Silicon Valley VCs Bet Big on AI Amidst Economic Turbulence

Silicon Valley venture capital firms are doubling down on AI amid economic headwinds, with massive deals and shifts toward robotics and autonomous tech signaling resilience. Benchmark's early $75 million investment in Chinese-founded Manus, valued at $500 million then, paid off huge as Meta snapped it up for $2-3 billion on December 29, per Reuters and Silicon Republic reports. This acquisition highlights VC bets on general AI agents that handle tasks like market research and coding, now fueling Meta's push to billions of users.

Bubble fears linger after Oracle's $10 billion data center backer pulled out, tanking shares, as noted by The Daily Upside and Financial Times. Yet Magnificent 7 giants like Microsoft and Google plan over $500 billion in AI hyperscaling for 2026, despite construction labor shortages needing half a million workers and McKinsey's $6.7 trillion global data center forecast by 2030. ABB's CEO told Reuters constraints on builders won't derail the buildout.

Humanoid robots stole the show at this week's Silicon Valley Humanoids Summit, organized by ALM Ventures' Modar Alaoui, drawing 2,000 attendees. Once dismissed as capital-intensive duds, they're hot thanks to AI advances, with McKinsey counting 50 firms raising $100 million-plus, led by China's 20 versus North America's 15. Unitree dominated demos, but US skeptics like iRobot co-founder Rodney Brooks warn dexterity hurdles remain. Agility Robotics just deployed bird-legged Digit bots for Mercado Libre warehouses.

Beyond AI, Kodiak AI partnered with Bosch at CES 2026 to scale self-driving trucks, building on driverless Permian Basin deliveries since January 2025, per TechCrunch. Lux Capital's Josh Wolfe sparked buzz on X about investing in a "free Iran," drawing nods from Google vet Jeff Huber and Maniv Mobility's Michael Granoff, eyeing deep-tech like AI and biotech post-regime change, as Iran International detailed amid Tehran protests.

Funding stats show AI driving early-stage deals despite liquidity woes, per PitchBook's 2026 Outlook. Firms respond to challenges by leaning into US productivity booms from rapid AI adoption, economists say via European Business Magazine, while eyeing climate tech via energy transitions and diversity through diaspora talent pools.

These trends point to a VC future laser-focused on AI embodiment in robots and autonomy, outpacing rivals despite regs and geopolitics. Silicon Valley's edge sharpens as capital chases scalable breakthroughs.

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