Apple vs. xAI: Who ya got?!

Top News

• Apple moves to dismiss xAI suit: Apple has moved to dismiss TWiST500 company xAI’s recently filed lawsuit, which claims that Cupertino is unfairly biased against it in favor of OpenAI. The Grok maker suggests that Apple is acting in a monopolistic manner to bolster its arch-rival. Bear in mind, the history of disputes between the leaders of xAI (Elon Musk) and OpenAI (Sam Altman)! It was also recently reported that Apple has built a ChatGPT-like service that it could release publicly, adding to the story.

• AI is coming for math: What’s the value of solving math with AI? Axiom Math wants to find out. The startup just raised $64 million at a $300 million valuation (B Capital led, with Greycroft, Madrona, and Menlo participating) to create an AI model capable of solving complex maths and generating proofs, per Forbes. Will creating a digital AI brain that can handle tough math problems be worth enough for venture capitalists to bet on it? If Axiom wins in its market, what hedge fund and investment bank wouldn’t become paying customers?

• Vibe.co raises $50M: France-based Vibe.co’s on a tear. The company reports that it has crossed the $100 million ARR milestone in less than two years, making it one of the “Top 10 fastest-growing software companies ever,” in its own words. So what does it do? Vibe helps brands place “targeted advertising via streaming platforms,” Sifted reports. As streaming becomes ever more popular, and services expand their advertising-based offerings, Vibe wants to be the commercial layer between those platforms and the companies desperate to reach their audiences.

TWiST 500

Thinking Machines Lab has a product! Yes, after splitting from Sam Altman, OpenAI’s former CTO Mira Murati’s startup has actually launched something (other than a blog). Thinking Machines calls the product Tinker, offering its customers AI model fine-tuning as a service.

Fine-tuning AI models involves adapting them using customer data. If you want a model that’s good at x, you could take an open-source model and fine-tune it to be very good at that work, so long as you have lots of data on x.

By offering this as a service, Thinking Machines is sitting atop work by other AI companies that originally built the models in question. So, we can think of this iteration of Murati’s company as sitting atop the work done by Llama (Meta) and Qwen (Alibaba). If Tinker works well, it’s not hard to see the market for what it offers. What company wouldn’t want to use a model they fine-tuned instead of one they simply took off the shelf?

The reality is, most companies are not set up to do their own fine-tuning. They lack both the compute and expertise. But if AI is going to spread as far and wide as many think, lots of companies that will eventually use these tools will need their own AI models. Tinker could prove a key bridge between improving open models and mainstream adoption.

• Recall that while Meta’s Llama families have been more open than offerings from rivals, historically, it’s Chinese companies like DeepSeek, Z.ai, Alibaba, and Moonshot.ai that are making the most headlines when it comes to open-source AI tech.

Thinking Machines Labs is a TWiST500 company because it was founded by such a high-profile ex-OpenAI staffer, and the fact that it was able to instantly raise $2 billion at a $10 or $12 billion valuation, depending on the source. Now, with a product in the market, we can vet its performance on results instead of vibes. — Alex

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This Week in Startups

E2186: On a special Tuesday TWiST, Alex chats with Boom Supersonic founder/CEO Blake Scholl about picking up where the Concord left off, getting investors excited about jet engines in the era of AI Everything, and the complexities involved in designing the world’s fastest airliner. PLUS check out TWO MORE finalists in our Gamma Pitch Deck competition: Confy and The Drive AI.

E2185: Friend’s new AI pendant wants to be your new companion, but New Yorkers have had enough already. On a new TWiST, Jason and Alex consider whether they’d try out the beleaguered wearable, that promises to serve as a new social outlet for lonely people, but has been thus far ripped apart by reviewers and NYC subway commuters alike. PLUS Producer Claude got a new update, financial influencer Tai Lopez has warrants, and Jason walks us through the basics of private jet etiquette.

E2184: AI agent designers Factory raised $50M at a $300M valuation, prompting Jason and Alex to ask… how much capital is TOO MUCH? And are we facing down an AI coding bubble? PLUS a look at the very rapid rise and fall of the Neon app, some big questions about TikTok’s seemingly tiny US valuation, xAI sells Grok to the government for just 42 cents, AND Jason introduces us to a new category of AI Slop… THINKSLOP.

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Angel University is Back!

Jason and Mike Savino are hosting our next virtual Angel University workshop on Tuesday, October 7. Jason will share proven strategies he’s used to invest $200M+ in over 500 startups. Whether you’re new to angel investing or looking to sharpen your skills, this is your chance to learn directly from one of the most active angel investors in the world. Register now at angel.university!

Founder U is Coming to the MENA Region!

Our 12-week pre-accelerator—designed to help early-stage founders build and grow—kicks off this fall in Saudi Arabia. The first cohort launches in Riyadh on November 3rd, followed by in-person and virtual sessions throughout the program. Founders in MENA: this is your chance to turn your idea into a business and get world-class insights on building a successful startup. Apply today: https://mena.founder.university/

SF Live-Work Space Now Available

Need a flexible living and working environment in San Francisco? This thoughtfully designed loft-style residence at 787 Bryant St., the heart of the vibrant SOMA district and the city’s creative hub, is now available for rent or purchase. Check the listing for more details.

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