Can't Slop, Won't Slop

Author

Alex Wilhelm
September 30, 2025 • Estimated Reading Time: 8 minutes

Top News

  • It’s slop time: Days after Meta announced its ‘Vibes’ product 0— that will serve users an endless stream of AI-generated video — OpenAI announced Sora 2. Which will also serve up users an endless stream of AI-generated video. It appears that the TikTokification of AI is upon us, with foundation model companies eagerly serving up hot slop for the human trough. Sora 2’s technology certainly appears impressive. AI really can gin up videos today that are longer, more believable, and steerable than ever before. That’s great news for companies that want more video, more cheaply, but for the humans out there already oneshotted by doomscrolling and bedrot, we’re hardly pulling ourselves back from the abyss as a species…

  • Chips startups are hot, hot, hot: Instead of raising new capital at a reported valuation of up to $2 billion, chip startup Rivos may exit to Meta several publications report. And they’re not the only chips startup making headlines. Cerebras Systems just raised $1.1 billion at a $8.1 billion valuation, while Rebellions is putting together $250 million at a $1.4 billion valuation. As Nvidia’s market cap soars to $4.5 trillion, perhaps it was inevitable that startups scrapping for a piece of Jensen’s empire would see outsized investor interest. The question for you to decide is simply which one is going to change the world.

  • Wealthfront is going public: 2025 is shaping up to be the year of the fintech IPO. After Circle and Chime and eToro and Klarna, we’re set to enjoy yet another financial technology debut, this time from roboadvisor Wealthfront. The company is sizable, growing and profitable, a rare combination for a technology IPO. However, the company’s revenues are responsive to interest rates (Alex has more here), which could suggest that falling rates in the United States would ding its future growth prospects. So, it’s the perfect time to list!

TWiST 500

OpenAI is growing quickly and burning cash like a wildfire. Recent reporting from The Information sheds light on the AI model company’s finances:

  • Revenue of $4.3 billion, 16% more than its 2024 full-year revenue

  • Cash burn of $2.5 billion

  • Operating loss of $7.8 billion, inclusive of $2.5 billion worth of share-based compensation expenses

OpenAI expects revenues of $13 billion this year, The Information reports. With $4.3 billion worth of top line in the first two quarters of 2025 and a recent announcement that it had reached a $1 billion monthly revenue run rate, its goal appears within reach. At high cost.

But worry not, the company’s cash balances were $17.5 billion at the end of the second quarter, and they can raise more money whenever it wants (inferred from tender offers instead of primary share sales). So, Sam Altman & Team are hardly in danger of running out of money.

As well, as we discussed on TWiST recently, the company is preparing for a launch of advertising products. Given the scale of its consumer products, this move could easily create a material revenue stream to complement OpenAI’s subscription and API-led incomes.

Still, OpenAI’s competition have plans to dent its growth. Anthropic’s new Claude Sonnet 4.5 model has racked up positive reviews, xAI’s Grok Code Fast 1 model continues to dominate on OpenRouter, and open-source AI models from China are iterating quickly. Despite the entire world’s tech industry gunning for its crown, the company had a crusinginly impressive start to the year. Let’s see how big OpenAI is at year’s end, and if the leveraged bet on data centers will pay off as many hope. — Alex

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This Week in Startups

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.

E2183: What is “workslop”? In this TWiST, Jason, Alex, and Lon consider a new study out of Harvard and Stanford that finds many workers are using AI tools, but lazily and ineffectively, ending up creating MORE work for their colleagues. Could this explain the OTHER studies showing a lack of productivity gains from AI adoption? Maybe! Plus YouTube invites back banned creators, Stripe buys back its own shares, and much more.

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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/

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