Substack Bets $20M on a Creator Campaign

Top News

• Subaru security concerns: Hackers have discovered a method to remotely unlock, start, and track millions of Subaru vehicles by exploiting vulnerabilities in the car's remote access system. This security flaw allows bad actors to gain control over various vehicle functions, raising questions about the privacy of cars utilizing connected technology. Although Subaru is under scrutiny, this incident could serve as a wake-up call for the entire automotive industry, potentially exposing similar vulnerabilities in manufacturers like Honda, Kia, and Toyota.

• OpenAI debuts agentic AI: OpenAI has unveiled "Operator," an AI agent capable of autonomously performing tasks on the web, such as booking trips and purchasing groceries. Currently available to ChatGPT Pro users in the U.S., Operator interacts with websites as a human would—by typing, clicking, and scrolling—streamlining repetitive or time-consuming activities. Users retain control over sensitive actions, such as purchases, as the system is designed to request approval before executing these tasks. This feature marks a huge step toward making agentic AI more accessible to mainstream users.

• Trump signs an Executive Order on AI Integrity: In his first week back in the Oval Office, newly inaugurated President Trump wasted no time signing an executive order to push AI innovation forward in the United States. This order revokes policies established under former President Biden, which Trump claims have hindered American AI development by imposing unnecessary burdens on companies. The new directive emphasizes the need for AI systems that are free from ideological bias and engineered social agendas, aiming to maintain the U.S.'s global leadership in AI technology.

TWiST500

Today, we’re spotlighting a TWiST 500 company, Substack, which has raised eyebrows with its capital-intensive strategy to cement itself as a leader in the content creation space. Substack announced today that it’s rolling out a $20 million "creator accelerator fund" to lure content creators, especially those from TikTok, to its platform.

This fund is open to any U.S.-based creator earning at least $2K in monthly recurring revenue and offers a compelling deal: Substack will match 100% of the creator's current revenue for the first year. The catch? Creators must make all their paid subscription content exclusive to Substack.

Substack’s business model—taking 10% of a newsletter's revenue instead of charging a flat subscription fee—has been criticized by creators in the past. This new $20 million fund seems like an attempt to address that pushback by offering creators revenue guarantees, personalized support, and early access to new tools. The timing is undoubtedly strategic, as many creators are now scrambling to find stable platforms amid the recent upheaval in the content creation space.

This accelerator also conveniently comes at a time when Substack is working to shed its image as just another newsletter publisher, marked by the genesis of features like live video. These efforts signal Substack’s ambition to evolve into a full-fledged creator hub, attracting a broader audience and expanding its influence in the content space.

Will this move catapult Substack into becoming the next big thing in the creator world? Substack is clearly betting on solidifying its dominance by offering creators revenue guarantees, but only time will tell if the gamble pays off. — Corinne

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