Andruil’s next funding round is a beast

Top News

• Anduril’s $28B valuation: Defense tech startup Anduril is raising $2.5 billion, doubling its valuation to $28 billion just months after its last round. Founders Fund is leading with a record $1 billion check. The company’s AI-powered defense systems and a billion-dollar weapons megafactory have fueled rapid growth, with revenue reaching $1 billion in 2024. As global conflicts drive military spending, Anduril is quickly becoming a major player in defense tech.

• Rapyd valuation takes a hit in new funding round: Payments startup Rapyd is raising $300 million, but at a $3.5 billion valuation—down 60% from its 2021 peak of $9 billion. Like Stripe and Klarna, Rapyd is facing tougher investor expectations and the end of easy fintech funding. The company plans to acquire a payment processor, betting that more scale will help it survive the slowdown. Growth isn’t enough anymore—fintechs need to show real profits.

• Shopify fights tariffs as Trump delays import rule change: Shopify is pushing back on new trade restrictions after Trump delayed changes to the $800 de minimis import exemption. Amazon and Walmart argue the rule lets Temu and Shein avoid tariffs, but Shopify says small merchants depend on it to stay competitive. The delay is a temporary win for Shopify, but the fight over who benefits from U.S. trade rules isn’t going away.

TWiST500

We have three things to discuss today: Two news items, and an interview recap. In order, I think:

• Safe Superintelligence raising more: Fintech companies need more revenue and cash flow than ever to defend prior valuations. AI foundation model companies, on the other hand? Not so much! SSI, the brainchild of former OpenAI chief scientist Ilya Sutskever and TWiST500 member company is raising again, Reuters reports. At a lower valuation? Of course not. The company could see its worth quadruple to $20 billion — or more — despite having no revenue. When investors think that you are building a large piece of the future, the sky really is the limit.

• OpenAI raising more: Speaking of the sky being the limit, OpenAI is also raising more money. SoftBank is on tap this time, with CNBC reporting that the AI foundation model company — and TWiST500 member! — is “close to finalizing” a $40 billion investment from SoftBank. The new cash could value the firm at $300 billion, or a few dozen billion more than Palantir is worth today.

• Orbit Fab on the show! Today, Jason and I had Daniel Faber from Orbit Fab on the pod to learn more about in-orbit refueling, the future of the space economy, and how with lower launch costs in the future, we’re about to be super serious about living and building off-world. As a sci-fi nerd deep in my heart, this sparked joy. Orbit Fab also has a big vision for the future that has asteroids in it. All I will say here is that this is one TWiST500 company I am so, so glad that we added to the list.

More next week! — Alex

A message from Squarespace

Turn your idea into a new website! Go to https://www.Squarespace.com/TWIST for a free trial. When you’re ready to launch, use offer code TWIST to save 10% off your first purchase of a website or domain.

This Week in Startups

E2082: Jason and Alex break down Trump’s latest move against the carried interest tax loophole—could this shake up venture capital? Then, Orbit Fab CEO Daniel Faber joins to discuss how his company is building “gas stations in space” to refuel satellites and enable the industrialization of space. Plus, Deel’s massive $300M secondary sale, the CapBase acquisition, and big shifts in the European AI and energy sectors

E2081: Jason and Alex break down Palantir's valuation, financial performance, and stock analysis. They dig into how Temu and Shein are taking advantage of a trade loophole and what it means for e-commerce. Then, Uber’s latest earnings lead to a discussion on the future of self-driving, with Waymo and BYD making big moves. They wrap up with a look at prediction markets, regulatory hurdles, and the shifting competitive landscape in tech.

E2080: Jason and Alex dive into the AI arms race, break down Lovable.dev’s insane growth to $10M ARR in weeks, and test whether AI can really replace software engineers. Plus, they analyze Trump’s latest tariff chaos and what it means for startups, global trade, and the economy.

TWiST Partner Offers

• Horatio: Customer experience can make or break your business. Horatio provides top-tier outsourcing solutions to support and delight your customers, so you can focus on growth. Visit https://www.hirehoratio.com/twist and get $2,000 off your initial set up.

• Atlassian: From MVP to IPO, Atlassian for Startups provides your team the right tools to plan, track and collaborate on work. Head to Atlassian.com/Startups/TWiST to see if you qualify for 50 free seats for 12 months.

• Oracle: Oracle Cloud Infrastructure, or OCI, is a single platform for your infrastructure, database, application development, and AI needs. Save up to 50% on your cloud bill at ⁠https://w⁠⁠⁠⁠ww.oracle.com/twist

Founder University

Applications are open for Founder University Cohort 10, a 12-week remote pre-accelerator program tailored towards navigating early-startup practices, building an MVP, and growing traction. Submit your application at Founder University— Cohort 10 will kick off Spring 2025!

The TWiST500 newsletter is the new, updated, and improved TWiST Ticker.