Top News | Reddit sues Perplexity: In a suit targeting three data scrapers and TWiST500 giant Perplexity, Reddit alleges that companies are going around its protections to scrape and sell, or use its material. Previously, Reddit sent Perplexity a cease and desist letter, leading to the AI search provider saying it would, in fact, cease and desist. However, they’ve allegedly been caught in the act via honeypot, leading Reddit to allege that the Comet browser maker is still somehow getting around its guardrails. Reddit is building a search product that may compete with Perplexity, in time. Amazon swaps robots for humans: Amazon employs north of 1.5 million people, a multiple of the staff employed by its Mag7 peers. But the era in which Amazon needs so many humans to staff its warehouses could be waning. Reporting (based on internal Amazon documents concerning its investments in automation) suggests that the company could “avoid hiring more than 160,000 people in the United States” by 2027, and as many as 600,000 by 2033. That Amazon is interested in automation is hardly news. The company debuted a new foundation model for its robots earlier this year, after all. What’s notable is that it’s expecting such massive efficiency gains so soon. Sesame raises $250M: Since emerging from stealth earlier this year, AI startup Sesame’s voice demos — Maya and Miles — generated over five million minutes of conversation. Now, the company raised a nine-figure round to keep working both conversational AI and hardware to deliver the experience. Sesame, like Meta and Snap, wants to sell smart glasses that can bring a user’s personal AI along with them. (Someone is going to crack this market; may it be a startup.) Voice chat with AI has proved to be a massive opportunity, with fans consuming massive amounts of the stuff. So much, in fact, that when OpenAI deprecated its 4o model, there was a wave of complaint from users who had “befriended” the model, or whatever the AI-equivalent of companionship is.
| TWiST 500 | Sesame is already on the TWiST500, so we won’t be adding it to our lists. But one name that might grab one of the last 50 or so slots ranks among most economically exciting startups of the moment: ShopMy. In case you aren’t familiar, the company works in the influencer marketing space, connecting hand-picked creators with brands who need meaningful spokespeople with sizable audiences. | The creator boom is behind us (2020-2022), but the underlying market is not. Sure, the center of influencer gravity has flipped from Instagram to TikTok, but it’s still there. And ShopMy, which just raised $70 million at $1.5 billion valuation, is proof of the point. | ShopMy lets brands offer commissions and bonuses to influential creators, which in turn drives more than $1 billion worth of yearly turnover. Impressive? Certainly, but without growth, ShopMy wouldn’t be worth 1.5x GMV. So how quickly is ShopMy growing? The startup reports “200% revenue growth year over year” along with “sustained profitability since 2024.” | That’s tasty for venture players and growth equity alike. Avenir led the round, with Bain, Bessemer, and Menlo chipping in, too. | ShopMy works with fewer than 200,000 creators and influencers, underscoring how the power law rules everything around us. They’re not making their daily bread by working with all creators; instead, ShopMy leans on a far smaller cohort that it thinks have a better shot at delivering partner ROI. I don’t have a firm view on the direction or growth of popular folks hawking goods on social media, but I do think that it’s a large enough market today for ShopMy to keep growing for some time yet. And its backers agree. — Alex | A message from Perspective AI | Surveys? They never capture what customers are really thinking. That’s why we use Perspective AI. Real insights, straight from your customers. AND the first two months are on us. Just go to getperspective.ai/twist. | This Week in Startups | E2196: We’ve got a special Tuesday ep this week, in which Alex sits down with Magic School founder (and former school principal!) Adeel Khan. Though much of the media focus has been on students using AI to cheat on their homework, Khan argues that AI tools can make teachers much more effective, while keeping students more engaged and even inspired. He walks us through the promise and challenges of designing a virtual assistant teacher. PLUS a fascinating Gamma pitch from On the Fly Energy and Eric Glyman from Ramp joins us for a round of Founder Q&A! | E2195: Is AI a bubble, or is the market just extremely frothy? Jason suggests implosion is not imminent, and we’re merely going from macchiato levels back down to a flat white. Hear his reasoning on a brand-new TWiST. PLUS… Alex and Lon join for a discussion of AI slop and why people are so bad at recognizing it, and a preview of Jeremy Strong’s already-iconic performance as Mark Zuckerberg in the hotly-awaited “Social Network” sequel. | E2194: What is the deal with Deel? The HR and hiring startup is growing SO FAST, investors are willing to overlook the SpyGate allegations! Plus is the Mag 7 about to become the Mag 70? Why is legendary investor Roelof Botha so down on the potential of venture capital? How can startups use capital as a weapon? What are Claude’s new and improved skills? We answer these questions and more on a brand-new TWiST. | TWiST Partner Offers | Squarespace: Turn your idea into a beautiful website! Go to http://www.squarespace.com/twist for a free trial. When you’re ready to launch, use offer code TWIST to save 10% off your first purchase of a website or domain. Sentry: Your team should be focused on shipping features — not chasing down bugs. New users get 3 months free of the Business plan which covers 150k errors. Go to sentry.io/twist and use the code TWIST Pilot: Focus on your product, let Pilot handle your bookkeeping. Pilot provides the most reliable accounting, CFO, and tax services for startups and small businesses. Head to https://www.pilot.com/twist and get $1,200 off your first year.
| 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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