Thu. 10/03 – The Monster OpenAI Raise

Oct 3, 2024 15m

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OpenAI raised their round, and it basically broke all the records. The whole Wordpress mess has gotten so crazy that WPEngine is suing. Using Ray-Ban Meta Smart Glasses to dox people in real time. And you’ll never guess the reason why you’re about to see more ads on streaming video. Hint: you’ll endure it.

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OpenAI raises $6.6 billion in largest VC round ever (Axios)
OpenAI asks investors not to back rival start-ups such as Elon Musk’s xAI (Financial Times)
OpenAI feels competitors breathing down its neck (Financial Times)
WP Engine sues WordPress co-creator Mullenweg and Automattic, alleging abuse of power (TechCrunch)
Someone Put Facial Recognition Tech onto Meta's Smart Glasses to Instantly Dox Strangers (404Media)
Spotify adds a new, automatically updating playlist for offline listening (TechCrunch)
Amazon to increase number of advertisements on Prime Video (Financial Times)
Venture Dealmaking Reflects Selective Tastes of Investors (Bloomberg)

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AI-Generated Summary

OpenAI's Record-Breaking Funding Round

OpenAI has successfully raised $6.6 billion, breaking records for the largest venture capital deal, bringing its valuation to $157 billion. Investors including Thrive Capital, Microsoft, and Nvidia have participated, enabling OpenAI to enhance its lead in AI research and expand its computational capabilities. With total liquidity exceeding $10 billion, the funding is aimed at establishing a for-profit structure within two years and aims to restrict rival companies' access to capital, causing potential tensions among competitors.

The WordPress Lawsuit Controversy

WP Engine has filed a severe lawsuit against Automatic and co-founder Matt Mullenweg, accusing them of extortion and abuse of power in their handling of WordPress projects. WP Engine claims Mullenweg has conflicts of interest that threaten the integrity of WordPress as an open-source platform. The lawsuit is a response to a proposed royalty scheme which WP Engine deemed unacceptable.

Privacy Concerns from Smart Glasses

A duo of Harvard students have developed a prototype of smart glasses utilizing facial recognition technology to instantly pull up individuals' personal information in real-time. While they aim to highlight the technological capabilities and dangers of unregulated privacy invasion, the experiment raises serious ethical and safety questions about enabling such technology without public oversight.

Spotify's New Offline Backup Feature

Spotify has rolled out an Offline Backup feature, which automatically curates a playlist of previously streamed songs for premium users, enhancing the offline listening experience. This feature aims to provide users with a larger selection of songs without the need for personalized algorithms.

Amazon's Increasing Ads on Prime Video

Amazon has announced plans to increase ad slots on Prime Video significantly due to robust performance since the introduction of ads in January. The move aims to enhance advertising capabilities while capitalizing on an expanding user base and global reach, despite facing stiff competition from other streaming services.

VC Trends in AI and Overall Investment Landscape

In Q3, U.S. VC investments grew by 8% year-on-year, with AI startups capturing a significant share. Despite the overall growth in the venture capital landscape, public market activities have dramatically decreased, indicating selective investor tastes and scrutiny towards startups.