever.

The company was founded by AI pioneer Yann LeCun, with backing from investors including Bezos Expeditions, Cathay Innovation, Greycroft, and HV Capital.

AMI Labs (Advanced Machine Intelligence Labs) is building world model AI that learns from video and real-world data, not just text.

The goal is to create AI that can understand the physical world and power technologies like robots and autonomous systems.

OpenAI Buys Its Own AI Bodyguard

OpenAI has agreed to buy Promptfoo, a startup that builds tools to test and secure AI systems. The deal was reported on March 9, 2026, though the financial terms were not shared.

Promptfoo helps developers find problems in AI apps before they launch, such as prompt injections, jailbreaks, and other security risks.

OpenAI plans to add Promptfoo’s technology to its enterprise AI platform so companies can safely build and run AI agents.

As more businesses use AI tools that can access data or take actions automatically, security testing has become a major priority for developers and large organizations.

Two Meta Heavyweights Join AI Unicorn Nscale

Nscale has added former Meta Platforms executives Sheryl Sandberg and Nick Clegg to its board.

The AI infrastructure startup announced the move while raising $2 billion in new funding, giving the company a $14.6 billion valuation. Nscale builds data centers and GPU cloud systems used to train and run AI models.

Sandberg previously helped scale Meta’s ad business as COO, while Clegg led global policy and served as the UK’s deputy prime minister.

Their experience could help Nscale expand as demand for AI computing continues to grow.

Disclaimer: This newsletter is for informational purposes only. Details may change or come from third-party sources; always do your own research and consult a qualified professional before making decisions.