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Sam Altman has choice words for the OpenAI board members who fired him

OpenAI CEO Sam Altman has strong words for the former board members who abruptly fired him late last November. “[A]ll those people that I feel, like, really f—ed me and f—ed the company were gone, and now I had to clean up their mess,” he told Bloomberg in a wide-ranging interview. Just over a year…

Inside the wild fall and last-minute revival of Bench, the VC-backed accounting startup that imploded over the holidays

Friday, December 27, was supposed to be the start of a relaxing holiday weekend. But it was chaos for thousands of small business owners who use Bench, an accounting and tax startup based in Canada that raised $113 million from investors like Bain Capital Ventures and Shopify. That morning, they found themselves unable to log…

Imperva’s Wildest 2025 AppSec Predictions

Humans are spectacularly bad at predicting the future. Which is why, when someone appears to be able to do it on a regular basis, they are hailed as visionaries, luminaries and celebrated with cool names like Nostradamus and The Amazing Kreskin. Nostradamus made his fame on predictions about the distant future, but that technique has…

Generative AI funding reached new heights in 2024

If there was any doubt, the generative AI bubble didn’t burst in 2024. Investments in generative AI, which encompasses a range of AI-powered apps, tools, and services to generate text, images, videos, speech, music, and more, reached new heights last year. According to data from financial tracker PitchBook compiled for TechCrunch, generative AI companies worldwide…

Microsoft to spend $80 billion in FY’25 on data centers for AI

Microsoft has earmarked $80 billion in fiscal 2025 to build data centers designed to handle artificial intelligence workloads, according to a company blog post. Specifically, the tech giant plans to build out AI-enabled data centers “to train AI models and deploy AI and cloud-based applications around the world.” Of that $80 billion allocation, more than…

FTC orders AI accessibility startup accessiBe to pay $1M for misleading advertising

The U.S. Federal Trade Commission (FTC) has fined accessiBe, a startup that claims to make websites more compatible with the screen readers blind people rely on to access the internet, for false advertising and compensating reviewers without disclosing that it sponsored the reviews. In a proposed order, the FTC would require accessiBe to pay $1 million…

How to watch CES 2025’s press conferences

CES 2025 kicks off January 7. The annual Las Vegas event sets the tone for the year’s consumer electronics and automotive industries. As always, TechCrunch will be there, sniffing stories from the most exciting startups and tech giants. If you really want a piece of the action without paying for the hotel and flight, many…

xAI’s next-gen AI model didn’t arrive on time, adding to a trend

The list of flagship AI models that missed their promised launch windows continues to grow. Last summer, billionaire Elon Musk, the founder and CEO of AI company xAI, said that Grok 3, xAI’s next major AI model, would arrive by “end of year” 2024. Grok, xAI’s answer to models like OpenAI’s GPT-4o and Google’s Gemini,…

Apheris rethinks the AI data bottleneck in life science with federated computing

AI is fundamentally dependent on data, but the vast majority of health data goes unused for understandable reasons — chiefly patient privacy, regulation and IP protection. “This is the core underlying problem” of building AI solutions for life sciences and related areas like pharmaceutics, said German entrepreneur Robin Röhm. And not only that: collaboration when…

Silicon Valley stifled the AI doom movement in 2024

For several years now, technologists have rung alarm bells about the potential for advanced AI systems to cause catastrophic damage to the human race. But in 2024, those warning calls were drowned out by a practical and prosperous vision of generative AI promoted by the tech industry – a vision that also benefited their wallets.…

OpenAI failed to deliver the opt-out tool it promised by 2025

Back in May, OpenAI said it was developing a tool to let creators specify how they want their works to be included in — or excluded from — its AI training data. But 7 months later, this feature has yet to see the light of day. Called Media Manager, the tool would “identify copyrighted text,…

Judge allows California’s ban on addictive feeds for minors to go into effect

Late Tuesday evening, a federal judge blocked tech lobbying group NetChoice’s challenge to California’s recently enacted law, SB 976, which prohibits companies from serving “addictive feeds” to minors. The effect of this decision is that beginning Wednesday, companies will be prohibited from serving an addictive feed to a California-based user they know to be a…

Will Smith eating spaghetti and other weird AI benchmarks that took off in 2024

When a company releases a new AI video generator, it’s not long before someone uses it to make a video of actor Will Smith eating spaghetti. It’s become something of a meme as well as a benchmark: Seeing whether a new video generator can realistically render Smith slurping down a bowl of noodles. Smith himself…

A look back on my favorite episodes of TechCrunch’s Found podcast

TechCrunch’s Found podcast, which has brought listeners the stories behind the startups since April 2022, released its final episode today. I’ve been one of the hosts of Found since November 2022 and in that time have spoken to more than 75 founders about the startups they are building. These founders hail from many different backgrounds…

ByteDance appears to be skirting US restrictions to buy Nvidia chips: report

TikTok parent company ByteDance has big plans to buy Nvidia chips in 2025 — despite U.S. restrictions. ByteDance plans to spend $7 billion on the chips in 2025, according to reporting from The Information, citing inside sources. If ByteDance follows through, it will become one of the world’s top owners of Nvidia chips, despite U.S. efforts…

From AI agents to enterprise budgets, 20 VCs share their predictions on enterprise tech in 2025

While AI is lauded by some as the biggest technological breakthrough since the industrial revolution, enterprises — arguably the tech’s biggest potential customer base — have been slow to adopt AI. While some investors predicted that 2024 would be the year we’d start to see more AI adoption by enterprises, that didn’t play out as…

Nonprofit group joins Elon Musk’s effort to block OpenAI’s for-profit transition

Encode, the nonprofit organization that co-sponsored California’s ill-fated SB 1047 AI safety legislation, has requested permission to file an amicus brief in support of Elon Musk’s injunction to halt OpenAI’s transition to a for-profit company. In a proposed brief submitted to the U.S. District Court for the Northern District of California Friday afternoon, counsel for…

Nvidia completes acquisition of AI infrastructure startup Run:ai

Nvidia has completed its acquisition of Run:ai, an Israeli startup that helps manage and optimize AI hardware infrastructure. As part of the merger, Run:ai said its software, which currently only works with Nvidia products, will be open sourced, meaning Nvidia rivals like AMD and Intel will be able to adapt it for their hardware. “We…

Backed by a16z and QED, Brazilian startup Carecode puts AI agents to work on healthcare

AI holds huge promise for healthcare, but not just on the medical side; many startups are convinced machine learning-based systems can do a lot of good on adjacent tasks such as appointment scheduling and confirmations. Brazilian startup Carecode is among these AI believers. It’s coming out of stealth with an ambition to reduce healthcare costs…

Permira’s Brian Ruder talks AI, Squarespace acquisition, and the value of co-leadership

It has been a busy year in the private equity realm, with countless big-money acquisitions unfolding. The take-private space specifically has seen some sizable transactions, with private equity firms spearheading more than a dozen billion-dollar deals for public tech companies. London-headquartered Permira was a key protagonist, joining Blackstone to acquire European online classifieds group Adevinta…

Google CEO says AI model Gemini will the company’s ‘biggest focus’ in 2025

CEO Sundar Pichai reportedly told Google employees that 2025 will be a “critical” year for the company. CNBC reports that it obtained audio from a December 18 strategy meeting where Pichai and other executives put on ugly holiday sweaters and laid out their priorities for the coming year. “I think 2025 will be critical,” Pichai…

How to watch CES 2025’s press conferences

CES kicks off January 7. The annual Las Vegas event sets the tone of the year’s consumer electronics and automotive industries. As always, TechCrunch will be there, sniffing stories from the most exciting startups and tech giants. If you really want a piece of the action without paying for the hotel and flight, many of…

Nonprofit group joins Elon Musk’s effort to block OpenAI’s for-profit transition

Encode, the nonprofit org that co-sponsored California’s ill-fated SB 1047 AI safety legislation, has requested permission to file an amicus brief in support of Elon Musk’s injunction to halt OpenAI’s transition to a for-profit. In a proposed brief submitted to the U.S. District Court for the Northern District of California Friday afternoon, counsel for Encode…

Why DeepSeek’s new AI model thinks it’s ChatGPT

Earlier this week, DeepSeek, a well-funded Chinese AI lab, released an “open” AI model that beats many rivals on popular benchmarks. The model, DeepSeek V3, is large but efficient, handling text-based tasks like coding and writing essays with ease. It also seems to think it’s ChatGPT. Posts on X — and TechCrunch’s own tests —…

OpenAI lays out its for-profit transition plans

OpenAI says its corporate structure must evolve to advance its mission of ensuring artificial general intelligence (AGI) — AI that can complete most tasks humans can — benefits all humanity. OpenAI currently has a for-profit org controlled by a nonprofit, with a “capped profit” share for investors and employees. But in a blog post published…

AI sales rep startups are booming. So why are VCs wary?

When you really probe venture capitalists about investing in AI startups, they’ll tell you that businesses are experimenting wildly but are very slow to add AI solutions into their ongoing business processes.  But there are some exceptions. And one of them appears to be an area known as AI sales development representatives, or AI SDRs.…

ChatGPT and Sora are down for the second time this month

ChatGPT, Sora, and OpenAI’s developer-facing API went down Thursday for an hour and counting. OpenAI says it started experiencing a major outage at 11 AM PT, and the services still appear to be down at the time of publishing this article, around 12:40 PM PT. Frequent users of ChatGPT may recall that the service went…

Microsoft and OpenAI have a financial definition of AGI: report

Microsoft and OpenAI have a very specific, internal definition of artificial general intelligence (AGI) based on the startup’s profits, according to a new report from The Information. And by this definition, OpenAI is many years away from reaching it. The two companies reportedly signed an agreement last year stating OpenAI has only achieved AGI when…

Elon Musk’s xAI lands $6B in new cash to fuel AI ambitions

Updated December 25, 12:21 p.m. Pacific: Added details of xAI’s valuation and Kingdom Holdings’ contribution. xAI, Elon Musk’s AI company, has raised $6 billion in a Series C financing round. The company announced this week that Andreessen Horowitz , Blackrock, Fidelity, Lightspeed, MGX, Morgan Stanley, OIA, QIA, Sequoia Capital, Valor Equity Partners, Vy Capital, Nvidia,…

OpenAI ‘considered’ building a humanoid robot: report

OpenAI has recently explored building its own humanoid robot, according to The Information. The report cites “two people with direct knowledge” of those conversations. The ChatGPT maker has been involved in the space for some time now, by way of financial backing. It has thus far invested in Figure and 1X, along with the “general…

The AI Fix #30: ChatGPT reveals the devastating truth about Santa (Merry Christmas!)

In episode 30 of The AI Fix, AIs are caught lying to avoid being turned off, Apple’s AI flubs a headline, ChatGPT is available to people who haven’t left the 1970s, our hosts regret to inform you that an AI artist now has a personality, and ant-like robots join forces to lob each other over…

OpenAI’s o3 suggests AI models are scaling in new ways — but so are the costs

Last month, AI founders and investors told TechCrunch that we’re now in the “second era of scaling laws,” noting how established methods of improving AI models were showing diminishing returns. One promising new method they suggested could keep gains was “test-time scaling,” which seems to be what’s behind the performance of OpenAI’s o3 model –…

Elon Musk’s xAI lands $6B in new cash to fuel AI ambitions

xAI, Elon Musk’s AI company, has raised $6 billion, according to a filing with the U.S. Securities and Exchange Commission on Thursday. Investors gave a minimum of $77,593, per the filing (97 participated, but the document doesn’t reveal their identities). xAI later announced (confirming some earlier reporting) that Andreessen Horowitz , Blackrock, Fidelity, Kingdom Holdings,…

Coralogix acquires AI observability platform Aporia

Coralogix, the well-funded observability platform, on Monday announced that it has acquired Aporia, a startup that focuses on giving businesses tools to observe and secure their AI workloads, as well as set guardrails for them to avoid hallucinations or unintended disclosures. As part of this acquisition, Coralogix will launch a dedicated AI research center, Coralogix…

A popular technique to make AI more efficient has drawbacks

One of the most widely used techniques to make AI models more efficient, quantization, has limits — and the industry could be fast approaching them. In the context of AI, quantization refers to lowering the number of bits — the smallest units a computer can process — needed to represent information. Consider this analogy: When…

Sriram Krishnan named Trump’s senior policy advisor for AI

Incoming president Donald Trump has confirmed reports that Sriram Krishnan, until recently a general partner at Andreessen Horowitz (a16z), will serve as senior policy advisor for AI at the White House Office of Science and Technology Policy. Trump said in a statement that Krishnan will “help shape and coordinate AI policy across government, working with…

Palantir and Anduril reportedly building a tech consortium to bid on defense contracts

Two big defense tech players, Palantir and Anduril, are talking to tech companies including SpaceX, OpenAI, Saronic, and Scale AI about forming a consortium to bid on Pentagon contracts, according to a report in the Financial Times. The goal, the FT says, is to challenge the dominance of “prime” defense contractors like Lockheed Martin, Raytheon,…

OpenAI trained o1 and o3 to ‘think’ about its safety policy

OpenAI announced a new family of AI reasoning models on Friday, o3, which the startup claims to be more advanced than o1 or anything else it’s released. These improvements appear to have come from scaling test-time compute, something we wrote about last month, but OpenAI also says it used a new safety paradigm to train…

Nvidia clears regulatory hurdle to acquire Run:ai

Chip company Nvidia gets the green light from the European Union to complete its acquisition of Run:ai. The EU came to a unanimous decision today that Nvidia could go ahead with its acquisition of Israeli GPU orchestration platform Run:ai, according to reporting from Bloomberg. The European Commission determined that if the merger went through other…

Google is expanding Gemini’s in-depth research mode to 40 languages

Google said Friday that the company is expanding Gemini’s latest in-depth research mode to 40 more languages. The company launched the in-depth research mode earlier this month, allowing Google One AI premium plan users to unlock an AI-powered research assistant of sorts. The in-depth function works in a multi-step method, from creating a research plan…

Arizona’s getting an online charter school taught entirely by AI

The newest online-only school greenlighted by the Arizona State Board for Charter Schools comes with a twist: the academic curriculum will be taught entirely by AI. Charter schools — independently operated but publicly-funded — typically get greater autonomy compared to traditional public schools when it comes to how subjects are taught. But Unbound Academy’s application,…

British university spinoff Mindgard protects companies from AI threats

AI creates a dilemma for companies: Don’t implement it yet, and you might miss out on productivity gains and other potential benefits; but do it wrong, and you might expose your business and clients to unmitigated risks. This is where a new wave of “security for AI” startups come in, with the premise that these…

Navigating the New Era of AI Traffic: How to Identify and Block AI Scrapers

In the not-so-distant past, webmasters faced challenges from bots like Google’s search spiders, which diligently scanned websites to index content and provide the best search results for users. Fast forward to today, and we are witnessing a new breed of bot: Large Language Models (LLMs) like ChatGPT and Claude. These AI models are not just…

Perplexity has reportedly closed a $500M funding round

AI-powered search engine Perplexity has reportedly closed a $500 million funding round, valuing the startup at $9 billion. Bloomberg, citing sources familiar, reports that the round was led by Institutional Venture Partners, and that it closed earlier in December. In an email to TechCrunch, a Perplexity spokesperson declined to comment. The mammoth tranche comes as…

Boon raises $20.5M to build agentic AI tools for fleets

Logistics is the name of the game during the holiday season: Companies that can seal the deal and get people and things to the places they need to be, on time, rake it in this time of year.  But behind that demand lies a huge amount of inefficiency and fragmentation. Are logistics businesses ready for…

TuSimple pivot from self-driving to AI animation is complete with CreateAI rebrand

TuSimple has completed its pivot away from autonomous trucking to AI animation and gaming with a rebrand. The company shall henceforth be known as CreateAI.  The rebrand comes as TuSimple is embroiled in controversy over the company’s plans to move its remaining U.S. assets to China to fund the new business, which it initially announced…

Ex-Twitch CEO Emmett Shear is founding an AI startup backed by a16z

Emmett Shear, the former CEO of Twitch, is launching a new AI startup, TechCrunch has learned. The startup, called Stem AI, is currently in stealth. But public documents show it was incorporated in June 2023, and filed for a trademark in August 2023. Shear is listed as CEO on an incorporation document filed with the…

In just 4 months AI coding assistant Cursor raised another $100M at a $2.5B valuation led by Thrive, sources say

Anysphere, the developer of AI-powered coding assistant Cursor, raised $100 million Series B at a post-money valuation of $2.6 billion, according to sources with knowledge of the deal. The round is being led by returning investor Thrive Capital, the person said.  This new funding comes just four months after Anysphere raised its $60 million Series…

Instagram teases AI tools for editing appearances, backgrounds in videos using prompts

Instagram head Adam Mosseri is teasing upcoming generative AI features for the social app that will allow creators to “change nearly any aspect” of their videos using text prompts. The editing tools will be powered by Meta’s Movie Gen AI model, and are expected to launch on the social network sometime next year, Mosseri said…

Smashing Security podcast #398: Fake CAPTCHAs, Harmageddon, and Krispy Kreme

This week, we delve into the dark world of fake CAPTCHAs designed to hijack your computer. Plus, the AI safety clock is ticking down – is doomsday closer than we think? And to top it off, we uncover the sticky situation of Krispy Kreme facing a ransomware attack. All this and more is discussed in…

Decart adds another $32M at a $500M+ valuation

A young startup that emerged from stealth less than two months ago with big-name backers and bigger ambitions to make a splash in the world of AI is returning to the spotlight.  Decart is building what its CEO and co-founder Dean Leitersdorf describes as “a fully vertically integrated AI research lab,” alongside enterprise and consumer…

The promise and warning of Truth Terminal, the AI bot that secured $50,000 in Bitcoin from Marc Andreessen

“I think the most ironic way the world could end would be if someone makes a memecoin about a man’s stretched anus and it brings about the singularity.” That’s Andy Ayrey, the founder of decentralized AI alignment research lab Upward Spiral, who is also behind the viral AI bot Truth Terminal. You might have heard…

BlueQubit raises $10M to take Quantum software into real-world applications

Integrating quantum computing into real-world computer applications is an ongoing problem, as the platforms are architected fundamentally differently. BlueQubit, a San Francisco-based quantum software startup founded by Stanford alumni, thinks it might have the answer.  Its Quantum Software as a Service (QSaaS) platform attempts to tackle the above problem by providing end-users with access to…

New Anthropic study shows AI really doesn’t want to be forced to change its views

AI models can deceive, new research from Anthropic shows — pretending to have different views during training when in reality maintaining their original preferences. There’s no reason for panic now, the team behind the study said. Yet they said their work could be critical in understanding potential threats from future, more capable AI systems. “Our…

Perplexity acquires Carbon to connect AI search to your work files

Perplexity acquired a small Seattle-based startup called Carbon which specializes in connecting AI systems to external data sources, the companies announced on Wednesday. CEO Aravind Srinivasan says this will allow Perplexity to search through your files and work messages in Notion, Google Docs, Slack, and other enterprise applications sometime in early 2025. Carbon specializes in…

Microsoft bought nearly 500,000 Nvidia Hopper chips this year

Microsoft bought more than twice as many Nvidia Hopper chips this year than any of its biggest rivals. The tech giant bought 485,000 Nvidia Hopper chips across 2024 according to reporting from the Financial Times, which cited data from tech consultancy Omdia. To compare, Meta bought 224,000 of the same, flagship Nvidia chip this year.…

Who wants ‘Her’-like AI that gets stuff wrong?

Hiya, folks, welcome to TechCrunch’s regular AI newsletter. If you want this in your inbox every Wednesday, smash the link and sign up here. Last week, OpenAI launched Advanced Voice Mode with Vision, which feeds real-time video to ChatGPT, allowing the chatbot to “see” beyond the confines of its app layer. The premise is that…

GitHub launches a free version of its Copilot

Microsoft-owned GitHub today announced a free version of its popular Copilot code completion/AI pair programming tool, which will also now ship by default with Microsoft’s popular VS Code editor. Until now, most developers had to pay a monthly fee, starting at $10 per month, with only verified students, teachers, and open source maintainers getting free…

AI startup Oddysee’s new tool can generate photorealistic 3D worlds

Odyssey, a startup founded by self-driving pioneers Oliver Cameron and Jeff Hawke, is developing an AI-powered tool that can transform text or an image into a 3D rendering. The tool, dubbed Explorer, is similar in some ways to the so-called world models recently demoed by DeepMind, World Labs, and Israeli upstart Decart. Given a caption like “A…

Hauler Hero wants to bring waste management software into the 21st century

After nearly four years of working in sales at tradesperson software company ServiceTitan, Mark Hoadley (pictured above) was looking for a change and to potentially start something of his own in a similar industry. Hoadley’s brother-in-law, and now co-founder, Ben Sikma, was working on M&A in the waste management space at the time. Sikma discovered…

OpenAI may pay its nonprofit arm ‘billions of dollars’ in conversion to for-profit

OpenAI’s transition away from a for-profit corporation that’s governed by a nonprofit board is well underway — and the nonprofit could be compensated royally for it. That’s according to The New York Times, which reports that OpenAI is in discussions to pay the nonprofit billions of dollars for it to cede control. There’s pressure to…

YouTube to test a way for creators and celebrities to find AI-generated content using their likeness

YouTube is partnering with the Creative Artists Agency (CAA) to help celebrities, athletes, and creators identify content that uses their AI-generated likeness on the platform. The tool, which YouTube will begin testing early next year, will let these professionals submit requests for the removal of their AI-generated likeness. YouTube will first make the tool available for…

AI is burying company web sites in search results, but Otterly.AI thinks it can help

Many sites saw their organic traffic decline in 2024, in big part due to the rise of AI-generated search results. Many queries no longer lead to click-throughs, and even when users click, it is hard for companies to get more context on searches made within apps like ChatGPT or Perplexity. The answer to this problem…

‘It’s dumb to IPO this year’: Databricks CEO explains why he’s waiting to go public

Databricks just closed one of the largest funding rounds ever, raising a staggering $10 billion in fresh capital. Naturally, technology investors were quick to ask what this means for the company’s highly anticipated IPO. During an event in San Francisco on Tuesday night, Databricks CEO Ali Ghodsi explained why he’s waiting until at least 2025…

Salesforce plans to hire 2,000 people to sell its AI products

Cloud software giant Salesforce looks to hire thousands of new sales people to sell its AI tools to customers. The company plans to hire 2,000 new sales representatives, according to CNBC, which cited remarks from CEO Marc Benioff at a company event Tuesday. This doubles the hiring plans that Benioff told Bloomberg last month. Benioff…

The AI Fix #29: AI on OnlyFans, and the bot that wants to be a billionaire

In episode 29 of The AI Fix, an AI company makes the bold step of urging us to “stop hiring humans”, Graham is wrong about GB AI, parents prepare their kids for the imminent Moxie-mageddon, Google releases Gemini 2.0, and a robot is found dead at work and nobody knows why. Graham inspects the AI…

OpenAI says it has no plans for a Sora API — yet

OpenAI says it has no plans to release an API for Sora, its AI model that can generate reasonably realistic videos when provided with a text description or reference image. During an AMA with members of OpenAI’s dev team, Romain Huet, head of developer experience at OpenAI, said that a Sora API isn’t in the…

AI boom masks fundraising struggles for non-AI startups

Earlier this year, IVP general partner Tom Loverro, proclaimed that the post-pandemic downturn is over, and companies that made it this far should prioritize growth over cost-cutting. Yet, the companies still struggling to raise their next round of financing at a higher valuation or survive altogether could still be in the thousands, according to Brian…

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