OpenAI’s new era

Top News

• A new era at OpenAI: AI model giant OpenAI is considering moving to a for-profit model and offering equity to its CEO, Sam Altman. Given the company’s massive funding round that is currently closing, it’s not a shock that OpenAI is working to become a bit more like a traditional venture-backed startup. Investors putting that much capital to work want to ensure they have the best chance at a sizeable return. Expect the for-profit and equity stake moves to occur in short order.

• Base continues to soar: The Coinbase-backed Base chain, a layer-two blockchain built on Ethereum, is seeing real traction. The Block reports that Base’s ‘total value locked,’ or TVL, has reached $2 billion for the first time. That figure is up 370% so far this year. A few billion is not big money compared to the larger sums flowing around the crypto-world, but traction is traction — doubly so in web3, where technology can, at times, get ahead of use.

• Maybe the AI startups will be okay: AI startups are growing faster than SaaS startups, at least in their early days. That’s our takeaway from Stripe data, as reported by the FT, which wrote that a cohort of hot AI startups this year is reaching $1 million in revenue in 11 months (median), while a comparable basket of hot SaaS startups from 2018 took 15 months. Not all revenue is made equal — but the data point gently implies that despite all the handwringing about AI valuations, the startups in question are at least putting material top line into their income statement.

PIE and Comma AI Join the TWiST500

Closing out the week with two more TWiST500 names! We recently had the People's Internet Experiment, or PIE, on the show. The company’s goal of shaking up the Internet’s monetization structure is no small effort — and if it succeeds, it could make PIE a real standout tech shop. Onto the list it goes!

And then there’s Comma AI. Jason and I have discussed them on the show and interviewed them directly. Why do we think they are so neat? While self-driving technology is often brewed up behind closed doors and mediated in the real world with custom hardware, Comma is building open-source self-driving code and sells the gear you need to get your car set up and running. Venture-backed but not seemingly a bit more indie, Comma — like PIE — is playing in a massive market and has a shot at capturing real share. That’s just the type of company that the TWiST500 was built to highlight. Onward!

— Alex

A message from Oracle

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This Week in Startups

E2015: At LIQUIDITY Summit 2024, Phil Deutch discussed the growing energy demands of data centers, challenges in U.S. electricity transmission, and investment opportunities in sustainable energy. He covered innovations like AI, nuclear power, and solar, while addressing consumer awareness and the impact of AI and EV adoption.

E2014: Jason and Alex discuss OpenAI’s CTO departure, DOJ AI compliance guidelines, and trends in tech mergers and acquisitions, alongside the growing shift toward a cashless society. They also touch on startup funding, Instacart's valuation challenges, the AI-driven business super cycle, and the future of labor. The conversation ends with insights into vocational training opportunities, Google's career certificates, job expectations for young professionals, and the Tenet Media controversy.

E2013: Jason and Alex begin the show discussing a viral tweet from Harry Stebbings about venture capital and the balance between luxury and grit in entrepreneurship. They cover Amazon’s return to office policy, its use of generative AI, and the impact on innovation and stock price. They dig into antitrust enforcement in tech, Apple's AI advancements, and end with audience questions about return to office trends and app store rules.

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Founder University

Applications are open for Founder University Cohort 9, a 12-week remote pre-accelerator program tailored towards navigating early-startup practices, building an MVP, and growing traction. Submit your application at Founder University — Cohort 9 begins on October 25th!

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