Perplexity enters the Samsung galaxy

Top News

• Samsung hearts Perplexity: As Google is forced to reckon with a potential future in which it cannot pay to become the default search offering on mobile devices, a smaller rival is looking to replicate its playbook. Bloomberg reports that AI search comapny — and TWiST500 member! — Perplexity is working on a deal with Samsung that could see its software installed on the South Korean electronics giant’s hardware. Perhaps even taking position inside of Samsung’s mobile browser. If it manages the deal, Perplexity’s effective user base could quickly scale in the coming quarters.

• xAI to execute massive secondary offering: OpenAI and Anthropic have been all over the news lately for their acquisitions (OpenAI), new country-level buildouts (OpenAI), new models and revenue milestones, but there’s even more AI foundation model news to take in. TWiST500 co-member xAI — which recently ingested X, formerly known as Twitter — will allow existing shareholders to cash out around $300 million worth of equity in the company, at what the FT reports is a $113 billon valuation. That price makes xAI worth about twice Anthropic, and around a third of OpenAI. The FT says that the tender offer could be followed by an even larger primary fundraising event.

• AI is worth about two weeks (so far): A Microsoft study that gave 30,000 UK civil servant access to its AI productivity tech found that workers would save about two weeks of time per year. That’s not nothing, but is a bit short of revolution. While Microsoft is trumpeting its present-day results, we reckon that the number will double this year and perhaps again next year. Then we’ll really be on a roll. Towards fewer total needed humans to run government, at least.

TWiST500

After adding a raft of companies to the TWIST500 last Friday, let’s take a pause from additions today and instead focus on the upcoming IPO run that includes a number of names we’re familiar with. Here’s the latest:

• Chime sets first IPO terms: With a price target of $24 to $26 per share, American neobank Chime is looking to secure a roughly $11 billion valuation when it lists. As discussed on the show today, at that price Chime would trade — by one measure — at a premium to Nubank. It’s hard to cry over that result, even if Chime’s 2021-era investors are not set to do great, as the company is worth about 40% of its peak-value per its IPO price range. Chime is expected to price its IPO on June 11th, and trade starting on June 12th.

• Circle wants a bigger IPO: Meanwhile, Circle has raised its IPO price range from $24 to $26 per share to $27 to $28. And it has greatly boosted its expected primary (9.6 million to 12.8 million) and secondary (14.4 million to 19.2 million) share sales it expects in the transaction. More shares at a higher price? Yes, Circle is going to go public worth more money than we expected. Final pricing will come on June 4th with trading the following day.

There are other TWiST500 names that are on our IPO watch list: Figma, for one has filed to go public. Turo might make a return. Cerebras Systems is still in the wings. Lots of VCs will have but a small piece or no piece at all in the above deals. And they will want to get in on the IPO train as soon as possible.

But let’s not get greedy. With two decacorn IPOs in the next week or two we’re feasting compared to 2024, right? — Alex

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This Week in Startups

E2132: Jason’s busying himself in Singapore this week, so Alex is flying solo on today’s new TWiST, and chatting it up with two fascinating founders who are working on cool new AI innovations. First, from Athena HQ, Andrew Yan explains Generative Engine Optimization (GEO) and how it will help brands rank better in AI-powered search engines. Then, Magnus Müller from Browser Use tells us how he’s making AI agents even smarter.

E2131: Jason’s in Singapore but he refuses to miss an episode, so we’re still doing TWiST. Along with Alex and Lon in the US, he check out Google’s new “Stitch” AI design took, examines Salesforce’s acquisition of Informatica and what it means for the wider world of M&A, and hypes up Circle’s IPO and the future of stablecoins. PLUS why Jason is bullish on Joby, Trump’s “golden share” of US steel, and much more.

E2130: On Friday’s pre-holiday TWiST, Jason, Alex and Lon talk about President Trump’s latest tariff announcement and its potential impact on Apple and iPhones. Plus, Claude gets a fresh upgrade, OnlyFans may be for sale, and the crew debates whether or not we really need “smart” toilets. PLUS the final round of the Founder Friday city competition! See who wins!

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