Who said fundraising takes time?

Top News

• Cloud infrastructure startup raises three funding rounds: Eon, founded by a team who previously sold their startup to Amazon, has emerged from stealth with a novel cloud infrastructure backup solution. They raised $127 million across three funding rounds and achieved a $750 million valuation. What’s even more impressive is that they only started operating eight months ago. The company, led by CEO Ofir Ehrlich, addresses the growing complexity of cloud backup needs, especially given the increasing size of data infrastructures and cybersecurity risks. With spending on infrastructure projected to reach $838 billion by 2034, we’re excited to see how much of the market Eon can get.

• Big investments are going into Malaysia: Google is hoping to tap into a “young tech-savvy population” by investing $2 billion in the construction of a new data center in Malaysia. Google announced that the investment could create 26,500 jobs and contribute over $3 billion to Malaysia’s economy by 2030. Prime Minister Anwar Ibrahim stated that investments of this nature can “position Malaysia as a hub for generative artificial intelligence.” As more tech giants pour capital into this region, expect to see more innovation coming out of Southeast Asia.

• Healthcare startup raises $47 million: Nym, an Israeli AI company, has automated the medical coding process in the US healthcare system, providing a faster and more cost-effective solution to traditional manual coding. With $47 million raised in a recent funding round, led by PSG and joined by Samsung Next, Google Ventures, and others, Nym hopes to reduce administrative burdens and healthcare costs, as well as help providers focus more on patient care. Another classic example of AI significantly reducing workloads.

The OpenAI to Anthropic Pipeline

Today, we have news from not one but two TWiST500 companies connected in the most unusual of ways. Durk Kingma, a lesser-known co-founder of OpenAI, announced that he's joining Anthropic. In his X post, Durk expressed his alignment with Anthropic’s safety-focused AI development approach, though he didn’t specify his new role.

Durk’s background includes foundational research at OpenAI, where he contributed to major AI advancements like DALL-E and ChatGPT, before transitioning to Google Brain and becoming an AI advisor. This recruitment can also be seen as an OpenAI reunion of sorts, following recent hires from OpenAI’s former safety lead, Jan Leike, in May, and another OpenAI co-founder, John Schulman, in August. It’s also interesting to note that Anthropic’s CEO was, at one point, VP of research at OpenAI.

Anthropic is often viewed as an alternative to GPT, and while OpenAI has the larger revenue, both companies have experienced rapid growth. Given the caliber of its employees, it's no surprise that the AI giants have achieved such remarkable success.

— Erika

A message from DevSquad

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This Week in Startups

E2017: Jason and Alex begin by discussing the AI regulation bill SB 1047 and its potential impact on the industry, followed by a broader look at AI regulation in California and industry leaders' reactions to the bill's veto. They also explore the concurrent technological supercycles, including AI, self-driving cars, and fusion, before moving into topics like startup success, OpenAI's valuation, and the future of AR/VR technologies.

E2016: David Ding of Udio joins Alex to discuss Udio's inception, AI-driven music generation, and advancements in its AI models. David highlights Udio's target audience, future DAW integrations, and financial strategies, including GPU efficiency. They dig into insights on Udio's user interface, community engagement, and growth roadmap.

E2015: At LIQUIDITY Summit 2024, Phil Deutch discussed the growing energy demands of data centers, challenges in U.S. electricity transmission, and investment opportunities in sustainable energy. He covered innovations like AI, nuclear power, and solar, while addressing consumer awareness and the impact of AI and EV adoption.

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Founder University

Applications are open for Founder University Cohort 9, a 12-week remote pre-accelerator program tailored towards navigating early-startup practices, building an MVP, and growing traction. Submit your application at Founder University — Cohort 9 begins on October 25th!

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