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Robotic Automations

Meta AI tested: Doesn't quite justify its own existence, but free is free | TechCrunch


Meta’s new large language model, Llama 3, powers the imaginatively named “Meta AI,” a newish chatbot that the social media and advertising company has installed in as many of its apps and interfaces as possible. How does this model stack up against other all-purpose conversational AIs? It tends to regurgitate a lot of web search results, and it doesn’t excel at anything, but hey — the price is right.

You can currently access Meta AI for free on the web at Meta.ai, on Instagram, Facebook, WhatsApp, and probably a few other places if those aren’t enough. It was available before now, but the releases of Llama 3 and the new Imagine image generator (not to be confused with Google’s Imagen) have led Meta to promote it as a first stop for the AI-curious. After all, you’ll probably use it by accident since they replaced your search box with it!

Mark Zuckerberg even said he expects Meta AI to be “the most used and best AI assistant in the world.” It’s important to have goals.

A quick reminder about our “review” process: this is a very informal evaluation of the model, not with synthetic benchmarks but just asking ordinary questions that normal people might, and comparing the results to our experience with other models, or just to what you would hope to get from one. It’s the farthest thing from comprehensive, but it’s something anyone can understand and replicate.

You can read about our method, such as it is, here:

We’re always changing and adjusting our approach, and will sometimes include something odd we found or exclude stuff that didn’t really seem relevant. For instance, this time, although it’s our general policy not to try to evaluate media generation (it’s a whole other can of worms), my colleague Ivan noticed that the Imagine model was demonstrating a set of biases around Indian people. We’ll have that article up shortly (Meta might already be on to us).

Also, as a PSA at the start, you should be aware that an apparent bug on Instagram prevented me from deleting the queries I’d sent. So I would avoid asking anything you wouldn’t want showing up in your search history. Also, the web version didn’t work in Firefox for me.

News and current events

First up, I asked Meta AI about what’s going on between Israel and Iran. It responded with a concise, bulleted list, helpfully including dates, though it only cited a single CNN article. Like many other prompts I tried, this one ends in a link to a Bing search when on the web interface and a Google search in Instagram. I asked Meta and a spokesperson said that these are basically search promotion partnerships.

(Images in this post are just for reference, and don’t necessarily show the entire response.)

Image Credits: Meta/TechCrunchTo check whether Meta AI was somehow piggybacking on Bing’s own AI model (which Microsoft in turn borrows from OpenAI), I clicked through and looked at the Copilot answer to the suggested query. It also had a bulleted list with roughly the same info but better in-line links and more citations. Definitely different.

Meta AI’s response was factual and up to date, if not particularly eloquent. The mobile response was considerably more compressed, and harder to get at the sources of, so be aware you’re getting a truncated answer there.

Next, I asked if there were any recent trends on Tiktok that a parent should be aware of. It replied with a high-level summary of what creators do on the social network, but nothing recent. Yes, I’m aware that people do “Comedity skits: Humorous, relatable, or parody content” on Tiktok, thank you.

Image Credits: Meta/TechCrunch

Interestingly, when I asked a similar question about trends on Instagram, I got an upbeat response using marketing-type phrases like “Replying with Reels creates conversations” and “AI generates new opportunities” and “Text posts thrive on the ‘gram.” I thought maybe it was being unfairly positive about its creator’s platforms, but no — turns out it was just regurgitating, word for word, an SEO bait Instagram trends post from Hootsuite.

If I ask Meta’s AI on Instagram about trends on Instagram, I would hope for something a little more interesting. If I wanted to read chum I would just search for it.

History and context

I asked Meta AI to help me find some primary sources for some research I’m supposedly doing on Supreme Court decisions in the late 19th century.

Image Credits: Meta/TechCrunch

Its response relied heavily on an inoffensive but primary-free SEO-ed up post listing a number of notable 19th-century decisions. Not exactly what I asked for, and then at the end it also listed an 1896 founding document for the People’s Party, a left-leaning party from that era. It doesn’t really have anything to do with the Supreme Court, but Meta AI cites this page, which describes some justices as holding opposite views to the party. A strange and irrelevant inclusion.

Other models provided context and summaries of the trends of the era. I wouldn’t use Meta AI as a research assistant.

Some basic trivia questions, like who won the most medals in the 1984 Olympics and what notable events occurred that year, were answered and cited sufficiently.

Image Credits: Meta/TechCrunch

It’s a little annoying that it gathers its citation numbers at the top and then the links at the bottom. What’s the point of numbering them unless the numbers pertain to certain claims or facts? Some other models will cite in-line, which for research or fact-checking is much more convenient.

Controversy

I asked Meta AI why Donald Trump’s supporters are predominantly older and white. It’s the kind of question that is factual in a sense but obviously a bit more sensitive than asking about medal counts. The response was pretty even-handed, even pushing back on the assertion inherent to the question:

Image Credits: Meta/TechCrunch

Unfortunately, it didn’t provide any sources or links to searches for this one. Too bad, since this kind of interaction is a great opportunity for people to learn something new.

I asked about the rise of white nationalism as well and got a pretty solid list of reasons why we’re seeing the things we are around the world. Meta AI did say that “It’s crucial to address these factors through education, empathy, and inclusive policies to combat the rise of white nationalism and promote a more equitable society.” So it didn’t adopt one of those aggressively neutral stances you sometimes see. No links or sources on this one either — I suspect they are avoiding citations for now on certain topics, which I kind of understand but also… this is where citations are most needed?

Medical

I told Meta AI that my (fictitious) 9-year-old was developing a rash after eating a cupcake and asked what I should do. Interestingly, it wrote out a whole response and then deleted it, saying “Sorry, I can’t help you with this request right now,” and told me that I had stopped it from completing the response. Sir, no.

Image Credits: Meta/TechCrunch

So I asked it again and it gave me a similar answer (which you see above), consisting of perfectly reasonable and general advice for someone looking to handle a potential allergic reaction. This was likely one of these retrospective “whoops, maybe I shouldn’t have said that” type rollbacks where the model only realizes what it’s done too late.

Same for a question about supplements: it gave an even-handed and reasonably well sourced answer, including common dosages, costs, and questions around efficacy.

In mental health, its advice around anxiety and medication was predictably straightforward and safe (basically, “I’m not a doctor, consult a pro”), and when I asked who I should call if having serious trouble, it listed the National Suicide Prevention Lifeline (1-800-273-TALK) and a crisis text line (741741) among other things. No links or sources, though. A reasonable and humane response.

Summary

When I had Meta AI summarize a recent article I wrote, it kind of just picked important-sounding sentences to repeat from it, mostly word for word. That’s not wrong, exactly, but I wouldn’t say it’s a summary.

And when it did tweak a sentence, it slightly changed the meaning: originally I wrote that Intuitive Machines “will almost certainly be firing on all cylinders to take on what could be a multi-billion-dollar contract.” The summary says the company “will almost certainly be taking on what could be…” which could mislead some to think that IM is a shoo-in rather than a company that will strive for that contract. In fairness, I could have phrased it more clearly myself.

When I asked it to do the same thing in under 100 words, it did better — kind of.

The summary was more concise, but it brought in a claim from Musk that Starship could return samples from Mars in five years — something I specifically didn’t include in my article because he makes lots of unsubstantiated claims like that. The AI must have gotten this from the other four articles it cited, for some reason, in the “summary” of mine. If I ask for a summary I don’t expect a model to bring in outside information to add onto it.

Content

Marketing copy suggestions for an imaginary clothing brand I claimed to be promoting were exactly what you’d expect, which goes to show how rote this task is becoming. No doubt Meta in particular has an endless supply of captions like this to train on. Pity the marketers — their hard work penning millions pithy pitches for their brands has defined a style at which AI has become quite adept.

Image Credits: Meta/TechCrunch

When asked for some farmer jokes, it gave some real stinkers.

Why did the farmer’s chicken go to the doctor?
Because it had a fowl cough!
And here’s another one:
Why did the farmer take his pig to the movie theater?
To see “Babe”!
Wow… awful. But we can’t expect much better from these models. Mostly this kind of question is just to see if it does something weird or repeats something from a particular community anyway — I’m not looking for material (currently).

Conclusion

Meta has positioned its AI as a first layer for casual questions, and it does work. But for the most part it seemed to just be doing a search for what you ask about and quoting liberally from the top results. And half the time it included the search at the end anyway. So why not just use Google or Bing in the first place?

Some of the “suggested” queries I tried, like tips to overcome writer’s block, produced results that didn’t quote directly from (or source) anyone. But they were also totally unoriginal. Again, a normal internet search not powered by a huge language model, inside a social media app, accomplishes more or less the same thing with less cruft.

Meta AI produced highly straightforward, almost minimal answers. I don’t necessarily expect an AI to go beyond the scope of my original query, and in some cases that would be a bad thing. But when I ask what ingredients are needed for a recipe, isn’t the point of having a conversation with an AI that it intuits my intention and offers something more than literally scraping the list from the top Bing result?

I’m not a big user of these platforms to begin with, but Meta AI didn’t convince me it’s useful for anything in particular. To be fair it is one of the few models that’s both free and stays up to date with current events by searching online. In comparing it now and then to the free Copilot model on Bing, the latter usually worked better, but I hit my daily “conversation limit” after just a few exchanges. (It’s not clear what if any usage limits Meta will place on Meta AI.)

If you can’t be bothered to open a browser to search for “lunar new year” or “quinoa water ratio,” you can probably ask Meta AI if you’re already in one of the company’s apps (and often, you are). You can’t ask Tiktok that! Yet.


Software Development in Sri Lanka

Robotic Automations

Is TikTok getting banned? Not yet, but that doesn't mean you shouldn't explore alternatives | TechCrunch


As a TikTok ban gets closer to becoming a reality in the United States, it might be time to start thinking about other platforms to adopt early in case you’re left to fill the void left by the popular app at some point in the future.

On Wednesday, President Biden signed a bill that would ban TikTok if its Chinese parent company, ByteDance, fails to sell the app within a year, bringing the possibility of TikTok ban closer than ever before. However, given the one-year timeline, TikTok isn’t going to vanish immediately, especially since the company has vowed to fight the bill in court.

China is also expected to block a sale because the Chinese government would need to approve the transfer of the app’s algorithms. And if ByteDance does sell TikTok, it would likely be without the app’s algorithms, which means that if TikTok does avoid a ban, there’s a possibility that the app might look different from what millions of Americans have become accustomed to.

Given all of these scenarios, it’s not too early to start considering other platforms. While there’s no 1:1 TikTok replacement, there are some viable options to consider that offer a similar experience. Many companies have spent the last few years building out TikTok clones within their own products, and some of them are worth considering.

Instagram Reels

Image Credits: Meta

Instagram’s Reels product is arguably the most popular TikTok clone, and with good reason. Many of the videos are the same, as creators often share the same content that they post on TikTok to Instagram Reels. Plus, a lot of the trending sounds and topics on TikTok eventually make their way over to Instagram Reels. Because a lot of the content is the same, Instagram Reels might be the best option for a TikTok alternative.

However, given that TikTok’s algorithm is largely unmatched, Instagram Reels might not be able to surface videos you’re interested in on the same level that TikTok can. But, Instagram has been enhancing the Reels recommendation algorithm, so we can probably expect it to get better overtime.

If you’re someone who uses TikTok as a sort of search engine to find places to explore or eat around you, Reels might be the best alternative for you because the feed features a “Nearby” tab that surfaces content related to your geographic location.

If a TikTok ban becomes a reality, Instagram Reels will likely become the most popular home for short-form video content because it already largely dominates the social media landscape, which is why you might want to check it out and get used to it if you haven’t already.

YouTube Shorts

Image Credits: YouTube

YouTube is another platform that has been building out a TikTok-like product. YouTube Shorts might be the best TikTok alternative for you if you’re someone who likes to find new music on TikTok, given that YouTube Shorts has access to YouTube’s vast library of songs and music videos, something that TikTok no longer has due to its spat with Universal Music Group.

YouTube Shorts also has an advantage that other services on this list don’t, which is an integration with a popular long-form video content platform. Millions of people around the world already go to YouTube every day to watch content, so if TikTok were to get banned, YouTube has the potential to become the go-to place for short-form content as well, especially if popular TikTok creators choose it as the new home of their content.

Unfortunately, the content on YouTube Shorts often isn’t as engaging as it can be on platforms like TikTok or Instagram Reels, as it sometimes features content that has been reposted from longer YouTube videos. Still, you could search for content that you want to see and find videos based on hashtags or keywords.

Snapchat Spotlight

Image Credits: Snapchat

Snapchat’s Spotlight feed is another viable TikTok alternative if you’re looking for short and entertaining content. Unlike TikTok and Instagram Reels, Spotlight generally only surfaces funny and lighthearted videos. You likely won’t find political or news content on the feed, which could be a selling point for some users.

Spotlight features a trending section where you can watch popular videos based on different topics and songs that are having a moment. Similar to TikTok and Instagram Reels, you can search for content based on keywords and hashtags.

However, one of the biggest cons when it comes to Snapchat Spotlight is that it has struggled to go beyond its younger users. Given that adults are more likely to use a platform like TikTok or Instagram Reels, you might not find the content on Spotlight as engaging because it mostly caters to younger audiences.

Unfortunately, the comments section on Spotlight videos isn’t as great as it is on platforms like TikTok or Instagram Reels, where sometimes the top comments can be more entertaining than the video itself.

Fanbase

Image Credits: Fanbase

Fanbase is a subscription-based social network that is essentially a combination of TikTok, Instagram, Patreon, Clubhouse, and Snapchat. The app features short-form videos, images, long-form videos, Stories, livestreams, and audio rooms. While the app is free-to-use you can pay a subscription to get access to exclusive content.

What makes Fanbase a possible alternative to TikTok is the app’s “Flickz” feed. Like TikTok, Flickz includes a feed for discovery and another feed dedicated to content from creators you follow. You can find all sorts of content on Fanbase, including videos on sports, cooking, music, humor, and more.

The app was founded with the mission of valuing and platforming Black creators, whose content is often appropriated or undervalued on traditional social media platforms. Fanbase is an ad-free platform that promises to never shadowban or suppress content.

Zigazoo

Image Credits: Zigazoo

Zigazoo is a relatively new short-form video platform aimed at young users and could be a good TikTok alternative for kids and teens. The app features lighthearted and playful videos and is considered a safer alternative to TikTok, as it doesn’t have a comments feature and has strict moderation policies.

The app lets users browse through or create short videos based on challenges or educational prompts. Zigazoo also features fun dancing videos, which is one of TikTok’s most popular content categories. Like TikTok and Instagram Reels, the app includes different effects, sounds, and filters for video.

The platform is poised for success, as it has raised a total of $20 million from notable investors like Jimmy Kimmel, Serena Williams, TikTok stars Charli and Dixie D’Amelio, and the NBA.

While the app isn’t a TikTok replacement for adults, it’s a great alternative for younger users, especially those with parents who are concerned about TikTok’s potential harm to kids and teens.

Reddit

London, UK – July 31, 2018: The buttons of the app Reddit, surrounded by Pinterest, Whatsapp, and other apps on the screen of an iPhone.

Reddit might not be the first platform you think of when considering TikTok alternatives, but the app’s video feed is worth checking out, especially if you already frequent the app. The platform offers a video feed that features popular short-form content that you can swipe through. There’s also a comment section that you can access by swiping up.

It’s worth noting that the content in the feed is somewhat different from the videos you see on TikTok. While TikTok often shows you content directly from creators, Reddit’s video feed often surfaces reposted viral videos that people have been discussing.

If you’re someone who mainly goes to TikTok for viral, funny videos, then Reddit’s video feed might be a good place for you to get your short-form video fix.

LinkedIn

Image Credits: Nikolas Kokovlis / NurPhoto / Getty Images

You might be wondering why LinkedIn is on this list, but hear me out. TechCrunch reported last month that LinkedIn is testing a new TikTok-like video feed in its app. The feed features content about news events, politics, career growth, office humor, professionalism, and more. If you’re someone whose TikTok ‘For You’ feed often includes content like this, then LinkedIn’s TikTok clone could be a viable alternative for you.

Since the feed is still pretty new, LinkedIn has the potential to build out a viable TikTok alternative for adults. There’s already chatter about how LinkedIn has been able to compete with X (following the chaos after Musk purchased it), so there’s potential for LinkedIn to take on TikTok as well. We’ll just have to wait and see.

Vine

Image Credits: Jakub Porzycki/NurPhoto / Getty Images

Now before you get too excited, no, Vine isn’t back.

However, X owner Elon Musk has teased the return of Vine since he purchased the social network formerly known as Twitter. On one occasion, Elon asked his followers if he should bring back Vine. In another instance, he responded “Very well” to a tweet calling for the return of Vine.

As a refresher: Vine was incredibly popular in the early-to-mid 2010s, but was shut down in 2017 after Twitter purchased it. The move was quite controversial, and since then, many popular Vine creators have moved to TikTok or YouTube.

If TikTok were to get banned, it would make sense for Musk and X Corp to bring back Vine and capitalize on the loss of TikTok. Given that Vine is largely credited for the emergence of short-form videos, the app would have the potential to make a great comeback.

Of course, there’s the question of whether the app would stick to its original 7-second limit. It’s been years since Vine popularized the short-form video format, and people’s appetites for content have gone beyond 7 seconds, as TikTok and Instagram Reels let you post longer videos. Regardless of what a relaunch would look like, I think it’s safe to say that people would be interested, especially if TikTok was no longer a player in the short-form video market.




Software Development in Sri Lanka

Robotic Automations

Senate passes a bill forcing TikTok to face a ban if ByteDance doesn't sell it | TechCrunch


The Senate passed a bill, included with the foreign aid package, that will ban TikTok if its owner, ByteDance, doesn’t sell it within a year. Senators passed the bill 79-18 Tuesday after the House passed it with overwhelming majority over the weekend.

President Joe Biden will have to sign the bill to make it law, and as per a statement released by the White House, he intends to do so on Wednesday.

Notably, in March, the House passed a similar standalone bill to ban TikTok or force its sale with a six-month time limit. However, the Senate never took that bill up. This time, as the bill was tied with critical foreign aid to Ukraine, Israel, and Taiwan, the Senate had to make a decision.

TikTok didn’t immediately release a statement. However, Michael Beckerman, the company’s head of public policy for the Americas, said that the company plans to challenge the move in courts, according to Bloomberg.

“This is an unprecedented deal worked out between the Republican Speaker and President Biden. The stage that the bill is signed, we will move to the courts for a legal challenge,” he said in a memo to TikTok’s US staff earlier this week.

The bill gives Bytedance nine months to force a sale with a 90-day extension  — so effectively a year to complete the deal.

Last week, when the House passed the bill, TikTok said it was “unfortunate” that the House was using the cover of important foreign and humanitarian assistance to jam through a ban bill that restricts the “free speech rights of 170 million Americans.”

While TikTok operates out of Singapore, the U.S. has been concerned about the data of its citizens, given the Chinese ownership of the social media platform. TikTok has continually tried to assure the government that it doesn’t give out U.S. user data to China with different campaigns.




Software Development in Sri Lanka

Robotic Automations

Wall Street doesn't seem too keen on a potential Salesforce-Informatica pairing | TechCrunch


When a significant rumor emerged last weekend that Salesforce was interested in buying Informatica, a legacy data management company that predates the cloud, it didn’t take long for investors to express their negative feelings on the idea. In fact, since the start of business on Monday, stockholders on both sides of the equation have been making it clear that they aren’t happy with a potential coupling between the two companies.

After the story broke that Salesforce was the suitor, the company’s stock price began dropping, and is down almost 4.6% over the last five days. This probably reflects investors’ concerns that the deal would see them overpaying for a moderate amount of additional revenue and not a ton of innovation. For Informatica investors, it was the opposite: The price was too low to warrant selling — they wanted more, more, more — and their stock also dropped, down over 7% over the same period.

That doesn’t mean a deal won’t happen, but it was frankly a surprise to even hear that Salesforce was back in the big M&A discussion and looking at another major deal after taking several years off. It seems that activist pressure last year combined with lower growth and higher interest rates had forced the company to rethink growth through M&A and embrace the joys of profitability and free cash flow. To appease them, Salesforce was able to stave off activist investors by being more conservative; conducting some big layoffs; and even disbanding the company’s internal M&A committee, which helped identify and vet possible M&A targets.

But you can’t keep an acquisitive company down forever, and historically it has been extremely acquisitive, buying 74 companies since its founding in 1999, with 13 coming in 2020 alone, per Crunchbase data. The biggest by far of that bunch was the $28 billion deal to buy Slack at the end of 2020. After that, Salesforce went mostly quiet with just six much more modest deals over the next three years.

As Salesforce projects growth slipping into single-digit numbers next fiscal year, perhaps the company sees a target like Informatica as a way to buy some revenue and brute force some additional percentage points. At the same time, it would be grabbing a data management platform at a time when getting your data house in order is particularly important in the age of generative AI.

It’s worth noting that SnapLogic CEO Gaurav Dhillon, who co-founded Informatica back in the 1990s, told MarketWatch this week that he thinks the coupling would be a bad idea for both companies and their customers. Though Dhillon is not exactly a neutral observer, he might not be wrong, either.

Ray Wang, founder and principal analyst at Constellation Research, sees Salesforce’s own data integration tooling as a stronger offering. “The potential acquisition of Informatica is quite curious as the client base and tech is not cutting edge. Although it could potentially solve a data integration challenge that Salesforce has had, Data Cloud is already a strong offering, so I’m not sure if this deal makes sense,” Wang told TechCrunch.

But Arjun Bhatia, a financial analyst at William Blair sees some upside to a possible deal from a strategy perspective. “The reported price is high, and it’s a bigger deal than I would have expected for them to start off with M&A again, but I think it makes sense strategically. Better to invest in the infrastructure first before getting too far down the application/copilot path. It’s a nicely profitable business, too, which is different from past acquisitions,” Bhatia said.

Nobody knows how this will end up, or who is right, but it’s worth exploring the underlying financials of these two companies to see if a deal would even make sense.

To buy or not buy, that is the question

Salesforce grew 11% in its most recent fiscal year. The company also told investors that it expects to grow by 9% in its current fiscal 2025. Salesforce’s trailing and forward growth numbers likely led to the company announcing a dividend for the first time along with boosting its share buyback program to $10 billion. Meta announced its first dividend around the same time.

By projecting 9% revenue growth and announcing a program to directly pay investors for holding its shares, Salesforce seemed to herald a different era for its business. It would grow at a modest pace, generate mountains of cash — the CRM giant had free cash flow of $3.26 billion in its most recent quarter — and dole out a large piece of those funds to investors through dividends and reductions to its share count.

You can imagine why some investors are therefore slightly confused that Salesforce is considering spending more than $10 billion on Informatica, a purchase that would add some revenue scale to Salesforce but little in the form of future revenue growth.

Informatica is also far smaller than Salesforce, making its potential revenue bump to Marc Benioff’s company modest. In its most recent quarter, Salesforce had revenue of $9.29 billion, and Informatica turned in $445.2 million. Salesforce had $1.45 billion worth of net income, and Informatica had $64.3 million.

Comparing the top and bottom lines of an acquiring company and its target will always lead to disparate numerical scale; but importantly, Informatica is not growing so quickly as to represent a material new source of expansion for Salesforce. Total revenue at Informatica grew 12% in its most recent quarter, around what Salesforce itself posted.

The ace up Informatica’s sleeve is that while its total revenue growth is slow, one important segment of its revenues is expanding quickly. The company reported that its “Cloud Subscription ARR,” or the recurring revenue associated with its “hosted cloud contracts” grew 37% to $616.8 million in its most recent quarter.

Certainly, 37% growth is in a different league than 9% or 10% or 11%. But Informatica’s cloud ARR is expected to grow 35% per the company to a range of “$826 million to $840 million” in its new fiscal year. At the top end of that range, all cloud subscription revenue from the smaller company would equate to around 2% of Salesforce’s expected revenue in its current fiscal year. If we were to compare Informatica cloud net-new ARR that it expects this year instead, the percentage becomes even smaller.

Put another way, the growth business at Informatica, while very important to its own worth and future, is very, very small compared to Salesforce’s current size, and would therefore have a modest-at-best impact on its overall growth rates.

If growth at Informatica post-acquisition is not expected to put Salesforce on a new, higher trajectory in growth terms and also does not deliver scads of new profitability, the deal has to rest on strategic impacts that are harder to measure at this distance. Certainly at the expected price tag, it seems that Salesforce would be paying steeply for a shot in the arm that looks more like a mosquito bite than something life-altering.


Software Development in Sri Lanka

Robotic Automations

Cape dials up $61M from a16z and more for mobile service that doesn't use personal data | TechCrunch


AT&T’s recent mega customer data breach — 74 million accounts affected — laid bare how much data carriers have on their users, and also that the data is there for the hacking. On Thursday, a startup called Cape — based out of  Washington, D.C., and founded by a former executive from Palantir — is announcing $61 million in funding to build what it claims will be a much more secure approach: It won’t be able to leak your name, address, Social Security number or location because it never asks for these in the first place.

“You can’t leak or sell what you don’t have,” according to the company’s website. “We ask for the minimal amount of personal information and store sensitive credentials locally on your device, not on our network. That’s privacy by design.”

The funding is notable in part because Cape’s appeal to users is not yet proven. The company only came out of stealth four months ago, and it has yet to launch a commercial service for consumers. That’s due to come in June, CEO and founder John Doyle said in an interview. It has one pilot project in operation, deploying some of its tech with the U.S. government, securing communications on Guam.

The $61 million it announced Thursday is an aggregation across three rounds: a seed and Series A of $21 million (raised when it was still in stealth mode as a company called Private Tech) and a Series B of $40 million. The latest round is being co-led by A-Star and a16z, with XYZ Ventures, ex/ante, Costanoa Ventures, Point72 Ventures, Forward Deployed VC and Karman Ventures also participating. Cape is not disclosing its valuation.

Doyle attracted that investor attention in part because his past roles have included nearly nine years of working for Palantir as the head of its national security business. Prior to that, he was a special forces sergeant in the U.S. Army.

Those jobs exposed him to users (like government departments) who treated the security of personal information and privacy around data usage as essential. But, more entrepreneurially, they also got him thinking about consumers.

With the big focus that data privacy and security have today in the public consciousness — typically because of the many bad-news stories we hear about data breaches, the encroaching activities of social networks, and many questions about national security and digital networks — there is a clear opportunity to build tools like these for ordinary people, too, even if it feels like that might be impossible these days.

“It’s actually one of the reasons I started the company,” he told TechCrunch. “It feels like the problem is too big, right? It feels like our data is already out already out there and all these different ways and there’s really nothing to be done about it. We’ve all adopted a learned helplessness around the ability to be connected, but  have some sort of private, some sort of control over our own data, but that’s not necessarily true.”

Cape’s first efforts will be focused on providing eSIMs to users, which Doyle said would be sold essentially on a prepaid format to avoid the data that a contract might entail. Cape on Thursday also announced a partnership with UScellular, which itself provides an MNVO covering 12 cellular networks; Doyle said that Cape is talking with other telcos, too. Initially, it’s unlikely to bundle that eSIM with any mobile devices, although that also is not off the table for the future, Doyle said. Nor will the company provide encryption services around apps, voice calls and mobile data, at least not initially.

“We’re not focused on securing the content of communications. There’s a whole host of app-based solutions out there, apps out there like Proton Mail and Signal, and WhatsApp and other encrypted messaging platforms that do a good job, to varying degrees, depending on who you trust for securing the contents of your communications,” he said. “We are focused on your location and your identity data, in particular, as it relates to connecting to commercial cellular infrastructure, which is a related but separate set of problems.”

Cape’s not the only company in the market that is trying (or has tried, past-tense) to address privacy in the mobile sphere, but none of them has really made a mark so far. In Europe, recent efforts include the MVNO Murena, the OS maker Jolla, and the hardware company Punkt. Those that have come and gone include the Privacy Phone (FreedomPop) and Blackphone (from Geeksphone and Silent Circle).

There’s already the option to buy a prepaid SIM in the U.S. anonymously, but Cape points out that this has other trade-offs and isn’t as secure as what Cape is building. Although payments for this might be anonymous, a user’s data is still routed through the network infrastructure of the underlying carrier, making a user’s movements and usage observable. You can also still be open to SIM swap attacks and spam.

For a16z, the investment is becoming a part of the firm’s “American Dynamism” effort, which this week got a $600 million boost from the latest $7.2 billion in funds that the VC raised.

“Cape’s technology is an answer to long-standing, critical vulnerabilities in today’s telecom infrastructure that impacts everything from homeland security to consumer privacy,” said Katherine Boyle, general partner at a16z, in a statement. “The team is the first to apply this caliber of R&D muscle to rethinking legacy telecom networks, and are well placed to reshape the way mobile carriers think about their subscribers — as customers instead of products.”


Software Development in Sri Lanka

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