If you’ve been keeping up with this newsletter, you might have noticed my recurring interest in AI, particularly generative AI. AIs, by design, tend to be remarkably average—perhaps the consequence of being trained on a vast array of knowledge. The key is utilizing AI tools for tasks where your own proficiency falls short. If you excel in art or writing, AI might disappoint. However, for the majority not blessed with exceptional writing skills, tools like ChatGPT offer significant advantages, especially in white-collar professions. Although, the day may come when we realize a house cleaner enjoys more job security than an office manager or secretary.
Now, let’s venture into the startup landscape and explore noteworthy updates from the TechCrunch archive over the past week.
Starting with the inevitable focus on AI:
OpenAI has introduced the GPT Store, a platform enabling developers to create and sell custom GPT-based conversational AI models. This move aims to enhance the accessibility and commercial viability of AI, paralleling the transformative impact app stores had on software distribution. Developers can not only build but also monetize their AI creations, presenting a new avenue for innovation and entrepreneurship in the AI realm. This development poses a substantial threat to startups that previously filled the gaps in ChatGPT’s offerings, especially those relying on such features for their business models.
AI isn’t limited to startups. During Apple’s Q4 earnings call, CEO Tim Cook emphasized AI as a foundational technology, highlighting recent AI-driven features in iOS 17. Apple continues to develop generative AI technologies, although specifics remain undisclosed.
Elon Musk announced that Twitter’s Premium Plus subscribers will soon gain early access to xAI’s new AI system, Grok, positioning it as a perk for the platform’s $16/month ad-free service tier.
In other news:
WeWork, once valued at $47 billion, has filed for Chapter 11 bankruptcy protection, revealing a significant collapse. With over $18.6 billion in debt, WeWork aims to convert $3 billion of debt into equity to address its balance sheet and costly leases.
01 Advisors, a venture firm founded by former Twitter executives Dick Costolo and Adam Bain, has raised $395 million for its third fund, focusing on Series B–stage startups in business software and fintech services.
Microsoft addresses the AI chip shortage by updating its startup support program, offering selected startups free access to advanced Azure AI supercomputing resources for developing AI models.
Sam Bankman-Fried, co-founder and CEO of FTX and Alameda Research, has been found guilty on all seven counts of fraud and money laundering. The collapse of FTX and Alameda Research, allegedly involving the misappropriation of over $8 billion in customer funds, led to Bankman-Fried’s indictment about 11 months ago. Sentencing is scheduled for March, with a possible maximum sentence of 115 years in prison.
- .Mr. Cooper, a mortgage and loan company, experiences a “cybersecurity incident” leading to an ongoing system outage.
- .The world’s largest aircraft, Pathfinder 1, is an electric airship prototype promising a new era in sustainable air travel, funded by Sergey Brin.
- .Arrival, an EV startup aiming to revolutionize electric vehicle production, faces severe operational challenges, including layoffs, missed production targets, and noncompliance with SEC filing requirements, resulting in a plummet from a $13 billion valuation.
