Quantum computing startups benefit from newfound enthusiasm

Top News

• Google, SoftBank back quantum startup QuEra: Alphabet Inc. and SoftBank’s Vision Fund led a $230 million funding round for Boston-based QuEra. The company is working on methods for making quantum computing more practical and realizable. $60 million of the funds will be released if/when the company hits some pre-determined technical milestones. Interest in quantum computing and so-called “supercomputing” has increased significantly following a recent Google demonstration: their quantum computer completed an extremely complex math problem, which would take conventional computers 10 septillion years to solve, in just five minutes.

• BBC: AI chatbots poor at summarizing news: New research carried out by the BBC suggests that several leading AI chatbots produced “significant inaccuracies” and distortions when tasked with summarizing current events and news stories. The survey included OpenAI’s ChatGPT, Microsoft’s Copilot, Google’s Gemini, and a model from Perplexity AI. 51% of all the AI outputs were deemed by BBC researchers to have significant problems; 19% had objective factual errors, such as incorrect dates or numbers. In a blog post summarizing their findings, the CEO of BBC News and Current Affairs, Deborah Turness, said that AI promised “endless opportunities” but cautioned that the companies releasing these models are “playing with fire.”

• Apple partners with Alibaba on China AI projects: The Information reported on Tuesday that Apple will team with Alibaba on AI features for its devices in China. Apple had previously planned to team with Baidu on Chinese AI features but felt that their progress to date was falling short; the company had also considered models developed by Tencent, ByteDate, and Deepseek. Apple stock jumped 1.5% following the announcement, while Alibaba shares climbed 2.6%.

TWiST500

Hey, everyone, I’m Lon, a new member of the TWiST team who’s going to be pitching in and helping Alex and Maddie with the show. Here are some of the stories we’re tracking today:

• ScorePlay: This New York-based sports startup — a newcomer to the TWiST500 this week — streamlines a process about which most of us remain blissfully unaware. Clips and highlights from sporting events and big games just seem to find their way onto our screens after a certain point, but the process of how they get there is both labyrinthine and time-consuming. ScorePlay uses automated AI-powered tools (like facial recognition and adding meta-data) to help leagues and teams get photos and clips from big events in front of more fans, more quickly and efficiently. The company already works with a number of major international leagues, from the NBA and WNBA to Spanish soccer division La Liga; it hopes to add the NFL to its client list in the near future. They just closed a $13M Series A with help from Reddit founder Alexis Ohanian’s Seven Seven Six and others.

• Island Technology: The software and security startup is currently fundraising at a $4.5 billion valuation, according to Bloomberg, with investment firm Coatue Management leading the way. The company develops secure internet browsers tailored specifically for enterprises; clients include small businesses, retailers, hotel chains, etc. Island’s last round closed in early 2024 at a $3 billion valuation; that one was led by Sequoia, Insight Partners, and the Israeli firm Cyberstarts. It’s headquartered in Dallas and Tel Aviv. —Lon

A message from 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 https://w⁠⁠⁠⁠ww.oracle.com/twist⁠⁠⁠

This Week in Startups

E2082: Jason and Alex break down Trump’s latest move against the carried interest tax loophole—could this shake up venture capital? Then, Orbit Fab CEO Daniel Faber joins to discuss how his company is building “gas stations in space” to refuel satellites and enable the industrialization of space. Plus, Deel’s massive $300M secondary sale, the CapBase acquisition, and big shifts in the European AI and energy sectors

E2081: Jason and Alex break down Palantir's valuation, financial performance, and stock analysis. They dig into how Temu and Shein are taking advantage of a trade loophole and what it means for e-commerce. Then, Uber’s latest earnings lead to a discussion on the future of self-driving, with Waymo and BYD making big moves. They wrap up with a look at prediction markets, regulatory hurdles, and the shifting competitive landscape in tech.

E2080: Jason and Alex dive into the AI arms race, break down Lovable.dev’s insane growth to $10M ARR in weeks, and test whether AI can really replace software engineers. Plus, they analyze Trump’s latest tariff chaos and what it means for startups, global trade, and the economy.

TWiST Partner Offers

• 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.

• Atlassian: From MVP to IPO, Atlassian for Startups provides your team the right tools to plan, track and collaborate on work. Head to Atlassian.com/Startups/TWiST to see if you qualify for 50 free seats for 12 months.

• AdQuick: If most of your advertising dollars are going to digital ads, it’s time to diversify! Out-of-home advertising, like billboards, offers low cost, high value reach. AdQuick makes it easy to plan, buy and measure all in one place. Visit adquick.com/twist and mention TWIST to get $1000 off your first campaign.

Founder University

Applications are open for Founder University Cohort 10, 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 10 will kick off Spring 2025!

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