Whalesbook
AI Enters Production Phase
The transition to large-scale AI deployment in 2026 is now critically dependent on overcoming significant practical hurdles. Industry leaders convened at the World Economic Forum in Davos highlighted energy availability as a paramount concern. Jeetu Patel, President and Chief Product Officer at Cisco, stated that after years of experimentation, AI is entering a mature phase, with 2026 marking the year for agentic AI and early forms of physical AI to move into production.
Power: The Next Bottleneck
Varun Sivaram, Founder and CEO of Emerald AI, warned that energy shortages are poised to significantly impede AI ambitions in major economies like the US and India by 2026. While data center capacity planning is underway, the ability to connect these facilities to existing power grids is severely limited. Emerald AI is developing solutions to enhance data center power flexibility, enabling them to adjust consumption in real-time. This innovation aims to allow faster grid connection and better utilization of available energy, preventing strain on local communities.
Enterprise Readiness and Security
Beyond infrastructure, the complexity of global operations is driving demand for AI as a decision-making tool. Chakri Gottemukkala, Co-Founder and CEO of o9 Solutions, noted that while large language models have gained traction, their impact on enterprise decision-making remains limited. The future, he suggests, lies in neuro-symbolic AI, combining LLMs with structured enterprise knowledge to empower frontline teams. Concurrently, securing AI systems themselves is becoming a top priority. Jonathan Zanger, CTO of Check Point Software, observed that many AI solutions were not designed with security in mind, creating vulnerabilities. Boards and CEOs are now substantially increasing budgets for AI security to ensure safe adoption.