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• Reddit bets on search: Social community service Reddit is investing heavily into becoming a “go-to search engine,” the company said during its earnings call. Shares of Reddit rallied after the former startup crushed earnings expectations. In the future, search could help drive more outperformance. Last year, Jason and Alex dug Reddit’s search efforts on the show. Since then, the value of human data in both search, and AI contexts has only become even more clear.

• OpenAI raised $8.3B: The New York Times reports that OpenAI raised a huge round from a host of private-market investors ahead of schedule. The massive investment included a $2.8 billion check from Dragoneer. With GPT-5 yet to arrive, what gave investors such confidence to oversubscribe the fundraising by a 5x multiple? And affix OpenAI with its much-ballyhooed $300 billion valuation? The answer is: Quickly scaling revenues, which may have reached a $13 billion annual run rate.

• Anthropic’s revenue rises: That OpenAI has soared from a $10 billion ARR metric to somewhere between $12 billion (according to The Information) and $13 billion (The Times) is impressive. But it’s selling into a hot market. Anthropic, an OpenAI rival, is working on raising a round at $170 billion (more than the $150 billion that was previously reported), and has seen its own revenues quickly scoot from $4 billion (run rate) to $5 billion. The two companies have a combined $18 billion worth of annualized revenue. Where do you reckon they will close the year?

TWiST500

Figma, a former TWiST500 company, priced its IPO above its raised range before trading. Then, retail investors got hold of its shares and went bonkers, pushing the value of the design unicorn to staggering heights.

Starting from $33 per share, Figma opened at $90 per share and traded as high as $124.63 before closing out its first day worth $115.50 per share for a gain of precisely 50%. Figma is up another few points today, though highs set in earlier trading have calmed down.

The supernova IPO performance of Figma does several things at once:

• Creates a huge pile of cash for VCs to return to LPs: As soon as their lockup period (six months) ends, that is.

• Derisks the IPO pathway: Circle’s IPO went vertical. CoreWeave did the same. Chime is holding steady. Figma is off to the moon. Why wouldn’t you want to go public?

• Reignites IPO pricing complaints: When an IPO is underpriced compared to the price that retail will pay after its debut, some investors complain that IPO pricing is too broken to be redeemed. There’s merit to the argument. But it’s a privilege to see the old arguments come back. An IPO did well enough to bring them back!

For VCs hungry to get other portfolio companies live, pop the champagne and then get started on those prospectuses. We’re waiting. — Alex

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This Week in Startups

E2158: It’s another all-star TWiST Investor Panel, featuring special guests Sophia Amoruso of TrustFund VC and Ryan Hoover of Weekend Fund (not to mention the best place to launch your new website, Product Hunt)! They’re going DEEP on the current landscape for startup investment, including discussions of durable vs. brittle revenue, various approaches to follow-on investments and recycling, and the crucial importance of hosting co-working events and jam sessions for founders. Don’t miss this one!

E2157: We’re breaking down some media stories, so Lon’s joining Jason and Alex to talk about Astronomer’s viral response to the Coldplay Canoodling meme (starring Gwyneth Paltrow!) and Sydney Sweeney’s extremely divisive American Eagle ad. (It’s not EXACTLY tech but there are some founder lessons here for sure!) Plus, Figma’s big IPO, everything that went wrong with the Tea app, and why Jason thinks app stores should ban “anonymous” forums.

E2156: Jason just got back from the big All-In AI Summit in DC, and he’s got a ton of behind-the-scenes anecdotes and observations to share. Hear about his immigration back-and-forth with VP JD Vance, his solar power debate with Energy Sec. Wright, Jensen Huang and Lisa Su’s thoughts on AI job displacement, and even getting a shoutout from POTUS himself. PLUS Alex and Jason have a little free trade vs. tariff tet-a-tet, and we’re answering YOUR top queries from Reddit.

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• Squarespace: Turn your idea into a beautiful website! Go to http://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.

• Lemon.io: Hire pre-vetted remote developers and get 15% off your first 4 weeks of developer time at https://Lemon.io/twist

• Public: You take investing seriously. Public does too. Build a multi-asset portfolio and earn an industry-leading 4.1% APY on your cash with no fees or minimums. Learn more at public.com/twist.

TWiST wants to hear from YOU!

Along with our partners at Perspective AI, we’ve created a new AI-powered survey inviting our listeners to give us their feedback on the show, and specifically what kinds of topics they want to hear about on future episodes. Please take a few minutes to chat with Perspective’s friendly AI agent and share your thoughts on our podcast! We’d love to hear from you.

Founder U is coming to the MENA region!

Our 12-week pre-accelerator—designed to help early-stage founders build and grow—kicks off this fall in Saudi Arabia. The first cohort launches in Riyadh on November 3rd, followed by in-person and virtual sessions throughout the program. Founders in MENA: this is your chance to turn your idea into a business and get world-class insights on building a successful startup. Apply today: https://mena.founder.university/

Want to Work for This Week in Startups?

We’re looking to fill two in-person sales positions at our Austin, Texas HQ! First, a high-performing Sales Executive to help us seek out and promote clients, sponsorships, branded content, and more. Plus an experienced Sales Manager to lead, coach, and scale our sales executive team, while setting performance goals. Love the podcast and have B2B sales experience? We want to hear from you!

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.

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