Top News | NY State is suing Zelle: New York’s Attorney General, Letitia James, filed a suit against the electronic payment platform this week, alleging that their failure to update safety features enabled more than $1 billion in fraudulent payments. According to James’ office, Zelle’s parent company — Early Warnings Services (which is co-owned by 7 major US banks) — were aware that the platform was vulnerable to fraud but did not employ basic safeguards nor remove bad actors from the system. Zelle representatives responded that 99.95% of overall transactions on the platform were fraud-free, and referred to the lawsuit as a “political stunt.” Pony AI continues growing: The Chinese autonomous vehicle company’s CEO, James Peng, confirmed this week that they’re on track to produce 1,000 Gen-7 Robotaxis by the end of this year, despite mass production kicking off just a few months ago. Though things are progressing well, the road only gets more treacherous from here. As CFO Leo Wang noted on the same earnings call, scaling a fleet from dozens to hundreds of robotaxis presents a vast array of fresh challenges, particularly when considering “safety and operation rigor.” Apple still has AI plans! According to Bloomberg, despite frequent delays and the ongoing Meta brain drain, development continues behind the scenes on not just Apple Intelligence but a variety of fresh AI-powered products and features. At the center of the hardware giant’s reported new AI strategy: a tabletop robot that serves as a “virtual companion.” The report also lists a new smart speaker (with a display), a home security system that can also automate basic tasks, and a more “lifelike” version of Siri. Will one of these be the magical new device or innovation that helps Cupertino get its groove back? Only time will tell…
| TWiST500 | Arguably the biggest story in all of tech this week is AI startup Perplexity’s unexpected offer to buy Google’s Chrome Browser for $34.5 billion. Obviously, there’s SOME method to Perplexity’s madness here. US District Judge Amit Mehta already ruled that Google has an unfair monopoly on internet search, and the company could be forced to part with Chrome anyway. | Plus, Perplexity recently released Comet, which brings LLMs to the forefront of the browser experience by adding a persistent virtual assistant to the sidebar. Those features combined with the distribution and familiarity of Chrome could prove a real counter to the market dominance and name recognition of, say, OpenAI’s ChatGPT. If Perplexity + Chrome was genuinely capable of displacing current market leaders like OpenAI, xAI, or Anthropic, Perplexity would ultimately be worth far more than a measly $35 billion. | Still, not everyone is taking the offer strictly at face value. In Spyglass, investor and writer M.G. Siegler suggests that this is all “clearly a marketing stunt,” reminding readers that Perplexity ALSO offered to buy TikTok back in January. (Siegler suggests Google will not be forced to sell Chrome, making the entire thing a non-issue.) | Bloomberg columnist Dave Lee also made the case today that Perplexity is just having fun, and that Google will not realistically be forced to part with its signature browser. He suggests that, in addition to attention, Perplexity may also be attempting to slyly influence Judge Mehta. A core tenet of Google’s antitrust defense is that keeping Chrome in-house is essential for the ongoing health of Chromium, the open-source project that powers a number of popular web browsers. Noting that Perplexity could take Chrome over from Google and continue developing it, or even IMPROVING it, pokes a serious hole in Google’s legal argument. | Regardless, if the goal was just grabbing headlines — and getting people more excited about Perplexity — then mission accomplished. On TWiST, we’ve talked about the company more over the last 3 days than in the 3 weeks prior, despite Jason’s fascination with the Comet browser. And that’s without even mentioning that the company is raising a fresh funding round at a healthy $20 billion valuation! – Lon | A message from Northwest Registered Agent | Starting your business should be simple. With Northwest Registered Agent, you can form your entire business identity in just 10 clicks and 10 minutes. From LLCs to trademarks, domains to custom websites, they’ve got you covered. Get more privacy, more options, and more done—visit https://www.northwestregisteredagent.com/twist today! | This Week in Startups | E2163: Jason, Alex, and Lon are back together and discussing… what else… GPT psychosis! Is it real? What are the biggest warning signs? PLUS, thoughts on Trump’s Chinese export fees on AMD and Nvidia, why Jason was so upset at the NY Times exposé on Mark Zuckerberg’s Palo Alto compound, a new magnet for rare-earth minerals, and much much more. | E2162: Jason and Lon are flying solo on this special TWiST edition! They’re talking about why Apple seems to have lots its innovative edge, and whether or not it’s time for Tim Cook to make for the exit. PLUS the new GPT-5 is here and it’s… kind of not that exciting, Ripple acquired Rail, Bumble’s running out of steam, and much much more. | E2161: On a huge, action packed TWiST, Jason and Alex investigate Luckin Coffee’s (potentially CCP-backed?) takeover of Manhattan, explain why Disney is sunsetting the iconic Hulu streaming app, probe the difference between open-weight and open-source AI models, look ahead at OpenAI’s big GPT-5 announcement, PLUS they welcome Zach Dive of Adam.new to explain why he made a deepfake ad starring JCal. The nerve! | TWiST Partner Offers | Vouched: Turn your AI infrastructure into production-grade software with Know Your Agent from Vouched. Check it out yourself at http://vouched.id/twist. Trust for agents that’s built for builders like you. Coda: Coda empowers your startup by bringing words, tables, and teams together. Strategize, plan, and track goals effectively with all your valuable data in one place. Go to https://www.coda.io/twist to get started for FREE and get 6 free months of the Team plan. Vanta: Compliance and security shouldn't be a deal-breaker for startups to win new business. Vanta makes it easy for companies to get a SOC 2 report fast. Get $1,000 off for a limited time at http://www.vanta.com/twist.
| Angel University is Back! | Jason and Mike Savino are hosting our next virtual Angel University workshop on Tuesday, October 7. Jason will share proven strategies he’s used to invest $200M+ in over 500 startups. Whether you’re new to angel investing or looking to sharpen your skills, this is your chance to learn directly from one of the most active angel investors in the world. Register now at angel.university! | TWiST wants to hear from YOU! | Along with Perspective AI, we’ve created a new AI-powered survey inviting our listeners to give us their feedback on the show, and specifically what kinds of topics they want to hear about on future episodes. Please take a few minutes to chat with Perspective’s friendly AI agent and share your thoughts on our podcast! We’d love to hear from you. | Founder U is coming to the MENA region! | Our 12-week pre-accelerator—designed to help early-stage founders build and grow—kicks off this fall in Saudi Arabia. The first cohort launches in Riyadh on November 3rd, followed by in-person and virtual sessions throughout the program. Founders in MENA: this is your chance to turn your idea into a business and get world-class insights on building a successful startup. Apply today: https://mena.founder.university/ | SF Live-Work Space Now Available | Need a flexible living and working environment in San Francisco? This thoughtfully designed loft-style residence at 787 Bryant St., the heart of the vibrant SOMA district and the city’s creative hub, is now available for rent or purchase. Check the listing for more details. | The TWiST500 newsletter is the new, updated, and improved TWiST Ticker. |
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