“Godmother of AI” raises $230 million for AI startup

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• Spatial intelligence startup raises $230 million: Stanford computer scientist Fei-Fei Li, often referred to as the “godmother of AI”, is challenging the idea that the AI bubble has popped. She recently co-founded World Labs, a startup focused on "spatial intelligence." The company will develop advanced AI models that can construct entire virtual worlds with realistic physics, logic, and detail, moving beyond current language-based generative AI. World Labs has already attracted $230 million in funding from investors, including Radical Ventures, NEA, and (surprise) Nvidia. While it may seem like investors are liberally handing out funding to AI startups, I’m sure the “godmother of AI” can live up to expectations.

• Y Combinator ups the number of cohorts: Starting in 2025, Y Combinator will increase its annual cohorts from two to four. No, this doesn’t mean more companies will join YC each year, but the cohorts will be smaller. This means there will be twice as many demo days, giving investors more opportunities to engage with startups.

• Waymo and Uber team up: Starting in early 2025, Uber users in Austin and Atlanta can book Waymo robotaxis through the app, building on their existing partnership in Phoenix. Waymo will handle the operation and testing of its autonomous vehicles, while Uber will manage fleet logistics such as cleaning and repairs. Despite facing a federal investigation over safety concerns, Waymo continues to expand its services, providing around 100,000 trips per week through its Waymo One platform in San Francisco, Phoenix, and Los Angeles.

New Rules for Shein

Amid US-China tensions, a new rule proposal from the Biden administration could directly affect one TWiST500 member—Shein. This proposal is intended to restrict the “overuse and abuse” of the de minimis loophole, a trade provision allowing shipments under $800 to enter the U.S. duty-free. The new rule could impact Chinese online retailers like Shein, which use the loophole to ship products directly to American consumers. Officials estimate that de minimis shipments have surged from 140 million to over a billion in the past decade, with Shein (and Temu) accounting for around 30% of daily shipments. In 2022, Gap and H&M paid $700 million and $205 million in import duties, respectively. When compared to Shein’s $0, some might say the fast-fashion giant has an unfair advantage.

But that doesn’t mean the company is unaware of their situation. Last summer, Shein’s executive chairman, Donald Tang, advocated for reform of the de minimis loophole, stating that it “needs a complete makeover to create a level playing field for all retailers”. This new ruling would most likely impact Shein’s financials as it attempts to go public, but given its 2x profit growth from last year, it’s hard to believe that consumer behaviour would change.

— Erika

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