The US is losing the open-model race

Top News

• The EU backs down on privacy threat: Concerns that the EU would dramatically erode individual privacy rights in pursuit of cracking down on CSAM have been alleviated thanks to the Union agreeing to “draft online child protection legislation without forcing global tech companies to identify and remove” offending material, according to Reuters. While no one supports CSAM, prior versions of the push would have required tech companies to break user encryption, which inflamed industry and user criticism.

• Chinese open models lead: Call it confirmation of what we already suspected, but Chinese AI labs’ open-weight projects are now leading American efforts, per an MIT study of Hugging Face data. In the past year, 15.8% of open model downloads from Hugging Face were US models, while approximately 17% were Chinese. More importantly, the trend is accelerating, with American open models seeing flat market share while their Chinese rivals continue to gain.

• Uber goes fully driverless in Abu Dhabi: Uber and WeRide are now offering fully autonomous rides in Abu Dhabi, initially constrained to the small Yas Island location. It’s a small start, but enough pebbles eventually become a landslide. As self-driving technology becomes increasingly common in select regions of China and the United States, MENA nations are also embracing it. Quickly. (And it appears that the economics of self-driving are improving rapidly, which we’re sure Waymo and Tesla shareholders appreciate.)

TWiST 500

A reminder that this newsletter is off tomorrow, a day of feasting and family here in the United States. But that doesn’t mean we can’t give thanks before we go, and I’d like to nod in Anthropic’s direction for unintentionally setting up one hell of a Congressional hearing.

It’s natural that the largest, most valuable companies on the TWiST500 wind up before Congress; doing so means that your startup has graduated from obscurity and into something fit for debate in the halls of power. (Not that anyone enjoys going before Congress, of course.)

What’s going on? A few weeks back, Anthropic told the world that it had disrupted “the first reported AI-orchestrated cyber espionage campaign,” which had used its Claude Code tool into “attempting infiltration into roughly thirty global targets and succeeded in a small number of cases.”

The released study was a thunderclap, with some in the industry pushing back on Anthropic’s claims, arguing that AI just isn’t good enough yet to do what Anthropic said its technology was cajoled into doing. Now we get to find out! With Anthropic CEO Dario Amodei under oath, we have a chance at learning a hell of a lot more.

Go check out the first full iteration of the TWiST500! Ok, now it’s time to eat. — Alex

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This Week in Startups

E2215: Alex chats with Neubird CEO Gou Rao about the intricate complexity of IT Ops, and the vast amount of layers and components that have to be delivered very quickly to your phone in order to stream a simple video clip. Then Subject AI CEO Michael Vilardo stops by to tell us how the app uses gamification to keep kids learning and engaged. Finally, we’re flashing back to a remarkably prescient 2019 interview with then-Scale AI chief Alexandr Wang, who tells us why he thinks the AI Doomsday scenarios — AND the elaborate AGI promises — are both way overblown.

E2214: The team from Familify had released a well-reviewed storytelling app for kids and parents… but it just wasn’t growing! Then they noticed that Bible stories and faith-based content were particularly popular. So, they decided to release a brand-new app, Theo, specifically designed for these types of lessons and stories. And the new product overtook Storybook in just a few weeks! PLUS, we’re chatting with Collin from En Vérité about how AI can make due diligence much less painful for investors AND checking out our latest Gamma Pitch Deck competitor. Find out why Jason says Jake Triton from Pitch Prfct might just be closing in on Product Market Fit.

E2213: Google and Meta had their cases dismissed (or received a slap on the wrist)… Despite all the backlash and cynicism, AI companies continue making bank and releasing hot new products… What does it all mean? For Jason Calacanis, the signs are pointing to a “major M&A moment,” with huge opportunities for increased efficiency and consolidation among America’s favorite brands and largest companies?

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Founder University is headed to Tokyo!

Applications are now open for the 2026 cohort. Selected startups will take part in a global, three-part experience designed to accelerate growth and expand international reach:

• Tokyo Bootcamp: January 12–16

• Online Acceleration Program: January 19–March 6

• U.S. Travel Program: March 9–20

If you’re building something big and ready to go global, this is your moment. Apply now at launch.co/tokyo.

Investor Networking Lunch in SF

Jason and LAUNCH are hosting an investor networking lunch, followed by pitches from our latest Accelerator batch. We'd love for you to join us for Dim Sum in San Francisco on Friday, December 5th. (Or forward this to your investor friends.)

• Date/Time: Friday, December 5th, 2025 at 12-3PM PT

• Format: Dim sum lunch, followed by founder pitches & investor networking

• Location: TBA (Chinatown area)

Spots are limited, please RSVP here. The LAUNCH team will email you confirmation once your registration is accepted. You must be an accredited investor or work for a VC Fund to join.

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.

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