Techcrunch blog!: Microsoft's AI march continues

Tuesday, January 16, 2024

Welcome to the very first issue of TechCrunch AM, the best compilation of tech news from around the world that you'll read before brunch.

Our long-running Daily Crunch newsletter is being split into two starting today: one arriving in the morning (this one, written by yours truly), and one in the afternoon (TechCrunch PM), because we felt one newsletter was simply not enough to cover the breadth of startup, venture, and tech news out there. More here from TechCrunch Editor in Chief Connie Loizos on how our newsletters are changing in 2024!

And with that out of the way, let's get started!

– Alex

Why the future of AI for business is now

TechCrunch Top 3

Goodnotes buys Dropthebit: London-based note-taking app Goodnotes has acquired South Korean startup Dropthebit, which runs Thaw, a meeting and video summary tool. Notably this is not the first time that Goodnotes has gotten busy with its checkbook. The startup, which offers users tools like "AI-powered handwriting recognition," also invested $1.9 million into South Korea-based digital stationery company WeBudding last year.

Bad news for startup valuations: A survey of more than three dozen investors predicts that startup valuations are not heading for a banner year in 2024. Instead, valuation trends will break down according to sector and stage, VCs predict. But new founders should take heart: Seed valuations are expected to be the most durable. The further along your startup is, the less sunny the forecast is for your next fundraise.

Microsoft launches Copilot Pro: You and I can now subscribe to Copilot Pro, which brings enterprise-like generative AI features (think Office) to the masses. It costs $20 per month, and comes with priority access to the newest GenAI models underpinning Copilot, including OpenAI's GPT-4 Turbo. Why do we care? AI is going vertical thanks to startups, and horizontal thanks to big tech companies. No matter what bell you toll, AI is coming for your workday!

Image Credits: Goodnotes

Don't miss these

Apple may catch a break: Apple may get a full reprieve from the sales bans surrounding its newest Apple Watches thanks to a plan to disable pulse oximetry features on the devices. We don't think users will particularly mind the loss too much, but you can never tell how much Reddit will complain. For Apple, we're guessing being able to sell the Series 9 and Ultra 2 smartwatches is probably more important than that.

Spot Technologies raises $2M: El Salvador-based Spot has raised funding to build a software solution that turns security cameras into intelligent gadgets that can analyze consumer purchase and theft behaviors. Deep learning in security cameras? Welcome to the present, I suppose.

Kuda's secret 2023 raise: It appears Nigerian neobank Kuda quietly raised $20 million last year at a flat valuation to its last 2021 price tag ($500 million). TechCrunch snagged some fascinating performance data from the company as well, showing that pursuing fintech can still make for a growth story. It's also not a small achievement for a fintech company to defend a valuation from the crazy good times of 2021, we reckon.

For founders: If you are building a startup, we have lots for you this morning: How your customer acquisition costs can help determine whether you should launch a new product; the latest on climate tech incentives and capital flows; why micro funds are not doomed; and how to build a resilient SaaS company.

Closing out CES 2024: Another CES is behind us, so to send us off, here are TechCrunch's notes on age tech, and all the future of transport technology that stood out at the convention. Just don't look for anything sex-tech related — it makes CES blush.

You should definitely also read Mary Ann Azevdo's great interview with investor Jenny Fielding about startups' flight to quality. Also check out this Chain Reaction episode featuring Michael Sonnenshein, CEO of Grayscale, about the bitcoin spot ETF news. And then there's FedEx's new e-commerce platform, which feels either very early, or very late.

Image Credits: Darrell Etherington/TechCrunch

Rabbits are all the rage

AI hardware startup Rabbit recently said it has sold out of its fourth run of 10,000 units of its new gadget, the R1. At $199 apiece, that's no small amount of revenue. Perhaps consumer AI hardware is going to be bigger than we thought?