January 29, 2026

Model behavior

Hi there,

Here is this week's Hot or Not.

Hot: Physical AI models

The robotics sector raised a record $40.7B in 2025.

Physical AI is driving this progress, enabling robots to operate in the physical world and learn from data rather than pre-programmed rules.

Unlike language models trained on text, the physical AI models that power these systems require real-world robot data, creating an early window for market control.

Check out our physical AI models market map to learn more.

Not: SEO

Generative AI platforms are hijacking e-commerce traffic. 

For example, Adobe reports that generative AI-driven retail site visits surged 1,151% between October 2024 and December 2025.

As brands pivot from traditional search to optimize for AI discovery, generative engine optimization (GEO) platforms are emerging to meet demand.

Explore the full trend in our Tech Trends 2026 report. 

Hot: Predictions markets

Predictions markets emerged as one of the fastest-growing fintech niches in 2025. 

Polymarket and Kalshi, which both became unicorns in June 2025, raised significant equity rounds less than a month apart in Q4.

And fintech incumbents are taking notice: 

• Robinhood announced plans to develop its own prediction market in November
• Crypto.com partnered with Kalshi to launch a national prediction market alliance in December. 

Get the full breakdown in our State of Fintech 2025 report.

Not: Small healthcare deals

Digital health deals fell for the 4th consecutive year in 2025.

However, funding grew 19% YoY to $22.3B, continuing its recovery for the second straight year.

Mega-rounds ($100M+ deals) explain the trend.

Last year, the space’s top deals spanned a few key categories: 

• Wearables (Oura’s $900M Series E)
• Brain-computer interfaces (Neuralink’s $650M Series E)
• Drug discovery (Isomorphic Labs’ $600M Series A)
• Preventative health (Function Health’s $298M Series B, Neko Health’s $260M Series B)

Learn more about the top healthcare deals in our State of Digital Health 2025 report. 

The +1

ABCs…easy as 1, 2, 3? What are these colors? 

I love you.

Anand

@asanwal 

Co-Founder & Exec Chair

P.S. Want to get a full breakdown of 70+ physical AI models? Download our Book of Scouting Reports here.

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