Friday, March 7, 2025

Welcome to TechCrunch AM! This morning, we've got two space launches that didn't go as planned and one that did; the DOJ's probe into Scale AI's labor practices; the limits of today's AI; more funding for defense tech; Larry Page's new venture; ransomware scams, and more. Let's dive in! — Rebecca

TechCrunch Top 3

Image Credits: SpaceX

1. Starlight, starbright: SpaceX's Starship spiraled out of control during a test flight yesterday, marking the second launch in a row that the rocket has failed to make it to orbit. Once again, the FAA had to halt flights, this time into major Florida airports, cautioning against "space launch debris." Read More

2. Not a good look: Scale AI, which relies heavily on gig workers to do essential AI work like data labeling, is being investigated by the Department of Labor over potential noncompliance with a federal law that regulates unpaid wages, misclassification of employees as contractors, and illegal retaliation against workers. Read More

3. Sheeple: Hugging Face co-founder Thomas Wolf is worried that AI is turning into "yes-men on servers." He said that the current pace of AI development won't yield Nobel Prize-winning AI because it doesn't generate any new knowledge by connecting previously unrelated facts. Read More

Morning Must-Reads

Image Credits: Intuitive Machines

🌝 Getting tipsy: Intuitive Machines has landed its second spacecraft, Athena, on the moon, but the ship didn't stick the landing. Like the last lunar lander a year ago, this one appears to have tipped over on its side. That could get in the way of the rest of Intuitive Machines's mission. Read More

💥 There's always money for defense: San Diego defense tech startup Shield AI has raised $240 million at a $5.3 billion valuation. The startup builds drones and other AI-powered military systems, and its Hivemind software enables fighter jets and drones to fly autonomously. Read More

🗣️ On the up: OpenAI's ChatGPT has doubled its weekly active users in just six months after releasing new models and functionality, including GPT-4o, Advanced Voice Mode, and its o1 model series. Read More

🏭 Look who's back: Google co-founder Larry Page is reportedly back with a new startup called Dynatomics, which uses AI to create "highly optimized" designs for objects to improve product manufacturing. Read More

🚨 Even ransomware gangs get impersonated: The FBI is warning that scammers are impersonating the BianLian ransomware gang to get U.S. corporate executives to pay up. The fake ransom notes claim that hackers have gained access to an organization's network to steal sensitive data, and threaten to publish said data. Read More

Around the Web

🪙 Rules? What rules!? Trump's crypto project – AKA money made from sales of the $TRUMP memecoin after it was launched in January – has made at least $350 million, per The Financial Times. Ethics experts say the sale of the tokens allows for anonymous donations to the president while exploiting retail investors. Read More

🇫🇷 Space sovereignty: Europe has had a win in its attempts to wean off its reliance on SpaceX. A rocket from French aerospace company Arianespace successfully deployed a high-res reconnaissance satellite into orbit for the French military, reports Ars Technica. Read More

🍔 Super-sized AI: Ever a symbol of America, McDonald's is embracing tech and AI. The fast food chain will transform its restaurants with internet-connected kitchens, AI-enabled drive-throughs, and AI-powered tools for managers to ensure more uptime for machines, increased order accuracy, and more, per The Wall Street Journal. Read More

Before You Go

Image Credits: Bryce Durbin / TechCrunch

✊ Free speech! HCRG, a British private healthcare giant, isn't happy with a U.S.-based independent cybersecurity journalist who reported on a recent cyberattack at the company. It's now demanding that DataBreaches.net take down its reporting on the ransomware attack, to which the reporter replied, more or less, 'Nah, I'm good.' Read More