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In focus
- Scott Shuey on the mounting trust issues around AI
- A talking teddy drew global attention to the dilemma of AI toys. So what are toy makers doing about it?
- Was Manus’ shift to Singapore from China an illegal transfer of technology?
Hello reader,
I don’t know about you, but I didn’t ring in the New Year. I was too busy stomping on the flames of 2025, trying to stop them from igniting 2026.
Clearly, that wasn’t enough. We’re now eleven days into the year and it has already descended into an absolute shit show.
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So far, the main business concerns – putting aside what is going on in places like Venezuela, Minnesota, Greenland, and Palestine – is the state of AI and by association, funding in Southeast Asia.
Even a quick glance at our headlines for today will show you that the public’s love affair with AI is petering out.
AI toys have been a lighting rod for criticism following the discovery of a teddy bear that was willing to talk about sex with kids. X’s Grok is being investigated for allegations that it generated sexualized images of women and minors. Google has settled a lawsuit with the mother of a teenager who killed himself following interactions with the chatbot Character.AI.
Even VCs who say they are still committed to early-stage AI developments are broadening their focus to include sectors like robotics.
So let’s get to it. These are our top stories of the week for the first week of 2026. You’ve been warned.
Scott Shuey, senior editor
Editor’s picks
1️⃣ Talking teddy bears highlight the challenges of AI toys
Short cuts
Weekend deep dive
What I’m reading
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