Weekly Startup Analysis: Significant Changes in AI Industry Leaders
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There’s not that much news from me this week, but I’ve been doing a ton of prep for TechCrunch Early Stage taking place in Boston on April 25. It’s going to be a fantastic show, and you still have time to grab tickets at early-bird prices, if you’re quick.
Stability AI bids adieu to its founder and chief executive, Emad Mostaque, who’s decided to chase the decentralized AI dream, leaving the unicorn startup without a permanent CEO. The company, known for burning through cash faster than a teenager with their first debit card, is now in the hands of interim co-CEOs Shan Shan Wong and Christian Laforte. Mostaque, in a dramatic exit, took to X to proclaim his departure was all about fighting the “centralized AI” bogeyman because, apparently, the real problem in AI isn’t rogue robots but who gets to control them.
Microsoft has orchestrated a heist worthy of a Hollywood plot, snagging the co-founders and much of the staff of Inflection AI, along with the rights to use their tech, for a cool $650 million. The deal, which to me seems more like a ransom payment than an M&A push, includes $620 million for the privilege of using Inflection’s tech and an extra $30 million to ensure Inflection doesn’t sue for Microsoft’s bold talent grab. Reid Hoffman, Microsoft board member and Inflection co-founder, took to LinkedIn to assure everyone that Inflection’s investors would sleep well tonight, with early backers getting a 1.5x return and later ones a modest 1.1x, despite the math not quite adding up. It’s pretty bold to describe a 1.5x return as a “good upside,” by the way — most early-stage funds would be pretty displeased.
Stability AI CEO quits because you’re “not going to beat centralized AI with more centralized AI.” Image Credits: David Paul Morris / Bloomberg
The New York Stock Exchange has given EV startup Fisker the boot, citing its “abnormally low” stock prices. It seems Fisker’s financial runway is more of a tightrope, with shares plummeting over 28% in a single day, a botched deal with Nissan (or so the rumor mill suggests), and a triggered repayment clause in their loans that they can’t afford — painting a picture of a company teetering on the brink of a cliff. It won’t have helped, of course, that the EV manufacturer lost track of millions of dollars’ worth of customer payments.
Canoo delivers a Light Tactical Vehicle back in 2022. Image Credits: Canoo
Super{set} is doubling down on its bet on boring but bountiful data and AI-driven enterprise startups, having just added a cool $90 million to its war chest. This move comes hot on the heels of its $200 million exit from the marketing company Habu to LiveRamp. The company is not your average venture studio. With a lean portfolio of 16 companies and a penchant for turning venture capital investment memos from art into science, Super{set} is on a mission to engineer practical applications. With their new digs on an entire floor of San Francisco’s 140 New Montgomery building, they’re not just investing in startups; they’re buying into the future of the city itself.
Tired of cramped hotel rooms and landlords with an aversion to IKEA, Alex Chatzieleftheriou decided to fill the gap himself. Fast-forward through a pandemic-induced boom in nomadic working, and Blueground is now gobbling up the competition faster than a tourist at a free breakfast buffet. With the acquisition of companies like Tabas and Travelers Haven, Blueground has expanded its empire to include over 15,000 apartments across 17 countries, proving there’s no place like a home you can book for a month. Despite the proptech sector feeling the squeeze from rising interest rates, Blueground’s recent $45 million Series D funding round and a hefty debt facility suggest that investors are still willing to bet big on Chatzieleftheriou’s vision of a world where everyone can live in a fully furnished apartment, at least temporarily.
Every week, there’s always a few stories I want to share with you that somehow don’t fit into the categories above. It’d be a shame if you missed ’em, so here’s a random grab bag of goodies for ya:
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