Top News | VCs amp AI investing in Q2: Venture capitalists invested $65 billion into American AI startups in the second quarter, up 33% from what they spent in Q1 2025, and more than five times what they invested before ChatGPT’s launch. That VCs invested large sums into AI startups is hardly a surprise. What is interesting to track is where the dollars are flowing. Past the foundation model companies which have been historically impressive fundraisers, startups that are deploying AI into more specific contexts are raising more and more capital. For example, Harvey AI’s focus on the legal profession raised $300 million at a $5 billion valuation in June — around four months after it raised $30 million at a $3 billion valuation. DeepSeek could lose the German market: A German regulatory body has requested that Apple and Google remove DeepSeek from domestic application marketplaces after it failed to provide the German government with “convincing evidence that German users' data is protected in China to a level equivalent to that in the European Union.” DeepSeek stores some user data in China, where boundaries between private data and government observation can prove thin. DeepSeek, a TWiST500 company known for its advanced, often inexpensive AI models, has also collected bans by parts of the United States government, at least on official devices. Microsoft’s AI chip dreams slip: After announcing a chip called the Maia 100 back in 2023, Microsoft got to work on its successors, called Braga, Braga-R, and Clea, according to The Information. But the same publication reports that Braga’s timelines have slipped to 2026, putting Microsoft at risk of missing the window in which the chip might be competitive with more generalized offerings from Nvidia. Microsoft is not alone in building its own chips for AI workloads — Amazon’s Trainium chips are helping crunch for Anthropic, while Google’s TPU’s have received regular updates including a major upgrade earlier this year.
| TWiST500 | The TWiST500 features a host of AI startups. Given our top news story today, that’s hardly a surprise. | But we’re also paying close attention to the inputs that the AI wave requires. That ranges from inference providers (Groq), to chips (Tenstorrent) to more exotic efforts like photonics (Lightmatter). And then there’s energy. | Meta this week announced two deals to purchase more than 1gw of “solar and wind power in Ohio, Arkansas, and Texas” per TechCrunch. That the hyperscalers are still hunting for energy capacity means that the startups we’re tracking that are working to meet just that demand are well-positioned. | The TWiST500 features companies from Exowatt, which wants to use solar power to store industrial heat, to General Matter, which wants to turbocharge domestic uranium enrichment, to modern nuclear power startups like Last Energy, and X-Energy. We also have our eye on several fusion startups, but those timelines are a bit further out. | All told, we’re racing to wrap up the first edition of the TWiST500, with 410 companies added and another batch brewing. So it’s nice to know that at least in one cohort of included concerns we’re right on target. — Alex | A message from INBOUND | Connect with visionary leaders like Dario Amodei and Amy Poehler at INBOUND 2025 September 3-5 in San Francisco, the epicenter of tech innovation, and transform your business strategy for the AI era. Use code TWIST10 for 10% off your General Admission ticket at inbound.com/register. | This Week in Startups | E2143: It’s an EPIC, legendary VC roundtable special this week, with Jason sitting down with Sequoia partner Doug Leone and Cyberstarts founder Gili Raanan for some insider, brutally honest insights on recruiting, working with first- and second-time founders, finding true market fit, the myth of early ARR, their early investments in Wiz, and much much more. Do not miss this episode! | E2142: On today’s show, we welcome the newest member of the TWiST Team: Anthropic’s Claude Sonnet 4 model. “Producer Claude” is helping us research interviews, plan segments, and even doing some live real-time fact checking for us. Plus Jason and Alex talk about Tesla’s robotaxi rollout, how AI is already taking people’s jobs, and Mark Zuckerberg’s sudden pivot into FOUNDER MODE. Plus Scott Hickle from Throne Science on the future of gut health. | E2141: It’s a Friday TWiST-apalooza, with Jason and Alex talking Meta’s aggressive AI strategy, Midjourney’s major recent advancements, the ongoing debate about copyright and AI model training, and Amazon CEO Andy Jassy’s cautionary memo. PLUS a visit from Giram Taitana of Doctours to talk about the growing field of medical tourism and why so many Americans are traveling overseas to get work done. | TWiST Partner Offers | | LAUNCH Accelerator | We’re hosting an in-person Demo Day for LA34 in SF on July 16 from 9a-12p PT, the latest cohort from Jason Calacanis’ Accelerator. | If you are an early-stage investor and interested in attending, please reach out to bianca@launch.co. | Want to Work for This Week in Startups? | We’re looking to fill two in-person sales positions at our Austin, Texas HQ! First, a high-performing Sales Executive to help us seek out and promote clients, sponsorships, branded content, and more. Plus an experienced Sales Manager to lead, coach, and scale our sales executive team, while setting performance goals. Love the podcast and have B2B sales experience? We want to hear from you! | 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. | Founder University | Applications are open for Founder University Cohort 11, a 12-week remote pre-accelerator program tailored towards navigating early-startup practices, building an MVP, and growing traction. Submit your application at Founder University— Cohort 10 will kick off Summer 2025! | The TWiST500 newsletter is the new, updated, and improved TWiST Ticker. |
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