Double-Dipping the Chips

Top News

• The U.S. government may acquire 10% of Intel: Reports that the United States government could take a stake in domestic chip giant Intel are coming into focus. The latest reporting indicates that the government may convert some of the grants that Intel received under the CHIPS Act into a shareholding that could reach 10% of the company’s worth. Some industry observers expect the government to convert other grants into stakes as well, creating the possibility of a public-private chip industry at home at scale.

• That’s how you get regulation: Last week Jason and Alex discussed Meta’s internal policies regarding AI chatbots and children. Jason awarded Meta the disgraziad moniker for allowing sensual chats between minors and AI models. That led to at least one Senator launching an investigation. Now, Texas is getting into the mix by putting together an investigation into both Meta and Character.AI over their models “potentially engaging in deceptive trade practices and misleadingly marketing themselves as mental health tools.”

• Anthropic demands more: American AI model giant Anthropic is in the process of raising more capital (as much as $5 billion) at a new, higher price tag (from $150 billion to $170 billion). You might think that merely desiring that much money at that high a price would put Anthropic at the mercy of its backers. The opposite, in fact. The Claude company is demanding, BI reports, that one of its longtime backers Menlo Ventures only invest its own capital in the coming round, and not resort to an SPV, or special purpose vehicle. SPVs have become a common tool for micro-funds to defend ownership in hot investments, and for super-late-stage rounds to close, too. Anthropic, reportedly annoyed at the number of SPVs floating around for its equity, is clamping down.

TWiST500

Just how far along are humanoid robots?

While many AI-first companies on the TWiST500 are scaling quickly and driving ever-larger ARR, many of the humanoid robotic startups that populate our list remain nascent in business terms. While it’s encouraging to watch Figure clap back at doubters by showing that its robots are more flexible than some might have thought, the Humanoid Robot Games in China demonstrated that there is much work yet to do before robots start taking labor away from actual humans en masse.

The Games, which featured “280 teams from universities and private companies in 16 countries” per the Times, pitted machine humanoids against one another in boxing, running, and other challenges. The results? Robots that are slower than humans, less consistent, and significantly less capable at landing a haymaker.

But the news is not all dour. Sure, Tesla’s Optimus bot might be suffering from a lack of hands, but in general, the technology on display in China at the Games was miles ahead of where it was a few years ago. Why? Cheaper manufacturing of the machines and advances in AI that allow for more generalized tasking.

Put another way, we’re actually seeing the acceleration in cost and performance from humanoid robots that many have expected; it’s just that we’re far earlier in the game than some wags would like to make it seem. We’re going to get there, and Figure, 1X, Apptronik, Cobot, and others could make a lot of money. Just not yet. — Alex

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This Week in Startups

E2165: Jason’s FIRED UP on today’s TWiST about the internal Meta doc laying out their rules and regulations for AI, including what the chatbots can and cannot say to users as young as 8 years old. (It’s unsettling!) PLUS is AI job displacement actually here? Why Jason’s feeling antsy about the spread of surveillance tech, those massive Cohere and Cognition rounds, AND combing through Sam Altman’s post-GPT 5 launch interview with The Verge.

E2164: It’s another all-star VC roundtable, with Jason’s special guests Dave McClure (Practical VC), Grady Buchanan (NVNG), and Tomasz Tunguz (Theory VC). Together, they’re going DEEP on the current venture landscape, discussing why companies are staying private for longer, whether VC marks are BS, when it’s time to embed an expert in a struggling company, and much much more.

E2163: Jason, Alex, and Lon are back together and discussing… what else… GPT psychosis! Is it real? What are the biggest warning signs? PLUS, thoughts on Trump’s Chinese export fees on AMD and Nvidia, why Jason was so upset at the NY Times exposé on Mark Zuckerberg’s Palo Alto compound, a new magnet for rare-earth minerals, and much 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 Cohort 11 is Accepting Applications

Applications are open for Founder University Cohort 11, a 10-week remote pre-accelerator program, where you will learn how to build a venture-scale startup, use AI to become a more efficient founder, and delight early customers. Submit your application at Founder.University - Cohort 11 will kick off in September 2025!

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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