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In a twist that shocks completely nobody and thrills pyromaniacs who love seeing cash burn, Elon Musk’s latest enterprise, xAI, has snagged an off-the-cuff $6 billion in funding. Valor, a16z, and Sequoia are stacking the cash on the xAI-shaped roulette desk, with Musk spinning the wheel.
Ivan ponders whether or not Musk’s newest market stab will lastly deliver us an AI so superior, our puny human brains can be much more out of date than they already are because of his different wild tasks.
I believe it’s fully bonkers. These traders appear to overflow with money and are contemporary out of skepticism. I can solely think about the pitch: “Picture an AI so powerful, it makes HAL 9000 look like a Roomba.” And, naturally, they threw cash at it. As a result of, nicely … Actually, I can’t see the logic.
What makes this notably nuts is that the $6 billion bonanza is simply the newest chapter in Musk’s epic saga of “how to get the world to fund my sci-fi fantasies.” The extra tales that come out about Musk, the extra you’d suppose folks would begin to hesitate earlier than investing. However apparently, because of this I’m a e-newsletter author and podcast host (we talked about this on Fairness in the present day as nicely) and never a VC. I’d suppose twice earlier than betting on the man who gave us self-driving vehicles that fail to notice fireplace vehicles and spacecraft that generally land but additionally generally explode in a fiery spectacle.
Right this moment is your final day to avoid wasting as much as $800 in your Disrupt cross. Ebook your early-bird cross by 11:59 p.m. PT tonight!
Most fascinating startup tales from the week
Welcome to the Wild, Wild West of fintech! Keep in mind that shiny shiny star referred to as Synapse? Yeah, it supernova’d. The banking-as-a-service startup was a phase that appeared to be careening towards the stratosphere, and Synapse itself was backed by a16z — however that didn’t assist any. The corporate collapsed quicker than my New 12 months’s resolutions. With 10 million customers now left within the lurch and plenty of fintechs scrambling to choose up the items, it’s a full-blown disaster on the market. It’s like “Game of Thrones” however with extra spreadsheets and fewer dragons. In the event you thought your week was tough, spare a thought for these caught making an attempt to entry their funds or save their jobs because of this mess. Buckle up — it will likely be a bumpy journey forward for fintech!
- Drama rides a bike: James Khatiblou, the 37-year-old proprietor and CEO of Onyx Motorbikes, handed away simply as his firm was circling the drain. With unpaid payments, an AWOL COO, offended clients demanding refunds for delayed e-bikes from China, and two former shareholders battling for management over Onyx’s remaining belongings … This can be a hell of a journey.
- Job cuts in automotive land: Lucid Motors is trimming the fats but once more, shedding 400 workers (6% of its workforce) simply in time for the launch of their first SUV. Apparently, they should “optimize resources.” CEO Peter Rawlinson believes a decrease headcount will assist ship the world’s finest SUV … In the meantime, Fisker has laid off a whole bunch in a determined bid for survival. Workers received the trace after they have been all of the sudden advised to work at home — presumably so nobody might hear the collective sighs of despair through the all-hands assembly.
- Elevating money to avoid wasting money: Relay simply pulled off a $32.2 million Sequence B funding spherical to assist small companies do extra than simply nervously refresh their financial institution balances. Their secret sauce? Specializing in the mom-and-pop retailers fairly than tech startups — take that, Silicon Valley!
Most fascinating fundraises this week
Firefly, the cloud asset administration startup that’s all about simplifying your digital chaos with “infrastructure as code,” has snagged $23 million in funding. This comes after an unimaginable tragedy — co-founder CTO Joseph “Sefi” Genis was killed by Hamas at a music competition. Regardless of this, Firefly’s crew selected resilience over retreat and continued to develop their income fourfold in 2023. So principally, Firefly is now untangling cloud complexities and navigating by way of real-world turmoil like absolute champs.
- That’s flippin’ nice: Google simply dropped an off-the-cuff $350 million into Flipkart, making it the newest VIP to again the Indian e-commerce powerhouse, which now has a valuation of $36 billion.
- You get a dinero! You get a dinero!: Sending a reimbursement dwelling simply received an entire lot chattier! Félix Pago, the fintech darling that’s making remittances as straightforward as sending a WhatsApp, simply snagged $15.5 million in funding. Overlook downloading apps or navigating advanced interfaces; this startup is utilizing WhatsApp’s chatbot.
- A dictionary with a unicorn horn: Extra funding is being poured into startups targeted on AI. DeepL, which builds automated textual content translation and writing instruments that compete in opposition to the likes of Google Translate and Grammarly raised an extra $300 million. It’s now valued at $2 billion.
Different unmissable TechCrunch tales…
Dreaming of tech IPO bonanzas in 2024? Effectively, get up and scent the elevated rates of interest! Regardless of Reddit, Astera Labs, Ibotta, and Rubrik managing to squeeze by way of the IPO door earlier this yr, it seems like most startups are nonetheless caught at dwelling of their PJs. Plaid’s CEO declared they’re staying personal for now, and Figma and Stripe are busy with tender gives like they’re internet hosting a bake sale as a substitute of prepping for an IPO. Databricks raised $500 million however isn’t feeling the general public market vibes both; possibly subsequent yr they’ll really feel extra extroverted. And Canva? They could take so lengthy to go public that we’ll be designing newsletters instantly from our mind implants by then. Keep tuned as TechCrunch continues to trace which startups will courageous the inventory market runway or keep hidden behind their enterprise capital curtains!
Extra high tales:
- What’s occurring in messenger land: Meredith Whittaker, the president of Sign, has had it as much as right here with tech trade “frat boys” and their “dorm room high jinks.” At VivaTech in Paris, she didn’t maintain again on her considerations about the whole lot from AI energy grabs by U.S. corporations to the EU’s misguided makes an attempt at regulation.
- AI in your ears: Welcome to the battle of generative AI devices, now that includes Iyo’s GenAI earbuds! Humane and Rabbit R1 flopped tougher than a fish out of water, however Iyo thinks it may well succeed the place they stumbled. Not like its predecessors’ weird lapel pins and overpriced handhelds that critics mentioned ought to’ve simply been apps, Iyo is betting on an already beloved kind issue: Bluetooth earbuds.
- Dude, the place’s my pockets?: Is it a hen? Is it a airplane? No, it’s the Ledger Stax, lastly descending from the crypto heavens 18 months after its grand announcement. This new high-end {hardware} pockets options an E Ink show designed by iPod guru Tony Fadell — sure, they’re bringing again e-reader vibes to your crypto wants.
- Wait, Foursquare had 105 workers to put off?: Foursquare simply gave 105 workers the boot in a bid to “streamline” operations and put itself on firmer monetary footing. CEO Gary Little, who would possibly as nicely have hit ship after which vanished into skinny air, didn’t shed a lot gentle on what comes subsequent.
- Let me summarize that for you: It seems like Apple is again to its outdated methods, able to “sherlock” one other revolutionary app characteristic. This time, it’s The Browser Firm’s Arc that’s within the crosshairs with its snazzy AI summarization instruments like “browse for me” and “pinch to summarize.” Apple’s rumored “smart recaps” in iOS 18 sound suspiciously related, probably turning Safari right into a one-stop store for AI-powered summaries of the whole lot from internet pages to missed notifications.