The New York Times starts another battle with AI

Top News

• The New York Times wants to stop Perplexity: The New York Times has issued a cease-and-desist letter to AI startup Perplexity, accusing it of using its content without permission. This move follows the Times' ongoing legal battle with OpenAI and highlights the growing tension between media companies and AI firms over copyright and content usage. As AI-generated search results become more common, publishers are concerned about losing traffic and revenue, prompting them to take action to protect their rights.

• AI evaluation startup raises a Series B: Galileo, an AI evaluation startup founded by ex-Google colleagues, just raised a $45 million Series B funding round, bringing its total investment to $68 million. Led by CEO Vikram Chatterji, Galileo helps companies like HP, Comcast, and Twilio test their AI tools to prevent issues like hallucinations and data leaks—key hurdles in fully embracing AI. With a suite of products and their own language model called Luna, they're on a mission to make AI deployment smoother and safer for businesses.

• Wolfspeed raises big bucks from the government: The EV chip maker is set to receive $750 million in U.S. government grants from the 2022 Chips and Science Act, plus an additional $750 million in financing led by Apollo Global Management, to support its $6 billion expansion of silicon carbide wafer manufacturing facilities in North Carolina and New York. The funding is set to boost domestic semiconductor production, create thousands of jobs, and help Wolfspeed meet growing demand for energy-efficient chips used in electric vehicles. Following the announcement, Wolfspeed's shares surged over 30%, reflecting renewed investor confidence after a significant decline this year.

TWiST500

By now, you (along with everyone else in the modern world) are aware of the impact OpenAI’s ChatGPT has had on both companies and everyday life. Its release kickstarted a global obsession with AI to the point where it’s difficult to find a startup that isn’t AI-related. But just how much impact has OpenAI had on certain industries? To the US Department of Defense, that impact is worth roughly $670 million.

Since ChatGPT’s release, the DoD has awarded over $670 million in contracts to 323 companies. This marks a 20% increase in AI-related spending as the Department of Defense and Department of Homeland Security push to develop and test new AI tools. The Pentagon even partnered with OpenAI earlier this year after lifting its ban on providing AI to the military. Major contracts have been awarded to companies like Palantir and Scale AI, with projects ranging from algorithm development to AI-enhanced defense systems. As AI continues to grow in importance, both agencies are investing heavily to harness its potential across defense and security operations.

— Erika

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This Week in Startups

E2025: Jason and Alex begin the show by discussing Tesla’s Robotaxi event and the potential impact of Tesla’s bus platform on transportation. They also demo ChatGPT 4 with Canvas and make predictions on the future of self-driving cars. Later, Lightship RV co-founders join to talk about their company's market strategy, unique selling points, and competition. Then, Voatz CEO discusses their blockchain voting system and election security concerns.

E2024: Alex breaks down the TWiST500 by covering topics like AI development tools (Qodo, Poolside), AI infrastructure (CoreWeave), and AI data management (Tollbit, Scale). He also covers robotics (Figure, Dusty Robotics), fintech (Circle, Altruist), cybersecurity (Huntress, Wiz), and crypto (Farcaster). We end with a special announcement that Angel University is set to start on November 6th.

Startup Finance Basics: Scott Orn, Kruze COO, and Jason go through the distinct characteristics of the current AI boom, emphasizing differences in revenue, costs, and growth rates between AI startups and traditional SaaS. They highlight how AI tools are improving productivity and labor efficiency, while also noting the unique accounting and operational challenges AI startups face.

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