The expanded features, which include AI summarization and writing tools, come as Google responds to users wanting more personalized AI experiences. 

“We recently surveyed our users and found that 85% of them think that AI in Gmail is most helpful when it leverages their content to generate tailored responses,” Gmail’s Head of Product, VP Blake Barnes, told reporters in a conference call on Wednesday. “They don’t want a generic assistant.” A December poll by Google Workspace and The Harris Poll found that 92% of knowledge workers ages 22-39 want AI with personalization. 

As part of the rollout, an AI Overview tool similar to the one found on Google Search will summarize email threads. Paid users will be able to ask their inboxes and receive an AI Overview. 

Biggest update

The biggest update is to how Gemini will assist users with writing and replying to messages. The “Help Me Write” tool, previously available as a paid service on Gmail, can draft emails from a signal prompt. According to internal company data, 70% of enterprise users who use “Help Me Write” in Google Docs or Gmail took Gemini’s suggestion. 

“AI securely analyzes your past emails. It understands your writing style, the typical greetings you have, the sign-offs, and also what’s going on in your life to generate the suggested response that’s really personalized to you,” Barnes said. Next month, the Help Me Write tool will be updated to include information from users’ other Google apps. 

The existing “Smart Replies” feature, now called “Suggested Replies,” can write responses that better match a user’s tone and style. While both of these features are free to all, the AI-powered proofreading tool that addresses word choice, concision and active voice is only available to Google AI Pro and Ultra subscribers. 

The update will also pilot an AI inbox tab with “trusted testers” that briefs users on their emails and creates to-do lists reminding users about tasks like paying bills or a dentist appointment.

The features will only be available in English and in the US. Google plans to expand to other languages and countries in the coming months. 

Term Sheet readers, generally speaking, are an optimistic bunch. But there’s a lot of concern about whether we’re prepared to meet growing cybersecurity risks, with one reader predicting that even Fortune 500 CEOs will be in the crosshairs as high-stakes breaches materialize. 

AI, of course, is at the center of these escalating cybersecurity risks, and at the changes that are happening in industries like robotics and healthcare. But some industries, like fintech and crypto, have created their own waves of transformation and possibility. 

Without further ado (since you all had quite a lot to say) here’s what Term Sheet readers see ahead across the business landscape. 

Note: Answers have been edited for clarity and brevity.

The cybersecurity stakes hit an all-time high

Cyberwar is no longer a future threat – it’s the present reality, with nation-states like China and Russia pursuing coordinated, long-term strategies that align with their geopolitical goals. —Snehal Antani, CEO and cofounder, Horizon3.ai

Trust becomes an engineering requirement, not a marketing message. Black-box AI will hit a wall in regulated industries. “Mostly correct” is not good enough when wrong answers carry real consequences. —Joel Hron, Thomson Reuters CTO

In 2026, AI browsers will move fully into an ask-and-act model, changing how people interact with the web. This convenience introduces new security risks. —Etay Maor, vice president, threat intelligence, Cato Networks

In 2026, we’ll see the first major enterprise breach caused by an AI agent behaving in unexpected ways. As autonomous systems become more deeply embedded in operations, emergent behavior will create a new class of cyber risk. —Aaron Jacobson, partner, NEA

By the end of 2026, we will see at least three Fortune 500 CEOs lose their roles explicitly due to AI system failures that their organizations cannot explain, reproduce or defend post-incident. Unlike past outages tied to infra or human error, these failures will stem from opaque AI decision paths. —Sameer Agarwal, cofounder and CTO, Deductive AI

Fintech and crypto at a crossroads

In 2026, stablecoins will just be part of your next app update on your phone. The next major app to be powered by stablecoins is one you’re already using. —Itai Turbahn, CEO and cofounder, Dynamic 

Crypto credit cards will bridge the gap between traditional and digital finance in 2026. This transition will position exchanges to be comprehensive financial hubs that could compete with traditional banks and fintechs, rather than just a digital asset platform. —Matthew Goldman, founder, Totavi

Banks will lose more mass affluent customers to fintechs in 2026 than ever before. It used to be that fintechs served the customers Banks didn’t want. The less affluent. The young. Now fintechs have grown up and so have their customers. —Rex Salisbury, founder and general partner, Cambrian

Stablecoins have proven blockchain’s first killer app beyond store of value, regulation is clarifying, and institutions are finally entering the space – setting up 2026 and 2027 as some of the strongest blockchain venture vintages yet. The irony? Most LPs will sit this out, distracted by Bitcoin’s volatility theatrics and the AI gold rush. By the time the noise clears, the best funds will have been raised and committed. —Aaron Miller, head of global venture capital, CF Private Equity 

As C.S. Lewis wrote, “There are far, far better things ahead than any we leave behind.” For financial services, the year ahead will prove it. —Sarah Biller, cofounder, Fintech Sandbox

The future of healthcare and its many offshoots

AI will discover at least one groundbreaking pharmaceutical that will start Phase I clinical trials. —Kanyi Maqubela, managing partner, Kindred Ventures:

The American consumer is more diverse than ever, and we are aging – by 2030 Americans over 65 will outnumber those under 18 for the first time in U.S. history. In 2026 we will see more investor activity into these areas, such as menopause, longevity medicine, elder care, and more.  —Erin Harkless Moore, managing director of investments, Pivotal Ventures

In 2026, rising healthcare costs and continued strain on the nation’s public health infrastructure will act as a powerful catalyst across the industry. Employers, insurers, health systems and providers will all feel the pressure, setting off a ripple effect that is likely to accelerate dealmaking. —Amanda Zablocki, partner, co-leader of national healthcare team, Sheppard Mullin

2026 will be the year AI feels clinically real. With tools like OpenEvidence already adopted by nearly half of U.S. physicians, healthcare is moving faster than software. AI “colleagues” aka digital nurses, doctors, and copilots will eliminate non-clinical work and personalize care at scale. The next healthcare revolution won’t come from hospitals or insurers, it’ll come from AI workflows physicians already trust. —Latif Peracha, general partner, M13

In 2026, the next wave of healthcare transformation will happen at home. As reimbursement pressures mount, providers will increasingly turn to home-based care models that pair automation with intelligent, agentic AI workflows. —Irem Rami, Partner, Norwest

Demographics don’t lie: the caregiver-to-patient ratio will continue collapsing. Leading systems will begin preparing for the 2030 reality by investing in models that extend human touch without requiring more humans. Expect more deliberate reliance on recovery support partners, proactive monitoring, and simplified patient pathways. —Kyle Cooksey, CEO, Deacon Health

The next big consumer-health category isn’t new or exotic. It’s fiber. Gut health is going mainstream, GLP-1s are reshaping eating habits, and 90 percent of adults still don’t get enough daily fiber. The brands that approach fiber with science-forward messaging, innovation, and real consumer education to build daily habits will win this underserved market. —Lisa Wu, partner, Norwest

Defense and robotics

2026 will see the return of the Valley of Death to defense tech as the law of large numbers forces growing companies to seek larger and larger contracts in the context of a slow-growing defense budget. —Peter Wilczynski, CPO, Vantor

Dual‑use deep tech continues its shift from niche to mainstream. For many years, defense was a difficult category for venture capital. That’s changing fast as governments recognize these firms are essential to sovereignty and resilience—global military expenditures are growing at their highest rates since the Cold War. We expect dual‑use companies to become some of the most attractive growth stories in 2026. —Nic Brathwaite, founding managing partner, Celesta Capital

Defense tech investing will continue to gain momentum globally. The continued conflicts in Ukraine and Gaza have convinced the EU to invest almost a trillion dollars to rearm themselves and ensure a sovereign defense posture. —Brad Harrison, managing partner, Scout

In 2026, aerospace and defense investing is primed to accelerate further with more investors entering the sector and deal structures broadening across dual-use and mission-critical technology. The full force of that upswing is highly dependent on U.S. defense contracts rolling again. —Anita Antenucci, founder and managing partner, 3Wire

AI starts to hit the physical world: robots begin to move out of the lab and ship the first production-ready, end-to-end systems into biopharma labs, manufacturing lines, and logistics warehouses. Not prototypes. Not pilots. Revenue-generating deployments that deliver ROI. —Talia Goldberg, partner, Bessemer Venture Partners

Robotics reaches escape velocity, and the real boom hits in 2027. 2026 marks the rapid emergence of a unified robotics market. The true mainstream adoption wave — warehouses, micro-factories, home services—hits in 2027 as platforms stabilize. —Anders Ranum, partner, Sapphire Ventures

Silicon Valley is shifting its attention back to hardware as demand for compute and energy accelerates. Chips, energy systems and critical physical infrastructure are reemerging as the engines of the next wave of progress. Robotics is set to become one of the most important innovation arenas as we move toward 2026. —Luke Pappas, partner, NEA

We think 2026 will be the year where we start to see deployments of this new generation of AI-driven robotic systems in industrial (manufacturing and logistics) settings and service industries such as hospitality and healthcare. —Emily Zhao, principal, Salesforce Ventures

See you tomorrow, 

Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
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Joey Abrams curated the deals section of today’s newsletter. Subscribe here.

VENTURE CAPITAL

– Soley Therapeutics, a South San Francisco, Calif.-based drug discovery and development company, raised $200 million in Series C funding. Surveyor Capital led the round and was joined by HRTG Partners, RWN Management, and existing investors.

– Corsera Health, a Boston, Mass.-based cardiovascular health prediction and prevention platform, raised $80 million in Series A funding. Forbion and Population Health Partners led the round and were joined by others.

– Mediar Therapeutics, a Boston, Mass.-based developer of therapies designed to stop fibrosis, raised $76 million in Series B funding. ICG Life Sciences and Amplitude Ventures led the round.

– Blackbird.AI, a New York City-based developer of an AI model designed to identify narrative threats to companies, raised $28 million in funding from Ten Eleven Ventures, Dorilton Ventures, and others.

– Luminate, a Galway, Ireland-based at-home cancer treatment company, raised $21 million in Series A funding. ARTIS Ventures and Lachy Groom led the round and were joined by Western Alliance Life Sciences and existing investors 8VC, Y Combinator, Atlantic Bridge, and others.

– Autonomous Technologies Group, a New York City-based developer of AI agents designed to serve as financial advisors, raised $15 million in pre-seed funding from Y Combinator, Collaborative Group, Fusion Fund, and others.

– Biographica, a London, U.K.-based company using AI to decode crop genetics, raised £7 million ($9.4 million) in seed funding. Faber VC led the round and was joined by SuperSeed, Cardumen Capital, The Helm, EQT Foundation, Sie Ventures, and existing investors.

– AgileRL, a London, U.K.-based developer of AI training, tuning, and deployment company, raised $7.5 million in funding. Fusion Fund led the round and was joined by Flying Fish, Octopus Ventures, Entrepreneur First, and Counterview Capital.

– Oasys, a New York City-based developer of an AI-powered operating system for behavioral health, raised $4.6 million in funding from Pathlight Ventures, Twine Ventures, Better Ventures, and 1984 Ventures.

PRIVATE EQUITY

– Arxis, a portfolio company of Arcline Investment Management, acquired Micro-Tronics, a Tempe, Ariz.-based producer of components for aerospace and defense applications. Financial terms were not disclosed.

– Atar Capital acquired DataMaster Online, a Saint-Grégoire, France-based printing solutions company. Financial terms were not disclosed.

– ATL Partners acquired SkyMark Companies, a Kansas City, Mo.-based manufacturer of aircraft fueling trucks and hydrant dispensers, and Rampmaster, a Coatesville, Pa.-based manufacturer of aircraft refueling solutions. Financial terms were not disclosed.

– AxioAero Group, a portfolio company of CORE Industrial Partners, acquired Airway Aerospace, a Doral, Fla.-based airplane repair company. Financial terms were not disclosed. 

– Gemspring Capital acquired TRG, a Cleveland, Ohio-based provider of enterprise mobility and technology lifecycle management solutions. Financial terms were not disclosed.

– Gryphon Investors announced a majority recapitalization of Fortreum, a Lansdowne, Va.-based cybersecurity firm. Financial terms were not disclosed.

– Kelvin Group, backed by Southfield Capital, acquired PermaCold Engineering, a Portland, Ore.-based ammonia and carbon dioxide refrigeration system company. Financial terms were not disclosed.

– PestCo Holdings, a portfolio company of Thompson Street Capital Partners, acquired Bio-Tech Pest Control, a Spring, Texas-based pest control company. Financial terms were not disclosed.

– Proven Optics, a portfolio company of Silversmith Capital Partners, acquired brightfin, a Centennial, Colo.-based developer of Service Now Technology Expense Management and digital workplace solutions. Financial terms were not disclosed.

– PureStar, backed by Cornell Capital, acquired Emerald Textiles, a San Diego, Calif.-based health care linen services provider. Financial terms were not disclosed.

– TA Associates acquired a majority stake in OneSource Virtual, a Dallas, Texas-based provider of HR payments services for the Workday ecosystem. Financial terms were not disclosed.

– The Blackhawk Group, backed by New State Capital, acquired Silver Sky Aviation, a Wasilla, Ak.-based aircraft maintenance company. Financial terms were not disclosed.

EXITS

– A. O. Smith acquired Leonard Valve, a Cranston, R.I.-based water temperature control valve company, from Bessemer Investors. Financial terms were not disclosed.

– Service Express, a portfolio company of Warburg Pincus, acquired Park Place Technologies, a Cleveland, Ohio-based IT infrastructure services company, from GTCR and Charlesbank. Financial terms were not disclosed.

IPOS

– Aktis Oncology, a Boston, Mass.-based biotech company focused on solid tumors, now plans to raise up to $318.6 million in an offering of 17.7 million shares priced between $16 and $18 on the Nasdaq. The company posted $6 million in revenue for the year ended Sept. 30. MPM BioImpact, Vida Ventures, EcoR1 Capital, and Blue Owl Capital Holdings back the company. 

FUNDS + FUNDS OF FUNDS

– Warburg Pincus, a New York City-based private equity firm, raised $3 billion for its third fund focused on financial services companies.

– Lux Capital, a New York City and Menlo Park, Calif.-based venture capital firm, raised $1.5 billion for its ninth fund focused on emerging science and technology companies.

PEOPLE

– Savory Fund, a Lehi, Utah-based private equity firm, promoted Shauna K. Smith to managing director and named Clay Dover as CEO. Formerly, Dover was CEO of Velvet Taco.

The U.S. Supreme Court could rule as soon as Friday on whether President Trump’s tariff regime is unconstitutional. If the court strikes down his trade policies, it could jeopardize up to one-third of Trump’s newly proposed military budget, according to a post by the president on social media.

Trump said Wednesday on Truth Social that he wanted to increase U.S. military spending from $1 trillion to $1.5 trillion. “I would stay at the $1 Trillion number but, because of Tariffs, and the tremendous Income that they bring, amounts being generated, … we are able to easily hit the $1.5 Trillion Dollar number.”

Most observers, however, are expecting the court to strike down his tariff regime or at least curtail it. At oral arguments, the justices expressed scepticism that the White House has the power to impose taxes on trade without the permission of Congress under the International Emergency Economic Powers Act (IEEPA).

“The betting markets think there’s a high chance the White House loses its appeal and that could see a raft of tariffs—including so-called ‘reciprocal’ levies on the E.U., China and the rest of the world—struck down,” ING told its clients in an email seen by Fortune. Bettors on Kalshi give only a 29% chance of Trump’s tariffs surviving; it’s just 25% on Polymarket. 

About 1,000 companies are petitioning the court to scrap the tariffs. If they are successful, the White House would have to figure out a mechanism to pay them all back. That would be a non-trival undertaking. According to data from Bloomberg provided to Fortune via Pantheon Macroeconomics, tariff revenue is being generated at a current rate of $30.4 billion per month, for an annualized rate of $364.5 billion. (Notably, that number is below the extra $500 billion Trump wants to spend on the military.)

Trump has previously warned that it “would be a National Security catastrophe” if he was forced to refund the tariffs.

Defense stocks are all over the place

U.S. defense company stocks sold off sharply yesterday for a separate but related reason: Trump signed an executive order that potentially bans military supply chain companies from making stock buybacks or setting senior executive compensation higher than $5 million if the White House thinks they aren’t working fast enough or producing high-quality equipment.

“If Raytheon wants further business with the United States Government, under no circumstances will they be allowed to do any additional Stock Buybacks, where they have spent Tens of Billions of Dollars, until they are able to get their act together. Our Country comes FIRST, and they’re going to have to learn that, the hard way!” Trump said on social media.

S&P 500 futures were down this morning after the index fell yesterday. Markets were broadly down in Asia and Europe. Defence stocks are seeing a high level of volatility in reaction to Trump’s various statements.

“President Trump’s social media posts dragged on shares of homebuilders and defence companies,” Jim Reid and his colleagues at Deutsche Bank told clients this morning. 

“Defence contractors including Northrop Grumman (-5.50%), Lockheed Martin (-4.82%) and RTX (-2.45%) slid on the news. However, there were potentially better news for defence firms after the close, with Trump demanding a boost in the 2027 US defence budget from $1trn to $1.5trn. It is $901bn in the current 2026 fiscal year. The renewed policy risks left the S&P 500 -0.34% lower by the close,” they said.

In overnight trading, those stocks popped upward again following Trump’s $1.5 trillion budget proposal. Northrop Grumman rose 7.28%, Lockheed Martin rose 6.71%, and RTX (owner of Raytheon) rose 5%.

If the court rules against Trump, expect those stocks to take another battering, given that the end of the tariffs threatens such a large proposed chunk of Department of War spending.

Also on the radar:

JPMorgan noted that retail stock buyers started the year bullish. They net bought $10.1 billion in stocks in the first week of the year, above the weekly average of $6.5 billion, according to Arun Jain and his team. Most of that ($7.2 billion) went into ETFs.

More cracks in the private credit market, according to S&P Global’s With Intelligence unit. Selective defaults were up as was the use of “Payment-in-Kind” provisions—extra payments that companies promise their lenders if they cannot meet the initial terms of their debt. PIKs are generally associated with lower quality debt.

2026 Bitcoin forecasts are all over the place. CNBC did a roundup of experts’ forecasts for the cryptocurrency’s performance this year and found a wild spread of predictions—perhaps unsurprising given that there is no way to calculate the fundamental value of a piece of code that has no underlying asset behind it.

Here’s a snapshot of the markets ahead of the opening bell in New York this morning:

• S&P 500 futures were down 0.25% this morning. The last session closed down 0.34% at 6,944.82, a record high.
• STOXX Europe 600 was down 0.38% in early trading. 
• The U.K.’s FTSE 100 was down 0.29% in early trading. 
• Japan’s Nikkei 225 was down 1.63%.
• China’s CSI 300 was down 0.82%. 
• The South Korea KOSPI was flat.
• India’s NIFTY 50 was down 1.01% 
• Bitcoin sank to $90.1K.