This week, I've been thinking about what artificial intelligence means. One of the most vulnerable parts of this puzzle is the training data. We already know that you can see if your images are used in the training dataset, and many of the training datasets there are... Fakes at best. Some startups are trying to build datasets specifically trained on licensed data, and human artists can be very grumpy when big-name studios use AI to generate art.
An interesting curveball realized that even evaluating training data can be challenging, as the researchers found that machine Turkish workers — theoretically human workers doing tasks that machines can't — are reportedly using AI tools. That's great for some tasks, but not great if the text they generate is meant to be used as a rubric to measure AI-generated text tools. The old calculation maxim of "garbage in, garbage out" still exists. If you can't trust the training data, you can't trust the output (TC+).
From a startup's perspective, AI is continuing to shine — Amazon's AWS is boldly supporting this emerging trend by funding generative AI initiatives through a $100 million initiative.
The highest and deepest lows of transportation
It was a bad week with the submersible missing and a series of reports that followed suggested perhaps the company didn't have the most reliable safety record. The submarine exploded under the overwhelming pressure of the ocean, killing five passengers and raising new questions about the whistleblower's role in the land of entrepreneurship. The OceanGate underwater vessel, which uses a carbon fiber hull, "was not rated for Titanic depth," the director of operations turned to the whistleblower claimed. It shows that while startups are known for "moving fast and breaking the rules," perhaps this principle doesn't fully extend to critical equipment where life and death matter.
A bright spot in transportation this week was a breakthrough in battery manufacturing. It turns out that half of the energy required to make lithium-ion batteries is used to dry certain components of the battery. Volkswagen has just proposed a new process (TC+) that eliminates this requirement and greatly reduces the cost and time required to make batteries that power electric vehicles.
Hackers want to hack
Whether in the startup space or elsewhere, we've seen a dramatic change in security news over the past few weeks. We've already had a lot of reports about Reddit slowly collapsing due to allegations of a new API launched by the social media giant not long ago. But one story I particularly want to highlight is that hackers threaten to release confidential data stolen from Reddit unless the company pays a ransom demand and reverses its controversial API price increase. It seems strange that hackers are demanding policy changes and cash. If given one or the other, I wonder which one they would choose – and how that speaks volumes about the power of hacktivism.
Malicious hacking has been in the news for a long time, but I find particularly interesting what we're seeing more and more startups trying to help solve this problem, whether it's hardening API security, source data security, or IoT devices. As hackers have become more sophisticated, and as computer security vulnerability exploiting exploration has become more common (just last week, a ransomware gang listed the first victims of a massive MOVEit hack, including Bank of America and universities), opportunities for startups have increased. However, as Alex recently explored, it seems like a misstep for venture capital firms not to line up on the block (TC+) to fund the current generation of cybersecurity companies.
You're so rich you don't even know
Fintech, what are we going to do with you? Even in a money-themed industry, verticals continue to explode with investment. Paro raised $25 million to match independent financial experts with companies, with open-banking fintech company Volt just raising a giant round of funding at a valuation of more than $350 million, and U.S. immigration digital bank Majority closing nearly $10 million as it expanded its operations in Texas.
It's not sexy, but investors know that fintech — once a company gains a lot of traction and a lot of customers — is interesting for two reasons: money never goes out of style, and there are merger-hungry multinational giants ready to buy a rising company. In terms of startup scale, the most recent example is Robinhood's recent acquisition of credit card startup X1 for $95 million. Nasdaq announced plans to acquire financial services software company Adenza for $10.5 billion.
It seems that they have money in their hearts.
- Wait, who do I pay for? Katherine reports that notary companies have rolled out certificates and are doubling down on ensuring secure (r) online transactions.
- That's it, no more fraud: Marianne reports that Plaid has launched a new collaborative network designed to share fraud intelligence.
Top read on TechCrunch this week
If you're struggling to raise capital, one of the three reasons investors keep snubbing you could be: the market may be too small, the team isn't good enough, or your plan simply doesn't make sense. In my latest article on TechCrunch+, I break down how VCs evaluate these things, and how they can fight back.
If you can't beat them with a tablet... : You can think outside the box. Brian reviewed the new Google Pixel tablet and concluded that it was all about the dock. It will be cut with Apple's iPad Pro look, the entry-level iPad.
Welcome to Streamberry: Netflix twins tailored for your worst nightmares. Lauren reported that Netflix launched a website based on the fictional streaming service in Black Mirror. At this point, don't miss what I wrote about how technology is unlocking the Netflix business model (TC+).
Entering the quantum realm: Frederick reports that Microsoft hopes to build a quantum supercomputer within 10 years. Maybe that's why they need that fusion reactor?