Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. Want it in your inbox every Friday? Sign up here.
This week we are diving into the world of AI founders who are shaking things up, a significant defense tech investment, and updates from Techstars. Let’s explore further.
Most interesting startup stories from the week
Founders and key executives at top AI startups have been making some interesting moves this week.
OpenAI shuffle: John Schulman, a co-founder of OpenAI, has left the company to join rival AI startup Anthropic, following the footsteps of Ilya Sutskever, the former OpenAI chief scientist who departed the company in May to start his own venture. Meanwhile, OpenAI president and co-founder Greg Brockman has decided to take an extended break from his role at the company, opting not to appoint a replacement. Read more
Character development: The founders of Character.AI have also seen some changes. The CEO, Noam Shazeer, returned to Google to join the DeepMind team, while co-founder Daniel De Freitas and other team members are also transitioning to Google as part of a technology agreement. Read more
Mega ammo: Defense tech startup Anduril has secured $1.5 billion in fresh funding, valuing the company at $14 billion. With a focus on autonomous military systems, Anduril aims to compete with major defense contractors like Lockheed Martin and General Dynamics. The funding round was led by Founders Fund and Sands Capital, with new investors including Fidelity Management & Research Company and Baillie Gifford. Read more
GrubMarket cracks Good Eggs: B2B produce and logistics company GrubMarket has acquired Good Eggs, a fresh food delivery startup, marking a significant shift in valuations. Read more
Most interesting fundraises this week
Chipping away: Groq, a chip manufacturer for AI models, raised $640 million at a $2.8 billion valuation. Competing with major players like Nvidia, Groq is making waves in the AI chip market. Read more
Location, location, a bump in valuation: Location analytics startup Placer.ai secured an additional $75 million in funding, boosting its valuation to $1.45 billion. Read more
why?! not: The founders of why?! have launched a new social networking startup focused on combating loneliness, raising $1.65 million in a pre-seed round. Read more
AI for little ones: Heeyo, a startup offering AI chatbots for children, raised $3.5 million to provide interactive games and activities. Read more
Most interesting VC and fund news this week
Falling stars: Techstars faces changes with layoffs and the winding down of the Advancing Cities program. Read more
Flint Capital sparks funding: Boston-based Flint Capital raised a $160 million third fund, supporting tech entrepreneurs and successful startups. Read more
Last but not least
While funding challenges persist, new unicorns continue to emerge in the startup world. Find out who grew a horn in 2024.
