Issue #59: Everyday AI

Spotlight

The legendary designer of the iPhone joins forces with OpenAI, aiming to reshape how we interact with artificial intelligence.

In a bold move that underscores its growing influence, OpenAI has acquired io, the secretive device startup co-founded by Sam Altman and Jony Ive, in a $6.5 billion all-equity deal. This partnership brings Ive—best known as the iconic designer behind Apple’s products—into OpenAI’s fold through his design firm, LoveFrom. The goal? To reimagine how people interact with artificial intelligence and create hardware that seamlessly integrates with the company’s advanced models. This acquisition marks a significant step for OpenAI as competitors like Google scramble to keep pace in the AI hardware race. Learn more.

Key Highlights:

• OpenAI acquires Jony Ive and Sam Altman’s secretive device startup, io, in a $6.5 billion all-equity deal.

• Ive and his design firm, LoveFrom, will lead creative and hardware design efforts for OpenAI.

• The partnership targets the creation of new device categories to redefine how humans connect with AI systems.

• OpenAI's move intensifies competition with Google and other AI leaders exploring hardware-software integration.

• The acquisition demonstrates OpenAI’s focus on creating consumer-friendly AI experiences.

OpenAI’s strategic alliance with Jony Ive demonstrates the next evolution in the AI industry—melding top-tier hardware design with robust software capabilities. As the race to dominate AI intensifies, this collaboration positions OpenAI to leap beyond purely software-based models and into broader, more integrated ecosystems. It also signals a major shift as tech companies increasingly recognize that accessible, user-centric design is crucial to mainstream adoption of AI. With innovation heating up across the sector, from niche AI roll-ups to health-focused startups, the bar for impactful AI applications has never been higher.

Quick Bites

Here are some interesting quick news items from the tech world:

Khosla Ventures Gets Creative with AI-Powered Business Roll-Ups

Venture capital is flipping the script: instead of backing startups, firms like Khosla Ventures are acquiring established businesses—think call centers and accounting firms—and supercharging them with AI. Dubbed “AI-infused roll-ups,” this experimental strategy aims to streamline operations and boost profitability in traditionally tech-light industries. It’s a fascinating twist on the typical VC playbook that could redefine how mature businesses grow in the AI era. Learn more.

$4M Seed Round Flushes Throne AI Startup Into the Spotlight

Gut health has entered the 21st century—via AI and toilets. Throne, an Austin-based startup, raised $4M in a serendipitous seed round led by Moxxie. Their AI-powered toilet device uses computer vision (yes, cameras in the bowl) to analyze your gut health, promising insights for better health management. If you've ever thought your bathroom routine needed a tech upgrade, this one’s for you. Let’s just say the data “sinks” in. Learn more.

LM Arena Raises $100M to Sharpen AI Leaderboards

Crowdsourcing meets AI benchmarks with LM Arena. The organization, known for running popular leaderboards used by major AI labs, just raised $100M in seed funding, boosting its valuation to $600M. Investors include a16z and UC Investments, fueling LM Arena’s quest to make AI testing more transparent and competitive. If you’ve ever been curious about which AI models reign supreme, this is where it all goes down. Learn more.

Filed Raises $17M to Rescue Us from Tax Prep Hell

Tax season might finally become less painful. Filed, a startup automating the drudgery of tax preparation, has raised $17.2M to tackle a shrinking CPA workforce and bring relief to individual taxpayers and businesses. Their AI-driven platform helps navigate complex filings with fewer headaches for the rest of us. The CEO calls it a “genuine crisis,” but hey, who wouldn’t mind a tech assist come tax time? Learn more.

Siro Lands $50M to Coach Sales Reps with AI

AI has been taking notes in meetings; now it’s in the field. Siro just raised $50M in a Series B round led by SignalFire to expand its AI-powered coaching solution for sales reps. Think of it as a personal trainer—but for sales. The platform analyzes on-the-ground customer interactions, offering actionable coaching tips to close deals faster. Finally, some AI built to get those sales commissions flowing! Learn more.

Startup Shutdown Of The Day :(

Builder.ai collapses into insolvency

Builder.ai, a Microsoft-backed UK tech unicorn aiming to simplify app development, has filed for insolvency. Despite raising an impressive $195M and being a supposed game-changer for no-code software solutions, operational challenges and unsustainable growth caught up to the company, leaving behind questions about the viability of its once-promising vision.

Key Points:

• Founded in 2016 with backing from Microsoft and Lakestar.

• Raised a total of $195M in funding, achieving unicorn status.

• Specialized in no-code app development solutions for businesses.

• Struggled with high operational costs and scalability issues.

• Impact leaves customers uncertain about long-term app support.

Lessons for Founders:

Builder.ai's collapse raises important questions about the sustainability of high-growth no-code platforms. Founders should pay close attention to unit economics, scalability, and cash flow management, especially post-unicorn status. While aiming to democratize app development is noble, execution must match vision. This case reminds us that even staggering funding isn't a safeguard against operational missteps. It's a cautionary tale for startups to balance aspiration with solid financial planning. Learn more.