Tuesday, February 11, 2024

Welcome to TechCrunch AM! This morning, we've got some words of warning about generative AI, notes on Musk's unsolicited OpenAI bid, and the EU's plans for the bloc's own AI compute capacity. We've also got details of fresh funds for fintech startups, a Russian hacker takedown, Archer Aviation's defense tech plans, JD Vance's stance on AI, YouTube's growing popularity on TV, and more. Let's dive in! — Rebecca

TechCrunch Top 3

Image Credits: Jesse Grant/The Hollywood Reporter / Getty Images

1. Musk's enablers: Elon Musk is leading a group of investors in an unsolicited bid to buy OpenAI for $97 billion. TC's Julie Bort has a rundown on these investors, most of whom are firmly in Musk's orbit. Read More

2. Evolving backwards: Researchers at Microsoft and Carnegie Mellon have found that using generative AI deteriorates critical thinking skills and makes us dumber. Today's society really can't afford to lose any more of its cognitive faculties. Read More

3. Show me the money: The EU is courting the private sector to step up its compute capacity for training large AI models and establish data sovereignty. EU President Ursula von der Leyen said the region's developers need access to powerful enough infrastructure to scale their innovations at home rather than defecting to the Valley. Read More

A Message from DealMaker

Raising millions without VC – Live on Feb 20

Big raises. No gatekeepers. Founders are bypassing traditional funding barriers and raising millions on their terms by going directly to investors online. At DealMaker's webinar on Feb 20, get the inside track from pioneers like EnergyX ($88M raised) and learn how to take control of your next raise.

Morning must-reads

Image Credits: Kyle Grillot/Bloomberg / Getty Images

🔥 One person's disaster is another's startup opportunity. As insurance companies stand to lose billions from disasters like the LA fires, Comulate has raised $20 million to expand its tools that help insurance companies manage billing and revenue operations. Read More

🦄 Growing another horn: Zeta, which provides software to banks and fintechs, has raised a $50 million round at a $2 billion valuation. The fresh investment into the Indian startup comes from American healthcare company Optum – strange bedfellows, but one to watch. Read More

🛠️ Takedown Tuesday: An international law enforcement operation has arrested four Russian nationals who participated in more than 1,000 ransomware attacks worldwide. They've been linked to 8base, an affiliate of the Phobos ransomware-as-a-service operation. Read More

🔫 Defensive maneuvers: Archer Aviation is doubling down on defense applications for its eVTOLs. The electric aviation startup just secured $300 million from institutional investors to further its mission to co-produce flying warcraft with weapons manufacturer Anduril. Read More

🧑‍🌾 Silicon Valley Elegy: At the AI Action Summit in Paris, JD Vance sought to reinforce the U.S.' dominance in AI and encourage leaders to be less risk averse, regulation and AI safety be damned. He said, "American AI will not be co-opted into a tool for authoritarian censorship," — the argument that might carry more weight if Trump weren't suing media outlets that disagree with him. Read More

A Message from West Monroe

The High-Tech and Software Industry's 2025 Roadmap

An eye toward growth, reimagined data and the AI transition: What's trending

Learn More

Around the web

📺 Is YouTube the new TV? That's what the streaming platform's CEO Neal Mohan is calling it, saying TV screens have officially overtaken mobile as the "primary device for YouTube viewing in the U.S.," per The Hollywood Reporter. Read More

👀Tesla gets major competition: Chinese EV maker BYD is set to give Tesla a run for its money in China. The automaker has unveiled a new suite of automated driving capabilities that are usually reserved for high-end EVs, but will make it onto BYD's entire lineup, including its sub $10,000 hatchback, per The Financial Times. Read More

🔍 Don't believe everything you read: The BBC found that more than half of AI-generated answers from ChatGPT, Copilot, Gemini and Perplexity about news and current affairs had "significant issues" like creating distortions, factual inaccuracies, and misleading content. Good thing AI is also destroying our critical thinking faculties! Read More

Before you go

🌎 Gulf of Whatever: It's official. Google Maps has renamed the Gulf of Mexico to the Gulf of America (only for folks in the U.S.), because for some reason, this matters to American pride in a way that's reminiscent of how dogs like to mark territory. Read More