Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday.
Hello, startup enthusiasts! This week, I had the pleasure of immersing myself in the world of AI startups and tech giants at GTC in San Jose. I have some intriguing stories to share from there, so stay tuned. Meanwhile, let’s dive into the exciting startup coverage from TechCrunch over the past week!
Let’s talk about microbiomes… Image Credits: Krisztian Bocsi/Bloomberg via Getty Images
In a surprising development, Microsoft has acquired Inflection, an AI startup that had raised $1.3 billion nine months ago. This acquisition sees Inflection’s co-founders, Mustafa Suleyman and Karén Simonyan, joining Microsoft to lead the new Microsoft AI division. This move leaves Inflection, now under the guidance of Reid Hoffman and new CEO Sean White, facing challenges as it tries to salvage the founders’ ambitious project. Microsoft’s dual role in this scenario raises questions, positioning itself both as a savior and an opportunist in the AI space.
On the biotech front, the microbiome has emerged as a promising frontier for personalized health solutions, addressing issues from digestive problems to skin conditions. However, a Science report has raised concerns about some microbiome companies operating with more enthusiasm than scientific rigor. Despite the criticism, companies like Parallel Health, Tiny Health, and Daye defend their approaches, emphasizing their dedication to scientific integrity.
- Investors flock to AI: Astera Labs’ IPO soars 72% on the first day, reflecting high demand for AI technology.
- Apple ventures into AI: Apple quietly acquires DarwinAI, a Canadian startup specializing in vision-based AI for smart manufacturing.
- Expanding horizons: TipTop expands its platform to offer diverse device purchasing options, including open-box and refurbished devices.
Noteworthy Fundraises of the Week
Sneaking in some healthcare through the side door. Image Credits: Getty Images
Telegram, with over 900 million users, raises $330 million through bond sales, aiming for profitability next year. The company seeks to continue its growth trajectory, attracting significant investment.
- Healthcare Integration: Embedded insurance and health solutions gain traction, offering innovative approaches to the sector.
- Green Initiatives: Greenly’s carbon accounting software aids companies in navigating sustainability challenges.
- Browser Evolution: The Browser Company secures $50 million investment to redefine digital experiences.
Weekly Trend: The Rise and Fall
Fisker had a great run but has now paused production. Image Credits: Fisker
Recent events highlight the dynamic nature of startups, with some soaring to new heights while others face challenges or changes in direction. One such example is the dispute between Google and the EU over the misuse of news content for AI model training.
- Rising from Challenges: Copilot thrives as Mint exits the budgeting app space, offering a fresh perspective on personal finance management.
- Changing Courses: Fisker pauses production, facing financial difficulties in a cautionary tale for the industry.
- Rebranding Resilience: Nu Ride emerges from bankruptcy, confronting Foxconn over past disputes.
Additional TechCrunch Highlights
Explore some intriguing TechCrunch stories that cover a range of topics:
- Employee Stock Conditions: SpaceX introduces unique stock award conditions for employees.
- Content Restrictions: Gumroad tightens restrictions on NSFW content creators due to payment processor regulations.
- AI and General Intelligence: Nvidia CEO shares insights on artificial general intelligence.
- AI Marketplace Dynamics: OpenAI’s GPT Store raises concerns over AI moderation and copyright issues.
- Robotics Partnerships: Apptronik partners with Mercedes-Benz in the realm of humanoid robotics.
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