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Fisker collapsed under the weight of its founder’s promises

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Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here.

Over the past eight years, famed vehicle designer Henrik Fisker suggested his EV startup would deliver on a lot of promises, but none came true. As Fisker looks for an unlikely rescue, employees told TechCrunch that the blame rests largely on the shoulders of the husband-and-wife team who steer the company.

This week also had a major disturbance in the fintech space. After years of missteps and struggles, the banking-as-a-service fintech Synapse officially went bankrupt. Based on Synapse’s filings, as many as 100 fintechs and 10 million end customers could have been impacted by the company’s collapse.

Elon Musk just got a lot of cash for xAI. The AI startup raised $6 billion at an $18 billion pre-money valuation as it aims to compete with OpenAI, Microsoft and Alphabet.

In other big money moves, Google is investing nearly $350 million into Flipkart. The new investment gives the Walmart-owned Indian e-commerce startup a valuation of $36 billion. Google, which reaches more than half a billion people in India, identifies the South Asian nation as a key overseas market. 

News

Sam Altman walking away from a dissolving OpenAI logo
Image Credits: Darrell Etherington with files from Getty under license

Was Sam Altman fired from Y Combinator?: Paul Graham is setting the record straight. In a series of posts on X, the Y Combinator co-founder brushed off claims that Sam Altman was pressured to resign in 2019 due to potential conflicts of interest. Read More

Spotify doles out Car Thing refunds: Spotify is facing backlash over its decision to discontinue support for its in-car streaming device, Car Thing. Spotify has now instituted a refund process, but some users are asking the company not to brick their devices. Read More

Are earbuds the future of AI hardware?: Unlike generative AI gadgets like Humane’s Ai Pin and Rabbit’s R1, Iyo is aiming to build its technology into an already successful category: the Bluetooth earbud. Read More

Firefly forges on: On the heels of personal tragedy, the Tel Aviv-based startup has raised $23 million for its “infrastructure as code” solution to the growing issue of cloud asset management. Read More

Is Apple going to “sherlock” Arc?: Apple is reportedly planning to release a new technology called “smart recaps” in iOS 18, which appears to closely mimic Arc Search’s innovative “Browse for me” functionality. Read More

Misinformation is so back: A pair of new studies offers evidence that misinformation on social media has the power to change people’s minds. Find out who was most responsible for the vast majority of “fake news” in the studied time periods. Read More

AI models have favorite numbers too: Engineers at Gramener performed an experiment where they asked several major LLM chatbots to pick a random number between 0 and 100 — and the results were fascinating. Read More

Mistral unveils coding model: The French AI startup has released its first generative AI model for coding, dubbed Codestral, which is designed to help developers write and interact with code. Read More

Say hello to meme tech: Is it time to disrupt the meme industry? With Meme Depot, founder Alex Taub aspires to build a comprehensive archive of any meme imaginable with a crypto-focused business model. Read More

AI comes for tutors: The arrival of AI bots is posing a threat to long-established tutoring franchises and professional tutors, and the leading apps are from China. But do they actually help students learn? Read More

Analysis

onyx motorbikes-james Khatiblou
Image Credits: Bryce Durbin

What happens to a company when its founder dies?: Onyx Motorbikes was already in trouble — and then its 37-year-old owner passed away unexpectedly with no will or succession plan, leaving behind millions of dollars in debt. Rebecca Bellan reports on how the ensuing battle for control has put Onyx in legal limbo. Read More

The ‘edgelords’ at OpenAI: Meredith Whittaker has some candid thoughts about the current leadership at OpenAI. Mike Butcher sat down with the Signal president to discuss what she describes as a disrespectful “frat house” contingent of the tech industry in a wide-ranging conversation. Read More

Don’t expect IPOs from these startups: While 2024 is looking to be a better year for tech startups going public, there’s still a number of high-profile companies that are wanting to wait just a little bit longer. From Plaid to Figma, Rebecca Szkutak rounds up the companies that aren’t itching to go public just yet. Read More

More TechCrunch

Payments infrastructure firm Infibeam Avenues has acquired a majority 54% stake in Rediff.com for up to $3 million, a dramatic twist of fate for the 28-year-old business that was the…

Rediff, once a pioneer of internet services in India, sells majority stake for $3M

The ruling confirmed an earlier decision in April from the High Court of Podgorica which rejected a request to extradite the crypto fugitive to the United States.

Terraform Labs co-founder and crypto fugitive Do Kwon set for extradition to South Korea

A day after Meta CEO Mark Zuckerberg talked about his newest social media experiment Threads reaching “almost” 200 million users on the company’s Q2 2024 earnings call, the platform has…

Meta’s Threads crosses 200 million active users

TechCrunch Disrupt 2024 will be in San Francisco on October 28–30, and we’re already excited! Disrupt brings innovation for every stage of your startup journey, and we could not bring you this…

Connect with Google Cloud, Aerospace, Qualcomm and more at Disrupt 2024

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the…

A comprehensive list of 2024 tech layoffs

Intel announced it would layoff more than 15% of its staff, or 15,000 employees, in a memo to employees on Thursday. The massive headcount is part of a large plan…

Intel to lay off 15,000 employees

Following the recent lawsuit filed by the Recording Industry Association of America (RIAA) against music generation startups Udio and Suno, Suno admitted in a court filing on Thursday that it did, in…

AI music startup Suno claims training model on copyrighted music is ‘fair use’

In spite of a drop for the quarter, iPhone remained Apple’s most important category by a wide margin.

iPad sales help bail out Apple amid a continued iPhone slide

Molly Alter wears a lot of hats. She’s a mocumentary filmmaker working on a project about an alternate reality where charades is big business. She’s a caesar salad connoisseur and…

How filming a cappella concerts and dance recitals led Northzone’s newest partner Molly Alter to a career in VC

Microsoft has a long and tangled history with OpenAI, having invested a reported $13 billion in the ChatGPT maker as part of a long-term partnership. As part of the deal,…

Microsoft now lists OpenAI as a competitor in AI and search

The San Jose-based startup raised $60 million in a round that values it lower than the $500 million valuation it garnered in its most recent round, according to multiple sources.

Sequoia-backed Knowde raises Series C at a valuation cut

Self-driving technology company Aurora Innovation is looking to raise hundreds of millions in additional capital as it races toward a driverless commercial launch by the end of 2024.  Aurora is…

Self-driving truck startup Aurora Innovation to sell up to $420M in shares ahead of commercial launch

X (formerly Twitter) can no longer be accessed in the Mac App Store, suggesting that it has been officially delisted.  Searches for both “Twitter” and “X” on Apple’s platform no…

Twitter disappears from Mac App Store

Google Thursday said that it is introducing new Gemini-powered features for Chrome’s desktop version, including Lens for desktop, tab compare for shopping assistance, and natural language integration for search history.…

Google brings Gemini-powered search history and Lens to Chrome desktop

When Xiaoyin Qu was growing up in China, she was obsessed with learning how to build paper airplanes that could do flips in the air. Her parents, though, didn’t have…

Heeyo built an AI chatbot to be a billion kids’ interactive tutor and friend

While the company was awarded a massive, $4.2 billion contract to accelerate Starliner development in 2014, it was structured as a “fixed-price” model.

Boeing bleeds another $125M on Starliner program, bringing total losses to $1.6B

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Summer road…

Anthony Levandowski bets on off-road autonomy, Nuro plots a comeback and Applied Intuition gets more investor love

Google’s new features include Gemini in BigQuery and Looker to help users with data engineering and analysis.

Google Cloud expands its database portfolio with new AI capabilities

Rad Power Bikes, the Seattle-based e-bike startup that has raised more than $300 million from investors, went through another round of layoffs in July, TechCrunch has exclusively learned. This is…

VC darling Rad Power Bikes hit with another round of layoffs

Five years ago, as robotaxis and self-driving truck startups were still raking in millions in venture capital, Anthony Levandowski turned to off-road autonomy. Now, that decision — which brought the…

Why Anthony Levandowski returned to his off-road autonomous vehicle roots with AV startup Pronto

Commercial space station company Vast is building a private microgravity research lab as part of its wider Haven-1 station plans. The module is set to launch no earlier than the…

Vast plans microgravity lab on its Haven-1 private space station

Google Cloud is giving Y Combinator startups access to a dedicated, subsidized cluster of Nvidia graphics processing units and Google tensor processing units to build AI models. It’s part of…

Google Cloud now has a dedicated cluster of Nvidia GPUs for Y Combinator startups

StackShare is one of the more popular platforms for developers to discuss, track, and share the tools they use to build applications.

Open source startup FOSSA is buying StackShare, a site used by 1.5M developers

Featured Article

Indian startups gut valuations ahead of IPO push

Ola Electric and FirstCry are set to test investor appetite with public listing, both pricing their shares below their previous valuation asks.

Indian startups gut valuations ahead of IPO push

The European Union’s risk-based regulation for applications of artificial intelligence has come into force starting from today.

The EU’s AI Act is now in force

The company also said it has received regulatory clearance to start Phase 2 clinical trials for a new drug in the U.S. later this year.

Healx, an AI-enabled drug discovery platform for rare diseases, raises $47M

The European Commission (EC) has given the go-ahead to HPE’s planned megabucks acquisition of Juniper Networks.

EU greenlights HPE’s $14B Juniper Networks acquisition

Meta, which develops one of the biggest foundational open source large language models, Llama, believes it will need significantly more computing power to train models in the future. Mark Zuckerberg…

Zuckerberg says Meta will need 10x more computing power to train Llama 4 than Llama 3

Axle Energy is a B2B, back-end infrastructure business focused on connecting flexible assets, such as electric vehicles and home batteries, to energy markets that aren’t otherwise available for consumers to…

Axle Energy’s sprint to decarbonize the grid lights up with $9M seed led by Accel

OpenAI CEO Sam Altman says that OpenAI is working with the U.S. AI Safety Institute, a federal government body that aims to assess and address risks in AI platforms, on…

OpenAI pledges to give U.S. AI Safety Institute early access to its next model