OpenAI responds to criticism of its Apple deal, Waymo updates, and new TWiST500 startups

Top News

• OpenAI pushes back against criticism of its Apple deal: Investors bid Apple’s shares higher in the wake of AI announcements (TWiST episode here). But not everyone is over the moon. After xAI’s founder criticized the tie-up, OpenAI’s CTO Mira Murati worked to placate the market, arguing that she and her company “care deeply about the privacy of our users and the safety of our products.”

• Waymo updates software after crash: After hitting a telephone pole, Alphabet self-driving company Waymo is recalling (read: updating) its fleet of 672 vehicles. The speed at which the Waymo improved its code is heartening.

• All the apps Apple killed: In the wake of its WWDC keynote, a lot of app companies could be in hot water as the tech giant creates more products and services that fill niches that smaller tech concerns once served.

The TWiST500

Here are this week’s TWiST500 additions (live discussion here). Don’t forget to flag startups that you think sit with the best by tagging @jason and @alex on X:

• Fintech From the world of fintech, Stripe, Chime, and Mercury were easy additions. These late-stage startups are well-known and for a reason. Stripe is one of the most valuable private companies in the world, thanks to its payment service, which powers a large chunk of online commerce. Separately, Chime proves that neo-banks can reach a mass-consumer scale, while Mercury is evidence of the same, but in a business context.

• HR Tech: Then there are the big HR payroll giants like Deel, Gusto, Remote, and Rippling. Each of these late-stage startups is worth billions, has a nine-figure ARR, and is a prime IPO candidate.

• AI Data: Earlier-stage startups also made the list. Alex brought TollBit and Human Native, given that at least one of their ilk can make piles of money from the AI boom. The companies collect rights from content owners and creators, licensing them to AI model makers from a single platform. The business model could help smaller websites get a cut of the money flowing from AI model concerns to large media companies.

• Legal Tech: From the grab-bag side, Harvey is another name we’re adding, thanks to its prominence in the legal tech AI space and potentially rising valuation.

• Web3: Finally, there’s Kraken, which is raising pre-IPO money and could be the next major breakout from the Web3 world into the public markets.

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TWiST500 News

• Harvey AI is raising capital at a $2 billion valuation, showing that fundraising for AI startups with early traction is far from over. According to Crunchbase data, the company was last valued at around $700M when it raised its Series B in 2023.

• TollBit raised back in March, but Human Native put new capital together this week, putting together a few million pounds.

• Rippling is making moves to limit the ability of employees who went to work at rival firms to participate in a tender auction, TechCrunch reports.

This Week in Startups

• E1964: Following Apple’s massive AI download at 2024’s WWDC, Jason and Alex discuss Apple Intelligence, Siri’s upgrades, why the company’s deal with OpenAI is so interesting, and more. Consumer AI is heating up!

• E1963: Jason and Alex discuss the state of seed investing, how to leave your employer and start a competitive company, and how anonymous apps impact society, particularly kids. Many founders raise less money when their companies are young to conserve equity, but how does that dynamic play with venture investors?

• E1962: In an interview with Jason, Intercom CEO and co-founder Eoghan McCabe discussed his return to the company, how AI will upend SaaS pricing, how quickly AI will progress in the next year, and what makes a great manager.