Cursor attracts $2.5B valuations

Top News

• Upwind raises $100M at nearly $1B valuation: Israeli cybersecurity startup Upwind has raised $100M, pushing its valuation to around $850-900M, signaling strong investor confidence in cloud security as threats continue to evolve. The company’s focus on fortifying cloud infrastructure comes at a time when data protection is a top priority for enterprises globally.

• Anysphere’s AI coding tool skyrockets to $2.5B valuation: AI-powered coding assistant Cursor, developed by Anysphere, is on a tear with revenue jumping from $4M ARR to $4M monthly. VCs are taking notice, with unsolicited offers valuing Anysphere as high as $2.5B — up from a $400M valuation just four months ago. With Cursor's rapid growth and user adoption, the intense bidding war among Benchmark, Index, and other top investors signals the high-stakes race to own a piece of the future of AI-driven coding tools.

• Trump may be TikTok’s unexpected lifeline: Facing a federal ban deadline, TikTok could gain a reprieve with Trump’s win. After initially pushing for a ban in 2020 over data privacy concerns, the president-elect has since voiced support for keeping the app, even encouraging his followers to vote in its favor. Trump’s shifting stance may also be influenced by his connections with major GOP donor Jeff Yass, a partial owner of ByteDance, TikTok’s parent company. If you missed it, catch Jason and Alex’s take on this topic at the end of today’s Live News episode!

TWiST500

Donald Trump's return to the White House is set to shake up the AI industry, with major implications for TWiST500 companies like Anthropic, OpenAI, and xAI. Silicon Valley is buzzing as AI executives anticipate a friendlier environment for growth, with looser regulations, expanded export controls on chips, and a green light for big tech to resume full-scale acquisitions of AI startups.

One of the key shifts on the horizon is the potential repeal of Biden's executive order on AI, which emphasized safety and national security. While the intent was to mitigate catastrophic risks, many in the industry saw the order as stifling innovation. If Trump rolls back these regulations, companies like OpenAI, Anthropic, and others involved with the U.S. AI Safety Institute could enjoy fewer bureaucratic hurdles—but they'll also need to navigate the delicate balance between rapid innovation and maintaining safety standards.

Sam Altman of OpenAI and Jack Clark of Anthropic have already signaled their willingness to work with the Trump administration to ensure U.S. leadership in AI. Elon Musk's xAI is also expected to play a key role. With these key players in the mix, the future of AI in the U.S. could be one of explosive growth, provided ethical considerations keep pace.

— Maddie

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This Week in Startups

E2041: Jason and Alex dive into Apple's privacy challenges and discuss trust in tech companies. They explore recent trends in AI, including OpenAI's acquisition of chat.com and Reddit's evolving growth strategies. The episode wraps up with analysis on major IPOs, market trends, and Amazon's AI ambitions.

E2040: Jason and Alex sit down with Skydio CEO Adam Bry to explore the future of autonomous drones, from life-saving public safety applications to the challenges of competing with Chinese tech. They tackle Skydio's role as the largest US drone maker, cybersecurity risks, and the powerful impact of drone tech in defense and beyond. The episode rounds out with fresh takes on high-skilled immigration, geopolitical tension, and the evolving landscape of search engines and media.

E2039: In this episode, Alex chats with Exowatt’s Hannan Parvizian about tackling the soaring energy demands of AI and data centers. They delve into Exowatt's mission to provide affordable and sustainable power solutions for the tech sector, discussing the innovations and challenges shaping clean energy's future for data-intensive applications.

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LAUNCH Cloud Kitchens Incubator

Applications are open for Cohort 2 of the LAUNCH CloudKitchens Incubator (LiCK). We're looking for food entrepreneurs who wish to expand into the ghost kitchen space or tech founders with a team and a great idea. The application and more information can be found at https://ck.launch.co/.

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