The AI buildout is not slowing down

Top News

• Microsoft to spend $80B on AI buildout: According to its President Brad Smith, Microsoft is “invest approximately $80 billion to build out AI-enabled data centers to train AI models and deploy AI and cloud-based applications” in its fiscal 2025, which will include half of the new calendar year. As part of a blog post designed to engender good relations with the incoming Federal administration, the number is present to impress. And it does, marketing aside. Expect other tech giants to follow suit.

• Texas AI bill underscores regulatory hunger: After California’s contentious AI bill was vetoed in 2024, most in the tech industry turned their eyes to Federal AI regulations as either their conduit for change or beast to beat back. But a recent investigation into an AI bill brewing in Texas is a good reminder that the appetite to regulate AI is at once not merely a Californian or even Democratic goal. Lots of folks want to get busy with their authority to shape AI’s future — at least in their own state.

• Turo works to keep its name clean: Turo, a venture-backed company that has spent years on the precipice of an IPO, was thrust into the spotlight after several of its rentals were used in violent attacks in the first days of 2025. Turo says that the two individuals had clean criminal records and valid driving licensure. Put another way, they looked darned normal before their actions became both illegal and evil. The impact the tragedy will have on P2P marketplaces is not clear, but we expect a renewed focus on trust and safety this year as all pertinent companies review their own policies and potential liabilities.

TWiST500

Stablecoins. They’re a long-time interest of mine, not only because Circle — the company behind the USDC stablecoin — should go public this year, and we had its CEO on the show last year, but also because they represent a way to free regular folks from their local currency; if you are born into a nation with a rapidly depreciating currency, that random quirk of your birth could pose an impediment to your economic potential.

Stablecoins can offer a pathway for quick, low-cost payment settlement and a vector for normies to get dollars when they otherwise might not be able to. So, they are neat technology and a potential emancipator.

That’s why we’re adding Stably to the TWiST500. It offers a “Stablecoin-as-a-Service” product that allows customers to build their own stablecoins. In the future, I doubt we’ll see merely Tether and USDC owning the dollar-pegged stablecoin market; I expect every bank and even medium-scale fintech to have their own. Someone will build technology to bridge between them, of course, but a startup building a stablecoin-building tool is precisely up our alley.

And as a small programming note, we’ve had a small issue with our Coda database that we’re sorting out. To make a long story short, some recent additions to the list are disappearing. So, we’re chasing that down before we add the next 50-75 member companies. Soon. — Alex

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This Week in Startups

E2066: Jason and Alex recap the year with the TWiSTY Awards 2024, celebrating standout startups, leaders, and moments from the year. Highlights included Breakout Startup of the Year, Pre-IPO Startup of the Year, and Main Character of the Year, along with debates on News Topic and Tech Product of the Year. The episode wrapped with Funniest Moment and Episode of the Year, showcasing the best of TWiST in 2024.

E2065: Jason and Alex dive into a discussion about approaches to population growth, Palantir's valuation and role in defense tech, and market trends like meme stocks. They dive into topics such as Michael Saylor's Bitcoin strategy, US geopolitical strategies, and government hires in emerging tech and AI policy advisory. The episode wraps with discussions on modernizing securities laws and Emil Michael's appointment in research and engineering.

E2064: Jason and Alex introduce the episode with Varun Mohan of Codium, exploring AI's role in IDE development, challenges in building 10x better experiences, and the future of no-code tools. They discuss AI's impact on developer jobs, salaries, and remote work, featuring insights from Satya Nadella on SaaS and AI agents. The episode wraps up with hiring strategies, hyper-competition in AI, VC expectations, and audience Q&A.

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LAUNCH Cloud Kitchens Incubator

Applications are open for Cohort 2 of the LAUNCH CloudKitchens Incubator (LiCK). We're looking for food entrepreneurs who wish to expand into the ghost kitchen space or tech founders with a team and a great idea. The application and more information can be found at https://ck.launch.co/.

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