Toyota makes its first move in space exploration

Top News

• Toyota hints at a future in space exploration: At CES 2025, Toyota chairman Akio Toyoda announced the automaker’s collaboration with Interstellar Technologies to explore rocket technology, signaling ambitions beyond Earth. While surprising to some, this bold move aligns with Toyota’s “invention by multiplication” strategy and positions the company as a contender in the growing space-tech race, rivaling Elon Musk’s Tesla-SpaceX connection. Toyota’s pivot to space exploration could redefine its legacy, moving from roadways to galaxies in a bold leap of innovation.

• ChatGPT Pro plan losing money: Sam Altman revealed that the $200/month ChatGPT Pro plan is costing more than it earns, thanks to heavy user demand. “I personally chose the price,” Altman shared on X, noting the lack of a rigorous pricing study—a theme for OpenAI, which also set the $20 premium plan price based on user sentiment. With $5 billion in losses projected last year, OpenAI is eyeing changes, including usage-based pricing, to attract fresh investments during a corporate restructuring. Despite challenges, the company remains optimistic, forecasting $11.6 billion in revenue for 2025 and aiming for $100 billion by 2029.

• Washington Sues T-Mobile over 2021 Data Breach: The state of Washington is suing T-Mobile for allegedly failing to address known cybersecurity flaws that led to a 2021 data breach affecting over 79 million customers. With claims of weak defenses, misleading public statements, and poor customer notification, this lawsuit could signal heightened scrutiny for companies with repeated security lapses. T-Mobile's repeated security failures highlight the urgent need for stronger accountability in protecting customer data.

TWiST500

We’re accelerating the TWiST500 initiative, and today, I’m excited to discuss three fast-emerging companies:

• Mistral AI: Mistral AI is a Paris-based artificial intelligence startup specializing in open-source and commercial large language models (LLMs). Like the state-of-the-art Mistral 7B and Mixtral series, their models utilize innovative architectures to deliver high performance with lower computational costs. Mistral has secured €105 million in seed funding and is paving the way for responsible, accessible AI solutions.

• EquityZen: EquityZen is transforming the private equity market by connecting investors to pre-IPO tech companies. Their platform enables employees and shareholders to unlock liquidity while offering investors access to high-growth startups that were once out of reach. With over 400 transactions completed, EquityZen is reshaping how private equity flows in today’s market.

• Chainguard: Chainguard is redefining software supply chain security by creating secure, trusted images and tools for developers. Their solutions, like Chainguard Enforce and Wolfi (a minimal, secure Linux distribution), help companies build, deploy, and manage secure software with confidence. As cyber threats grow, Chainguard’s mission to “make the software supply chain secure by default” couldn’t be more timely.

Know a startup that deserves a spot on the list? Send it my way: [email protected] 
— Rajsitee

A message from Gusto

Gusto. Gusto is easy online payroll, benefits, and HR built for modern small businesses. Get three months free when you run your first payroll at ⁠https://www.gusto.com/twist

This Week in Startups

E2068: Jason and Alex kick off the episode with TWiST’s new interactive “live docket” experiment and dive into the Vail Resorts Epic Pass controversy, critiquing its management and stock performance. They explore Sam Altman’s insights on fusion energy, U.S. innovation, and rural business subsidies. The conversation shifts to cybersecurity concerns over Chinese hacking and China’s economic struggles, emphasizing domestic production. The episode wraps with a thoughtful discussion on handling online criticism and tips on security for public figures in a less empathetic online world.

E2067: Jason and Alex start the year by reflecting on mindfulness, family moments, and Instacart’s funding rounds. Jason highlights his renewed focus on early-stage investing and Founder University. They dive into venture capital trends, including the concentration of fundraising and its impact on seed rounds, as well as challenges and solutions for H1B visa reform. The episode wraps with predictions for startup failures by 2025, potential mergers in the autonomous and on-demand sectors, and updates on opportunities for founders through Founder University.

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.

TWiST Partner Offers

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

• PrizePicks: Run your game. THE BEST place to get real money action while watching your favorite sports! Download the app today and use code TWIST to get $50 instantly after you play your first $5 lineup! Go to: https://prizepicks.onelink.me/LME0/TWIST

• Vanta: Compliance and security shouldn't be a deal-breaker for startups to win new business. Vanta makes it easy for companies to get a SOC 2 report fast. TWiST listeners can get $1,000 off for a limited time at https://www.vanta.com/twist

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/.

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