Q & A & AI

Top News

• Apple acquires Q.AI: The stealthy Israeli startup produces technology designed to interpret facial expressions, even “facial skin micro movements,” to understand a user’s desires without actual speech. According to Financial Times, the new Apple acquisition deal values Q.AI at an estimated $2 billion, ranking this among the largest acquisitions in the hardware icon’s history. Seems likely Apple plans to use this tech to enhance a forthcoming line of AI-powered wearables — headphones, smart glasses, and the like — allowing them to interpret facial expressions and gestures without requiring users to actually speak up. That helps Apple keep up, or even gain ground on, Meta, which already has AI-enabled Ray-Ban smart glasses on the market, and OpenAI, which is working with former Appler Jony Ive on some kind of mysterious AI wearable.

• Waymo reportedly hit a child: Jason has long predicted on the pod that any kind of accident involving a human being hit by an self-driving car could result in major pushback against automated vehicles. While a Waymo did strike and kill a beloved bodega cat late last year (RIP Kit Kat), it may sadly now be time to formally test his thesis. The National Highway Traffic Safety Administration (NHTSA) is investigating an incident that happened last week in Santa Monica, CA, in which a Waymo robotaxi allegedly struck a child near an elementary school. There are some extenuating circumstances… The Waymo reportedly broke hard, getting down to 6 mph from a cruising speed of 17 mph pre-collision, and the child apparently ran into the roadway suddenly after being obscured from sensors by a nearby SUV. Nonetheless, this could be a major test moment for the robotaxi explosion and how many “accidents” or mistakes the public will tolerate.

• SpaceX could merge with xAI: Reuters reports that two Elon Musk joints — rocket makers SpaceX and Grok creators xAI — could merge ahead of a “blockbuster” IPO. In addition to making the public hungrier to own the stock, bringing these teams together makes sense in light of SpaceX’s new goal of launching data centers in public. (It would also include the Starlink satellite team, which operates as a SpaceX division.) Reuters suggests the deal would involve an exchange of xAI shares for SpaceX shares; financial entities have apparently already been created in Nevada to make this happen. Currently, SpaceX is valued at $800 billion (making it the world’s most valuable private company); xAI is valued at a relatively lean $230 billion.

TWiST 500

We’ve got updates from two of the leading TWiST 500 startup niches this week.

First, German robotics startup RobCo (not a T500 member… yet!) raised $100 million in fresh funding from Lightspeed Ventures, Sequoia, and Exor, a holding/asset management company owned by Italy’s Agnelli family. If that name rings a bell, it’s probably because of paterfamilias Giovanni Agnelli, the founder of Fiat, whose descendants also own Chrysler, Jeep, and Dodge makers Stellantis, plus Ferrari. (Also in on the deal? An unnamed “billionaire Toyota dealer.”) The new funding gives RobCo a valuation north of $500 million.

The connection here is clear… Optimism that RobCo’s robots will soon be capable of operating on assembly lines and factory floors, ahead of an explosion in “Physical AI” applications. Of course, there are many robotics startups that are, in fact, on the T500 and are also competing in this same space. Physical Intelligence — which hopes to use AI to make robots more widely capable of a diverse set of tasks — raised $600 million in funding at a $5.6 billion valuation back in November.

ALSO: AdWeek ran a splashy profile on another T500 favorite: Higgsfield AI. Founder Alex Mashrabov — a previous AI lead for Snap Inc. — explains that the platform’s goal is not just to stand atop the text-to-video rankings, but provide an “end-to-end AI platform for social video creation.” And in case you’re wondering why this profile appeared in AdWeek, Mashrabov confirms that Higgsfield’s products are being geared specifically toward marketing teams. (This is why so much of their pitch centers around speed… Savvy marketers can spot online trends and produce content geared toward it very quickly, before the moment passes and viral attention turns elsewhere.)

Oliver from our new spinoff “This Week in AI” has been playing around with Higgsfield for a while now, and even used it to make a clip for the “All-In” podcast holiday party.

With SO MUCH competition in this space (we’ve also been checking out another text-to-video platform, Luma AI, on the pod recently), a little bit of differentiation can go a long way. While everyday users may continue to rely on Grok Imagine, Google’s Nano Banana, and other consumer-grade apps, Higgsfield hopes to win over brands with its all-in-one solution. – Lon

A message from Deel

Founders ship faster on Deel. Set up payroll for any country in minutes and get back to building. Visit deel.com/twist to learn more.

This Week in Startups

E2241: It’s our first-ever This Week in Cannabis roundtable, featuring insights from special guests Andrew Duffy (of Sparkplug), Ford Smith (of Ultranative), and Socrates Rosenfeld (of Jane). Together with Jason, they’re talking about the current regulatory environment around cannabis, and how that’s impacting startups… How investors are strategizing around cannabis startup exits… Whether or not cannabis is REALLY that much more potent than your parents’ and grandparents’ stashes… and much more.

E2240: It’s an all-Clawdbot deep dive TWiST. Jason’s back in Austin, and all anyone in American tech can talk about this week is the viral AI assistant, which thousands of developers are already running on newly-purchased dedicated Mac Minis. What is Clawdbot, and how can you put this 24/7 digital employee to work for you? Find out as Jason and Alex talk to the developers and influencers pushing the boundaries of what Clawdbot can accomplish, and writing the skills that are expanding its capabilities in real time.

E2239: It’s another TWiST Tokyo special edition, with our guests Max Weiss of Pacific Bays Capital, and American Medical Intelligence CEO Fred Almeida. We’re talking the future of medical tech, and why Fred thinks you’ll one day soon have an AI general practitioner that knows your history, and sends you out to specialists when you need human intervention and expertise. PLUS how Japan stays at the forefront of tech without being a manufacturing hub, and why so many Americans are willing to take pay cuts to enjoy the Tokyo lifestyle.

TWiST Partner Offers

• Circle: The easiest way to build a home for your community, events, and courses — all under your own brand. TWiST listeners get $1,000 off Circle’s Professional Plan by going to http://circle.so/twist.

• Gusto: Check out the online payroll and benefits experts with software built specifically for small business and startups. Try Gusto today and get three months FREE at Gusto.com/twist.

• Zite: Zite is the fastest way to build business software with AI. Build apps, forms, websites and portals that connect to the tools you already use. Go to zite.com/twist to get started.

SF Live-Work Space Now Available

Need a flexible living and working environment in San Francisco? This thoughtfully designed loft-style residence at 787 Bryant St., the heart of the vibrant SOMA district and the city’s creative hub, is now available for rent or purchase. Check the listing for more details.

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