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.
Not much news from me this week, mainly prepping for TechCrunch Early Stage in Boston on April 25. It’s going to be a great show, and tickets are still available at early-bird prices if you act fast.
Top startup stories this week
Stability AI says goodbye to its founder and CEO, Emad Mostaque, who’s off to chase the decentralized AI dream, leaving the unicorn startup without a permanent CEO. The company, known for burning through cash, is now under interim co-CEOs Shan Shan Wong and Christian Laforte. Mostaque made a dramatic exit, citing the need to combat the “centralized AI” threat in the industry.
Microsoft secures co-founders and staff of Inflection AI and their technology for a hefty $650 million. The deal includes $620 million for tech usage and an extra $30 million to avoid potential lawsuits. Reid Hoffman, Inflection co-founder, reassured investors about returns, despite some conflicting numbers.
- Facebook’s secretive project: Facebook (now Meta) caught snooping on Snapchat data in a covert operation known as “Project Ghostbusters” to gain a competitive edge.
- Robinhood’s new credit card: Robinhood introduced the Gold Card offering 3-5% cash back for Gold members.
- Nvidia and AWS synergy: Nvidia and Amazon Web Services found success in their respective fields unexpectedly with gaming GPUs favored for AI workloads.
Stability AI CEO quits because you’re “not going to beat centralized AI with more centralized AI.” Image Credits: David Paul Morris / Bloomberg
Trend of the week: Transportation challenges
The New York Stock Exchange pushes out EV startup Fisker due to low stock prices and financial issues. Fisker’s struggles include plummeting stock prices, failed deals, and financial constraints.
- Canoo’s acquisition of Arrival: Bankrupt Arrival sells assets to Canoo in a deal focused on production and survival.
- Settlement with SEC for Lordstown Motors founder: Ousted founder settles with SEC over misleading investors about demand for the company’s flagship electric truck.
- Tesla’s one-month trial: Tesla offers customers a free trial of its driver-assistance system with compatible hardware.
Canoo delivers a Light Tactical Vehicle back in 2022. Image Credits: Canoo
Notable fundraises this week
Super{set} secures $90 million for data and AI-driven enterprise startups, focusing on practical applications and innovation. The company stands out as a venture studio with a unique approach.
Blueground, a proptech company, raises $45 million in a Series D round, expanding its fully furnished apartment rental empire globally despite market challenges.
- Wase’s biogas system: Wase introduces a compact system that treats by-products and turns them into biogas efficiently.
- New Summit’s climate fund: New Summit plans to raise a $100 million fund supporting climate tech and underrepresented fund managers.
- Ionobell’s battery technology: Ionobell secures funding for its silicon material promising improved capacity in electric vehicle batteries.
Image Credits: Lyudinka/Getty Images (modified by TechCrunch)
Other TechCrunch highlights
Here are some standout stories from TechCrunch that you shouldn’t miss:
- Sunshine’s unexpected direction: Marissa Mayer’s startup, Sunshine, shifts focus to mundane tasks like managing contacts and sharing photos.
- AT&T data leak: Personal details of 73 million customers leaked online, prompting concerns about privacy and data security.
- Apple’s competition tactics: Apple faces criticism for hindering Beeper’s iMessage solution for Android users, drawing attention from the DOJ.
- Glassdoor’s privacy misstep: Glassdoor faces backlash for adding users’ real names to profiles without consent, raising privacy concerns.
- Spotify’s e-learning venture: Spotify expands into e-learning, offering courses to engage users further within the platform.
