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Watch: OpenAI's media deal rush continues with FT deal


OpenAI has landed a new content deal with the FT. But instead of being a merely simple deal in which OpenAI gets words, and FT gets money, the two are teaming up a bit more deeply. Look to see FT.com links in ChaptGPT in the future.

But the FT-OpenAI tie-up tells us a bit more than that one media company will soon have a few more ducats in its pockets. No, it’s yet another OpenAI deal that will see the Microsoft-backed AI shop further cement its ability to ingest training material without legal risk, and start to pay some of the providers of said material for their work.

All good, right? In a sense, but there’s a concern that as some AI companies work to start paying for training data after they consumed oceans of it, they could wind up pulling the training ladders up behind them. If that happens, other AI companies that might want to follow in their footsteps could find steeper, and more expensive, the same path that the OpenAIs of the world already hiked.

It’s a weird and irksome situation in which you want to see fair payment for materials used, but also ensure that we don’t hand the future of AI to a bunch of already wealthy companies. That would just cement oligopoly. And, of course, media companies that are spending all their money and more to report and write need fair comp. Those are the stakes. Let’s talk about it!


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Apple iPad event 2024: Watch Apple unveil new iPads right here | TechCrunch


We’re still well over a month out from WWDC, but Apple went ahead and snuck in another event. On Tuesday, May 7 at 7AM PT/10AM ET, the company is set to unveil the latest additions to the iPad line. According to the rumor mill, that list includes: a new iPad Pro, iPad Air, Apple Pencil and a keyboard case.

More surprisingly, the event may also see the launch of the new M4 chip, a little over six months after the company unveiled three new M3 chips in one fell swoop. Why the quick silicon refresh? Well, for starters, word on the street is that Apple launched the M3 later than expected (likely owing to supply chain issues), forcing the company to launch all three chips at the same event.

Image Credits: Apple

Couple that with the fact that Microsoft is rumored to be launching its own third-party silicon at Build at the end of May, and you start to understand why the company opted not to wait. An announcement may be even more pressing, given that the Microsoft/ARM chips are said to offer “industry-leading performance” — apparent shot across Apple’s bow. Could a new chip also mean new Macs? That would be a short refresh cycle for the current crop, but it’s certainly not out of the realm of possibility.

What does seem certain, however, is a new iPad Pro with an OLED display, a 12.9-inch iPad Air and new gestures for the Apple Pencil. Also, expect plenty of AI chatter. It’s 2024, after all. You can watch along live at the link below, and stay tuned to TechCrunch for news as it breaks.

 


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Watch: Elon Musk’s big plans for xAI include raising $6 billion


TechCrunch recently broke the news that Elon Musk’s xAI is raising $6 billion at a pre-money valuation of $18 billion.

The deal hasn’t closed yet, so the numbers could change. But it sounds like Musk is making an ambitious pitch to investors about his 10-month-old startup — a rival to OpenAI, which he also co-founded and is currently suing for allegedly abandoning its initial commitment to focus on the good of humanity over profit.

You may be wondering: Doesn’t Musk have enough companies already? There’s Tesla, SpaceX, X (formerly Twitter), Neuralink, The Boring Company … maybe he should spend his time on the existing businesses that have struggles of their own.

But in the xAI pitch, Musk’s connection to these other companies is a feature, not a bug. xAI could get access to crucial training data from across his empire — and its technology could, in turn, help Tesla achieve its dream of true self-driving cars and bring its humanoid Optimus robot into factories.

Of course, Musk’s hype doesn’t always match up to reality. But with this impressive new funding, xAI could become an even more formidable competitor in the AI world. Hit play, then leave your thoughts below!


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Watch: Between Rabbit’s R1 vs Humane’s Ai Pin, which had the best launch? | TechCrunch


After a successful unveiling at CES, Rabbit is letting journalists try out the R1 — a small orange gadget with an AI-powered voice interface. This comes just weeks after the launch of the Humane Ai Pin, which is similarly pitched as a new kind of mobile device with AI at its center.

While we’re still waiting on in-depth reviews (as opposed to an initial hands-on) of the R1, there are some pretty clear differences between the two devices.

Most noticeably, the Ai Pin is screen-less, relying instead on a voice interface and projector, while the R1 has a 2.88 inch screen (though it’s meant to be used for much more than typing in your WiFi password). And while the AI pin costs $699, plus a $24 monthly subscription, the R1 is just $199. Both, according to TechCrunch’s Brian Heater, show the value of good industrial design.

It sounds like neither the Ai Pin (which got some truly scathing reviews) nor the R1 makes a fully convincing case that it’s time to replace our smartphones — or that AI chatbots are the best way to get information from the internet. But if nothing else, it’s exciting that the hardware industry feels wide open again. Press play, then let us know if you’re playing to try either the R1 or the Ai Pin!


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Snap says total watch time on its TikTok competitor increased more than 125% | TechCrunch


As part of its Q1 2024 earning release, Snap revealed that total watch time on its TikTok competitor, Spotlight, increased more than 125% year-over-year. Snapchat launched the TikTok-like feed in late 2020 as a way to compete with the rising popularity of TikTok. The company is touting the success of its short-from video feed a day after President Biden signed a bill that would ban TikTok if its Chinese parent company, ByteDance, fails to sell it within a year.

Snap says overall time spent watching content globally grew year-over-year, driven primarily by increases in total time spent watching Spotlight and creator Stories. The company says it has built more advanced ranking models over the past year that are driving improvements in content engagement.

The app had 422 million daily active users in Q1 2024, an increase of 39 million, or 10% year-over-year. Snapchat+ subscribers also more than tripled year-over-year, surpassing 9 million subscribers in the quarter.

Snap plans to continue to invest in generative AI models for the creation of Lenses on the platform, noting that the number of ML and AI Lenses viewed by users increased by more than 50% year-over-year.

The company’s revenue for the quarter increased 21% to $1,195 million, marking a return to double-digit growth. In its letter to investors, Snap attributes the growth to improvements that it made to its advertising platform, along with an increase in demand for its direct-response (DR) advertising solutions. The company says the number of small and medium sized advertisers on Snapchat increased 85% year-over-year.

Snap shares rose more than 26% in extended trading on Thursday.

The company, which laid off 10% of its workforce in Februrary, now says it expects headcount to “grow modestly as we move through 2024.”

Snap’s earnings release comes a day after Meta reported 27% growth for its first quarter. However, Meta’s shares plunged on weak revenue guidance and plans to invest “aggressively” in AI.


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Watch: FTC bans noncompetes, court challenge incoming | TechCrunch


The Federal Trade Commission voted 3-2 this week to ban noncompete agreements. While the FTC estimates that nearly one in five American workers is subject to a noncompete, these agreements haven’t been a huge issue in Silicon Valley, because they’re not enforceable in California.

This has arguably been one of the region’s competitive advantages, as it allows employees to start something new without worrying (in most cases) that they’ll have to spend the next few years battling their old employer in court.

With this ban, the FTC could give employees across the United States that same freedom. In fact, the commission claims this will lead to the creation of 8,500 new startups annually, as well as 17,000 to 29,000 additional patents in an average year.

Some caveats: This rule only applies to noncompetes, not non-disclosure agreements, so former employees can still get into legal hot water if their old company accuses them of spilling trade secrets. And while the FTC says most existing noncompetes will no longer be enforceable, existing noncompetes for senior executives will still hold.

Most significantly, the U.S. Chamber of Commerce says it will sue the FTC over the rule, arguing that the commission doesn’t have the legal authority to issue this kind of regulation.

Hit play, then let me know what you think! (And if you’re pining for your Alex Wilhelm, fear not: He’ll be back hosting the TechCrunch Minute next week.)


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Watch it and weep (or smile): Synthesia's AI video avatars now feature emotions | TechCrunch


Generative AI has captured the public imagination with a leap into creating elaborate, plausibly real text and imagery out of verbal prompts. But the catch — and there is often a catch — is that the results are often far from perfect when you look a little closer.

People point out strange fingers, floor tiles slip away, and math problems are precisely that: problematically, sometimes they don’t add up.

Now, Synthesia — one of the ambitious AI startups working in video, specifically custom avatars designed for business users to create promotional, training and other enterprise video content — is releasing an update that it hopes will help it leapfrog over some of the challenges in its particular field. Its latest version features avatars — built based on actual humans captured in their studio — which provide more emotion, better lip tracking and what it says are more expressive natural and human movements when they are fed text to generate videos.

The release is coming on the heels of some impressive progress for the company to date. Unlike other generative AI players like OpenAI, which has built a two-pronged strategy — raising huge public awareness with consumer tools like ChatGPT while also building out a B2B offering, with its APIs used by independent developers as well as giant enterprises — Synthesia is leaning into the approach that some other prominent AI startups are taking.

Similar to how Perplexity’s focus on really nailing generative AI search, Synthesia is focused on really nailing how to build the most humanlike generative video avatars possible. More specifically, it is looking to do this only for the business market and use cases like training and marketing.

That focus has helped Synthesia stand out in what is become a very crowded market in AI that runs the risk of getting commoditized when hype settles down into more long-term concerns like ARR, unit economics and operational costs attached to AI implementations.

Synthesia describes its new Expressive Avatars, the version being released today, as a first of their kind: “The world’s first avatars fully generated with AI.” Built on large, pre-trained models, Synthesia says its breakthrough has been in how they are combined to achieve multimodal distributions that more closely mimic how actual humans speak.

These are generated on the fly, Synthesia says, which is meant to be closer to the experience we go through when we speak or react in life, and stands in contrast to how a lot of AI video tools based around avatars work today: typically these are actually many pieces of video that get quickly stitched together to create facial responses that line up, more or less, with the scripts that are fed into them. The aim is to appear less robotic, and more lifelike.

Previous version:

New version:

As you can see in the two examples here, one from Synthesia’s older version and the one being released today, there is still a ways to go still in development, something CEO Victor Riparbelli himself also admits.

“Of course its not 100% there yet, but it will be very, very soon, by the end of the year. It’ll be so mind blowing,” he told TechCrunch. “I think you can also see that the AI part of this is very subtle. With humans there’s so much information in the tiniest details, the tiniest like movements of our facial muscles. I think we could never sit down and describe, ‘yes you smile like this when you’re happy but that is fake right?’ That is such a complex thing to ever describe for humans, but it can be [captured in] deep learning networks. They’re actually able to figure out the pattern and then replicate it in a predictable way.” Next thing it’s working on, he added, is hands.

“Hands are like, super hard,” he added.

The focus on B2B also helps Synthesia anchor its messaging and product more on “safe” AI usage. That is essential especially with the huge concern today over deepfakes and using AI for malicious purposes like misinformation and fraud. Even so, Synthesia hasn’t managed to avoid controversy on that front altogether. As we’ve pointed out before, Synthesia’s tech has previously been misused to produce propaganda in Venezuela and false news reports promoted by pro-China social media accounts.

The company today noted that it has taken further steps to try to lock down that usage. Last month, it updated its policies, it said, “to restrict the type of content people can make, investing in the early detection of bad faith actors, increasing the teams that work on AI safety, and experimenting with content credentials technologies such as C2PA.”

Despite those challenges, the company has continued to grow.

Synthesia was last valued at $1 billion when it raised $90 million. Notably, that fundraise was almost a year ago, in June 2023.

Riparbelli (pictured above, right, with other co-founders Steffen Tjerrild, Professor Lourdes Agapito, Professor Matthias Niessner) said in an interview earlier this month that there are currently no plans to raise more, although that doesn’t really answer the question of whether Synthesia is getting proactively approached. (Note: we are very excited to have the actual human Riparbelli speaking at an event of ours in London in May, where I’m definitely going to ask about this again. Please come if you’re in town.)

What we do know for sure is that AI costs a lot of money to build and run, and Synthesia has been building and running a lot.

Prior to the launch of today’s version some 200,000 people have created more than 18 million video presentations across some 130 languages using Synthesia’s 225 legacy avatars, the company said. (It does not break out how many users are on its paid tiers, but there are a lot of big-name customers including Zoom, the BBC, DuPont and more, and enteprises do pay.) The startup’s hope, of course, is that with the new version getting pushed out today those numbers will go up even more.


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Watch: Why Perplexity AI could be worth up to $3B


Perplexity AI‘s latest, large fundraising event could be quickly superseded by another, even larger chunk of capital, TechCrunch reports. Yes, the $62.7 million that the startup raised at just over a $1 billion valuation could be quickly stomped on by a raise of as much as $250 million at a valuation that is up to 2.5 to 3x larger.

What’s going on? Quick revenue growth at the company that has reportedly reached around $20 million worth of annual recurring revenue. Sure at $1 billion that’s a 50x revenue multiple, but if the company is on a quick enough growth pace, investors paying up to 150x for its current ARR might not be as insane as it looks on paper, even if similarly priced bets back in the 2021-era often struggled.

The hype around Perplexity is a big deal, because it shows that some startups are doing well enough to attract outsized venture investment. Good. A concern that I have had for some time is that the AI boom would wind up merely enriching incumbents and not lifting enough startups up to create a new class of tech giants; my view is that having a permanent class of tech gods is not the best way to drive long-term innovation. And I think that search, in general, is a good indication of what happens when technology giants fail to meaningfully compete with one another.

So, news from Amazon and Microsoft and Meta and Adobe in the AI realm felt like a reminder this week that Big Tech is going to try to eat the AI moment. Perplexity, to bastardize Star Wars, could be among our key hopes to avoid merely seeing Microsoft or Alphabet add another trilly to their market cap. Hit play, let’s have a chat!


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Watch: How Headspin's founder fraudsters almost get away with lying to investors | TechCrunch


News that the former founder of HeadSpin is headed to prison for fraud was further evidence that the last boom in the paired worlds of startup and venture capital led to more than just a little bit of fraud. Manish Lachwani, founder in question, is getting prison time and a massive fine for lying to investors, lies that allowed his company to raise nine-figures worth of funding.

The company persists, and would likely prefer to let the entire situation fade from the public eye. Fair enough, but the tale of Lachwani — the New York Times reports that Lachwani inflated “HeadSpin’s revenue nearly fourfold, making false claims about its customers and creating fake invoices to cover it up” — is not an isolated case.

Even past the somewhat dated frauds at Theranos and Rothenberg Ventures, there’s been a lot to cover lately. From investor complaints about Bolt’s fundraising, to BloomTech, Nikola, Binance, and FTX, we’ve seen a lot of financial shenanigans. Why are we seeing so much fraud and related behavior from upstart tech companies?

Pace, in a sense. A historically abnormal period of low interest rates, capital hungry for yield flooded into the venture capital world. As a result, investors got very busy with their checkbooks and sometimes spent less time on diligence. Recall that many very young startups are more ideas and potential than hard assets and historical cash flows, so what counts as diligence for a PE firm looking to buy, say, gas stations, is different than doing diligence on a Seed-stage startup. But capital poured into late-stage startups too, leading to a lot of capital moving very quickly. Mistakes were made, or, put another way, some founders saw the boom time as a period in which they could bend the rules.

One thing to keep in mind is that as a market reaches its peak, you will often see fraud explode. Consider it a top warning. Hit play, let’s talk about it!


Software Development in Sri Lanka

Robotic Automations

Watch: Tesla's Cybertruck recall, layoffs set the stage for its Q1 earnings | TechCrunch


Tesla is not having a good start to the week. In its defense, it didn’t have a very good end to last week, either.

Today the news is that recent price cuts have irked Tesla investors, who sent its shares off around 4% in early trading today. Those losses have extended Tesla’s total share-price declines to around 43% for the year. Which is, as they say, a lot.

But those price cuts are hardly the only issues needling the U.S.-based EV company. Tesla’s last week saw the company slash its staffing, including high-performers. With the company reporting earnings tomorrow, its actions at the moment are under even greater scrutiny than usual.

The backdrop to all of this is the company’s apparent move away from a basement-priced EV, and towards a robotaxi effort that some consider to be technologically premature. Regardless, Tesla’s price cuts, pivots, and mass-recall of its Cybertruck vehicle are not the recipe for content investors. Hit play, and let’s have some fun.

After we recorded this clip, Bloomberg posted a fascinating dig into the company’s current form that we recommend as further reading.


Software Development in Sri Lanka

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