Building quantum-resilient communication; Startup ecosystem sees steady rise in VC inflow

Hello,

AI company Anthropic said it will “disable” its most advanced AI models for all users  after the US government told it to suspend access for foreign nationals. The development comes amid security concerns over the use of its tools, Fable 5 and Mythos 5.

The US government hasn’t given specific reasons for its directive to the company, The Guardian reports. Anthropic’s relationship with the Trump administration soured earlier this year after it refused to allow the US military to use its AI models for domestic surveillance and fully autonomous weapons systems.

Moving on, technology is playing a major role in the 2026 World Cup, with Brazil using smart vests to track player data. This year, sports scientists are tracking players using wearable technology to obtain data regarding sprint speeds and heart rates as well as fatigue levels and injury recovery. The data, according to an article in BBC Future, is used for career-defining decisions. 

The pressure is high for Brazil this year as it looks to end its 24-year wait for World Cup glory.

Did you know that with five titles, Brazil has won the men's World Cup more times than any other nation?

In today’s newsletter, we will talk about 

• Building quantum-resilient communication
• Startup ecosystem sees steady rise in VC inflow

Here’s your trivia for today: What event is the subject of John Reed's book "Ten Days That Shook the World"?

Startup

Building quantum-resilient communication

Bengaluru-based Pramatra Space is working on a problem that feels straight out of the future, but is quickly becoming urgent: securing digital systems in a world where quantum computers could one day break today’s encryption.

The startup has developed an in-house photonics chip that generates encryption keys using the physics of quantum entanglement, with the aim of making enterprises quantum-resilient.

Key takeaways 

• Founder and CEO Richa Hukumchand, formerly a scientist with DRDO and CIO at spacetech startup Pixxel, says the shift into quantum security came from working closely with sensitive satellite data. 
• Pramatra Space is targeting what the industry calls “Q Day”, the point at which quantum computers may break current encryption systems, making today’s digital security obsolete.
• Pramatra Space has raised an undisclosed pre-seed round led by Seafund Ventures. It is preparing for a seed round in the coming months. 

Venture capital 

Startup ecosystem sees steady rise in VC inflow

Venture capital funding into Indian startups has moved into a steady upward zone. For three weeks in a row, the inflow of funding has increased, providing a certain level of confidence to the ecosystem.

Key takeaways:

• Total funding for the week was $246 million from 25 deals. In contrast, the previous week saw an inflow of $181 million.
• This comes as a welcome relief for the Indian startup ecosystem as the previous month saw VC funding dropping to the lowest level for the year till now on a weekly basis.
• During this week, there were reasonably sized deals cutting across the segments of renewable energy, AI and deeptech.

News & updates

• Security: China is “strongly dissatisfied” with a US move to add several large Chinese companies to the Pentagon’s list of firms it says are aiding China’s military, the commerce ministry said on Saturday.
• AI transformation: Meta CEO Mark Zuckerberg has told employees that the social media giant has made mistakes in ​its AI transformation of its workforce, Reuters reported, citing a memo.

What event is the subject of John Reed's book "Ten Days That Shook the World"?

Answer: The Russian Revolution

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