Omi launches wearable AI ‘brain interface’

Top News

• Microsoft believes small can be mighty: While OpenAI pushes massive models, Microsoft’s open-source Phi-4 proves smaller models can still dominate. With 14B parameters, Phi-4 outperforms larger rivals like Google’s Gemini Pro in reasoning tasks—now available on Hugging Face with an MIT license. Microsoft’s move to release Phi-4 with full weights signals a shift toward efficiency and accessibility in AI. By outperforming larger models while using fewer resources, Phi-4 could pave the way for mid-sized organizations to adopt powerful AI without breaking the bank. This release shows that the AI race isn’t just about scale—it’s about being smart with design and deployment.

• JP Morgan Sues Viva Wallet: The battle over fintech Viva Wallet heats up as JP Morgan files lawsuits in Greece and the UK, seeking $944M and alleging unlawful actions by Viva’s CEO. The U.S. bank, which invested $800M for a 48.5% stake in 2022, accuses Viva of undermining its value and breaching agreements. Viva’s CEO calls the lawsuits "intimidation" tactics, claiming JPM is trying to stifle its global expansion. With a critical $5B valuation threshold looming in 2025, the fight over control of Viva Wallet is far from over. This is a high-stakes showdown that could reshape fintech in southern Europe.

• OMI enters the wearable AI race: Based Hardware’s $89 Omi promises to boost productivity with an always-on AI assistant you can wear as a necklace—or tape to your head for a “brain interface.” Built on an open-source platform, Omi lets developers create custom apps, but questions remain about its privacy and whether the "brain interface" actually works. With founder Nik Shevchenko’s bold marketing stunts and $150K promotional videos, Omi aims to stand out in a crowded field of AI devices that haven’t yet lived up to the hype. Will this Mentos-sized gadget finally deliver? Only time—and users—will tell.

TWiST500

Today, Alex and I sat down and added about 15 new companies to the TWiST500. Our goal is to hit 400 by the end of the month. Here are some highlights from two of the new additions:

• Sila Nanotechnologies: The future of energy storage lies in innovation, and Sila is leading the charge with silicon anodes that outperform traditional lithium-ion batteries. With EVs and renewable energy dominating headlines, Sila’s tech could define the next era of energy. In June 2024, the company secured $375 million in a Series G — led by existing investors Sutter Hill Ventures with participation from Bessemer Venture Partners, Coatue, Perry Creek Capital, and others. This funding will enable Sila to complete its U.S.-based manufacturing facility by early 2025, scaling production of its Titan Silicon anode material. As automakers look to reduce reliance on China for critical battery components, Sila’s domestic production capacity could become a key advantage.

• GoodLeap: Financing the green future is no small task, but GoodLeap is making it look easy. Specializing in sustainable home improvements and clean energy financing, they’ve tapped into the growing demand for eco-friendly solutions. As green energy adoption skyrockets, GoodLeap is positioned to be the financial backbone of this revolution. Onto the list they go.

More TWiST500 updates to come! —Maddie

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This Week in Startups

E2069: Jason and Alex kick off the episode with a discussion about the recent fires in Pacific Palisades and Malibu, exploring the implications for insurance and startup opportunities. They dive into Meta's new content moderation strategy, analyzing Zuckerberg's motivations and potential actions from leadership. The conversation shifts to NVIDIA's AI supercomputer chip, Lenovo's rollable laptop, and Slack's iOS integration, showcasing cutting-edge innovations in tech. The episode wraps with a look at BYD's new supercar, Anthropic's valuation, and Jason’s experience with luxury Japanese minivans.

E2068: Jason and Alex kick off the episode with TWiST’s new interactive “live docket” experiment and dive into the Vail Resorts Epic Pass controversy, critiquing its management and stock performance. They explore Sam Altman’s insights on fusion energy, U.S. innovation, and rural business subsidies. The conversation shifts to cybersecurity concerns over Chinese hacking and China’s economic struggles, emphasizing domestic production. The episode wraps with a thoughtful discussion on handling online criticism and tips on security for public figures in a less empathetic online world.

E2067: Jason and Alex kick off the year reflecting on mindfulness, family moments, and Instacart’s funding rounds, while Jason highlights his renewed focus on early-stage investing and Founder University. They dive into venture capital trends, including the concentration of fundraising and its impact on seed rounds, as well as challenges and solutions for H1B visa reform. The episode wraps with predictions for startup failures by 2025, potential mergers in the autonomous and on-demand sectors, and updates on opportunities for founders through Founder University.

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• Oracle: Oracle Cloud Infrastructure, or OCI, is a single platform for your infrastructure, database, application development, and AI needs. Save up to 50% on your cloud bill at ⁠Oracle.com/twist

• Squarespace: Turn your idea into a new website! Go to https://www.Squarespace.com/TWIST for a free trial. When you’re ready to launch, use offer code TWIST to save 10% off your first purchase of a website or domain.

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/.

The TWiST500 newsletter is the new, updated, and improved TWiST Ticker.