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Top News

• Inside the Coinbase hack: The largest crypto exchange in the US anticipates that it will lose between $180-$400 million following a recent cyberattack, which obtained the names, addresses, and email addresses of a small subset of customers (but thankfully not their login info or passwords). Customers who were tricked into sending funds to the attackers will reportedly get refunds. Bloomberg suggests the hackers got access to Coinbase’s customer data by bribing customer service representatives within the company. Oh no!

• YouTube Shorts are big business: During a pitch to advertisers in New York this week, YouTube CEO Neal Mohan announced a milestone for the platform’s “Shorts” feature. The TikTok-esque short-form clips now brings in revenue roughly equivalent to the main YouTube platform in many countries, including the US. In many regions, Shorts monetization already exceeds YouTube proper. Endless scrolling FTW.

• OpenAI reveals safety test results: If you’re personally concerned about impending robot uprising, maybe this will help you feel more centered. ChatGPT maker OpenAI published the results of an internal safety evaluation of its AI models, as part of an overall effort to increase transparency. Their newly-unveiled “Safety Evaluations Hub” will inform the public about how OpenAI’s models do on tests evaluating issues like hallucinations, “jailbreaks,” and overall generation of “harmful” content. OpenAI plans to update the hub regularly with fresh results.

TWiST500

Founders, designers, coders, students, and the public at large are steadily adding AI tools to their workflows to increase productivity (or cheat on their exams, either way). Nonetheless, AI use and revenue remain stubbornly tricky to prognosticate from several years out.

Take the case of TWiST 500 entrants Cohere. The Canadian tech startup and OpenAI rival focuses on AI applications for enterprises, particularly large language models. The company was formed in 2019 by a crew of ex-Google Brain researchers, and announced a promising early collaboration with Google Cloud.

A $500 million Series D round last year — bringing Cohere close to $1 billion in total overall investment — raised their valuation up to $5.5 billion.

And yet… The Information reports that, as of February 2025, licensing fees on Cohere’s various AI models are generating just $70 million in annual revenue, or about $6 million a month.

That’s far short of the company’s 2023 estimates. Back then, the company told investors it planned to generate around $450 million from its AI models in 2024, on the way to $5.6 BILLION in 2027.

For now, AI is frothy enough that Cohere may be able to continue raising more money and extending its runway, in the hopes that its AI models can eventually find an audience. But some investors may already be losing faith. According to The Information, the Tiger Global Management tech fund has already sold off $50 million of its $62.7 million total Cohere stake on secondary markets, even as the valuation was still going up. – Lon

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This Week in Startups

E2126: Podcast giant and Florida transplant Dave Rubin is Jason’s special guest on a politics and media-heavy edition of TWiST. Plus Jason and Alex talk the Chime IPO, Databricks major bet on agentic AI, startups offering Postgres as a service, and more.

E2125: On a special Tuesday TWiST, Alex chats with founders from two cutting edge frontier technologies reshaping our world. First up, ZioSec hopes to improve cybersecurity by putting AI agents on the case. Then, hear about how Terabase wants to use mobile robotic factories to transform how we build and maintain our solar power infrastructure.

E2124: Jason, Lon, and Alex examine Perplexity’s WILD $14 billion valuation and openly wonder why they need MORE funding. Plus, does Y Combinator REALLY think Google should be broken up, and if so, why don’t they stick to their guns? All that and the guys chat with Streamfog’s Kevin Bondzio about the promise of AR-powered podcast ads.

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• Squarespace: Turn your idea into a new website! Go to https://www.Squarespace.com/TWIST for a free trial. When you’re ready to launch, use offer code TWIST to save 10% off your first purchase of a website or domain.

• Northwest Registered Agent: Starting your business should be simple. With Northwest Registered Agent, you can form your entire business identity in just 10 clicks and 10 minutes. From LLCs to trademarks, domains to custom websites, they’ve got you covered. Get more privacy, more options, and more done—visit https://www.northwestregisteredagent.com/twist today!

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

Want to Work for This Week in Startups?

We’re looking to fill two in-person sales positions at our Austin, Texas HQ! First, a high-performing Sales Executive to help us seek out and promote clients, sponsorships, branded content, and more. Plus an experienced Sales Manager to lead, coach, and scale our sales executive team, while setting performance goals. Love the podcast and have B2B sales experience? We want to hear from you!

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.

Founder University

Applications are open for Founder University Cohort 11, 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 10 will kick off Summer 2025!

LAUNCH Accelerator

Are you a pre-Series A founder with a product in the market? Applications are now open for LAUNCH Accelerator's 35th cohort—starting Summer 2025—where you'll perfect your pitch, grow your business, and connect with top Silicon Valley investors. Apply here and take your startup to the next level!

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