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🔄 OpenAI failed to deliver the opt-out tool it promised by 2025
OpenAI has not delivered the promised "Media Manager" tool, which was intended to allow creators to control how their works are used in AI training data. Initially announced in May, the tool aimed to identify and manage copyrighted content but has reportedly not been prioritized internally. OpenAI has faced criticism over its current ad hoc opt-out methods, which many creators find inadequate.
The company is also dealing with multiple lawsuits from artists and creators claiming unauthorized use of their works. Despite missing its self-imposed deadline, OpenAI has not provided updates on the Media Manager's status or potential launch date. Experts express skepticism about whether such a tool could effectively address creators' concerns or resolve ongoing legal issues surrounding AI and intellectual property.
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📣 After ups and downs, food delivery startup Epicery closes shop
French food delivery startup Epicery is shutting down after nine years of operations, citing ongoing economic challenges and a negative EBITDA of -€4.69 million in 2023 on sales of €2.57 million. The company, which focused on premium groceries and local deliveries, struggled as inflation altered consumer spending habits.
Epicery had previously thrived during the COVID-19 pandemic and received a majority investment from Geopost in late 2021. However, recent developments in the food delivery market and increased competition led to its decline. Despite having around 25,000 recurring customers and 1,100 local shops, it couldn't achieve the scale needed as part of a larger corporate group.
Co-founder Édouard Morhange expressed pride in connecting local retailers with e-commerce, while Geopost has offered support to Epicery's employees in finding new roles. Although Epicery's model faced challenges, there is optimism among some stakeholders that similar ventures could succeed in the future.
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⚙️ Cleantech Funding Weakened In 2024
In 2024, cleantech funding has experienced a notable decline, reaching its lowest level in four years. While overall investment is down and deal counts have decreased, certain sectors like carbon capture and hydrogen are still seeing growth. Notably, major funding rounds occurred for companies such as Pacific Fusion, which raised $900 million for its fusion technology, and Intersect Power, which secured over $800 million for clean energy projects.
Despite the downturn in equity funding, there has been a shift towards debt financing, with several large debt deals collectively bringing in over $14 billion. This trend indicates a maturing market where infrastructure-heavy companies are opting for project finance.
Looking ahead, investors are cautiously optimistic, particularly regarding growth in energy efficiency and grid optimization, while anticipating potential policy changes under a new U.S. administration. The second half of 2024 showed stronger investor support, particularly for large funding rounds, suggesting a hopeful outlook for the future of cleantech investments.
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🍎 Apple pulls remaining Lightning-based devices from European stores
Apple has removed its last Lightning-based devices, including the iPhone SE and iPhone 14 series, from its online stores in Europe to comply with the EU's new common charging solution, which mandates USB-C ports. This directive, effective December 28, 2024, aims to reduce electronic waste and address market fragmentation.
The Lightning-based Magic Keyboard was also pulled from sale. While these devices are no longer available in the EU, they remain for sale in other regions. A new iPhone SE with USB-C and upgraded features is expected to be released in 2025. The directive also includes requirements for fast charging and improved labeling for consumer clarity.
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🚨 Terraform Labs co-founder Do Kwon will face fraud charges in the US
Do Kwon, co-founder of the collapsed cryptocurrency firm Terraform Labs, will be extradited from Montenegro to the U.S. to face federal fraud charges. Kwon is also facing charges in South Korea related to the crash of Terraform's cryptocurrencies, TerraUSD and Luna, which resulted in over $40 billion in investor losses.
Following a civil trial, Kwon and Terraform Labs were found liable for fraud by the U.S. Securities and Exchange Commission and agreed to pay $4.5 billion to settle the case. Kwon was arrested in March 2023 at a Montenegrin airport while attempting to fly to Dubai. The timeline for his extradition to the U.S. remains unclear.
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🔻 What We Learned About AI From 7 Active Startup Investors This Year
In 2024, venture funding for AI companies surged to $99.6 billion, an 80% increase from the previous year. Approximately one-third of this funding targeted foundation model companies, while the remaining two-thirds went to sectors influenced by AI, including healthcare, robotics, and autonomous driving.
Interviews with seven active AI investors revealed that AI is now a primary focus for many firms, with significant investments in applied AI. Investors are shifting their attention from infrastructure to applications that can significantly impact specific sectors. Concerns about AI accuracy and reliability were highlighted, with predictions for a blend of automated and human oversight in service roles.
Additionally, new funds dedicated to AI, like Menlo Ventures' $100 million Anthology fund, have emerged to support early-stage AI startups. Investors believe that generative AI can enhance productivity and transform service revenue into product revenue. Despite the current excitement, some investors anticipate a correction in the market as the AI revolution continues to evolve over the next decade.
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💰 Here’s the full list of 49 US AI startups that have raised $100M or more in 2024
This is a list of 49 U.S.-based AI startups that have raised $100 million or more in 2024, highlighting a vibrant funding landscape despite concerns about AI fatigue. In the third quarter alone, AI companies raised $19 billion, amounting to 28% of all venture funding.
Key highlights include:
- Elon Musk's xAI raised $6 billion in November, valuing the company at $50 billion.
- Liquid AI secured $250 million, reaching a valuation of $2.35 billion.
- Tenstorrent raised $693 million, achieving a valuation of $2.7 billion.
- Other notable rounds include $400 million for Physical Intelligence, $175 million for Sierra, and $1 billion for Safe Superintelligence.
There is an ongoing investor interest in AI, with significant rounds occurring throughout the year across a variety of applications, from enterprise solutions to healthcare technologies.
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🌐 Revenue-based financing startups continue to raise capital in MENA, where the model just works
There is a rising popularity of revenue-based financing (RBF) in the MENA region as startups seek non-dilutive funding alternatives amidst tougher venture capital conditions. CredibleX, a notable player, recently raised $55 million to provide working capital to small and medium-sized enterprises (SMEs) in the region.
RBF has gained traction because many SMEs struggle to access traditional banking capital. CredibleX partners with large aggregators, allowing SMEs to apply for loans through platforms like Talabat, streamlining the process by using historical sales data for quick credit decisions.
The model is particularly effective in high-income countries like the UAE, where SMEs benefit from direct repayment structures, making recovery easier for lenders. CredibleX aims to tap into a larger pool of SMEs and is regulated by the Abu Dhabi Global Markets, reflecting a growing trend of innovative financing solutions in the region.
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🔹 AI startups attracted 25% of Europe’s VC funding
In 2024, AI startups in Europe attracted 25% of the region's venture capital funding, totaling approximately $13.7 billion, according to Balderton Capital and Dealroom. This marks an increase from 15% four years ago, with several new unicorns emerging, such as Poolside and Wayve.
Despite a generally flat year for European venture funding, the value of AI companies in the region has doubled to $508 billion, now representing nearly 15% of the total tech sector. Notably, around 349,000 people are employed in AI roles in Europe, a 168% increase since 2020.
Balderton's James Wise emphasized that early-stage AI companies can raise significant funds in Europe, similar to the U.S., contributing to a thriving ecosystem. He also noted that generative AI tools have significantly improved productivity for many companies, indicating a positive trend for the future of AI in Europe.
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🔺 Apple might be working on a smart doorbell
Apple is reportedly developing a smart doorbell that may incorporate its FaceID technology to recognize individuals approaching the door. This doorbell would wirelessly connect to a deadbolt lock, potentially allowing it to unlock automatically for residents. The project is still in the early stages, with a market release not expected before late 2025.
The doorbell might be compatible with third-party locks that work with Apple’s HomeKit, or Apple could partner with a specific lock manufacturer. While this product would enable Apple to compete with existing smart doorbells like Amazon's Ring, it could also expose the company to risks, particularly if the system were implicated in home security failures.
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🚨 OpenAI’s GPT-5 reportedly falling short of expectations
OpenAI's development of GPT-5 is reportedly behind schedule and not meeting expectations, according to a recent Wall Street Journal report. The model, code-named Orion, has undergone at least two large training runs, but progress has been slower and more costly than anticipated. While GPT-5 shows some improvements over its predecessors, these enhancements do not yet justify the significant operational costs.
To enhance the model, OpenAI is not only using publicly available data but has also hired personnel to generate new data and is utilizing synthetic data from its earlier models. The company has stated it will not release the Orion model this year, reflecting a shift in its approach to developing AI technologies.
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🔹 After causing outrage on the first day of Y Combinator, AI code editor PearAI lands $1M seed
PearAI, an AI code editor startup, faced significant backlash on its first day at Y Combinator after accusations of copying another open-source project. Following this controversy, the founders, Nang Ang and Duke Pan, quickly adapted their concept and secured $1.25 million in seed funding, including $375,000 from Y Combinator.
Initially criticized for poor licensing practices and an aggressive marketing approach, the team responded by switching to a standard open-source license and improving documentation. They are now pivoting from a standalone code editor to developing a framework that integrates various AI coding tools, allowing for a more cohesive user experience. Despite some skepticism, PearAI has received praise for its revised direction.
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🔹 Boon raises $20.5M to build agentic AI tools for fleets
Boon has raised $20.5 million to develop agentic AI tools aimed at improving logistics and fleet management. The startup's platform is designed to integrate data from various applications, enhancing operational efficiency for logistics companies that often use multiple scattered tools. Founder Deepti Yenireddy describes Boon as a supplementary team member that automates critical tasks, allowing human employees to focus on more profitable activities.
The funding includes a $15.5 million Series A round and a $5 million seed investment, led by Marathon and Redpoint Ventures. Boon currently serves about 35,000 drivers and 10,000 vehicles, achieving an annual revenue run rate of $1 million within nine months. Yenireddy, who previously worked at Samsara, aims to simplify logistics operations through a unified platform, addressing the inefficiencies of traditional systems. The startup plans to expand its offerings beyond routing and operations to include optimizing staffing and container loading processes.
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🔻 California can ban new gas cars starting in 2035, EPA says
The Environmental Protection Agency (EPA) has granted California the authority to ban the sale of most new gas and diesel vehicles starting in 2035. This decision allows California to implement its plan, which phases out fossil fuel cars in stages beginning in 2026, requiring 35% of automakers' sales to be zero-emissions vehicles. The targets increase to 68% by 2030 and 100% by 2035, with some allowances for plug-in hybrids.
The move reflects California's longstanding ability to set stricter emissions standards under the Clean Air Act. However, the incoming Trump administration is expected to reverse this decision, as it had previously rescinded California's waiver in 2019. The situation is complicated by the fact that 16 other states and the District of Columbia have adopted similar standards, and any reversal would require significant time and effort. Automakers have expressed mixed responses, with some supporting the regulations while also seeking more time for compliance.
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🔸 India’s MobiKwik surges 82% in market debut
MobiKwik, an Indian digital payments firm, saw its shares surge 82% to ₹507.5 ($6) on its market debut following a $69 million IPO. This increase pushed its market value to $464 million, surpassing its initial target of $250 million, though still below the $924 million valuation from a 2021 fundraising round.
Founded 15 years ago by Upasana Taku and Bipin Singh, MobiKwik has built a popular digital wallet platform but faces intense competition, particularly from the widely adopted UPI payment system. The company claims a user base of 161 million and serves over 4 million merchants. MobiKwik's successful listing highlights the current vibrancy of India's IPO market, with over 20 startups planning to go public next year.
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🫶 Gupshup investor cuts value of its stake again, implying new valuation of $486M
Fidelity has reduced the estimated value of its stake in Gupshup, a business messaging platform, by 7.7% last month, bringing the total decrease to over 65% since its initial investment in mid-2021. The asset management firm now values its holding at $5.62 million, down from $6.09 million the previous month.
Originally, Fidelity invested $16.2 million at a valuation of $1.4 billion. Gupshup's current valuation is now estimated at $486 million. The company, founded in India 17 years ago, raised $340 million in 2021 from various investors, including Tiger Global and Malabar Investments.
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🔻 Bench to be acquired after abruptly shutting down
Bench, a VC-backed accounting startup, abruptly shut down, leaving thousands of customers locked out of their accounts. The company will be acquired by Employer .com, which focuses on HR tech, for an undisclosed amount. Employer .com plans to revive Bench's platform and assist customers in accessing their data. Customers can choose to either port their data or continue their service under the new ownership.
The shutdown caused significant disruption, especially with tax season approaching. Bench had previously claimed over 35,000 clients, but the actual number was around 12,000. Following the acquisition, Employer .com aims to maintain service quality and potentially enhance offerings using its resources. Bench employed over 600 people, some of whom are being called back to ensure a smooth transition.
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🫶 Africa’s newest fintech unicorns are winning by keeping their feet on the ground
Africa's fintech landscape is evolving, with new unicorns like South Africa's TymeBank and Nigeria's Moniepoint recently achieving valuations over $1 billion. These companies have successfully adapted fintech models from mature markets to meet the needs of a largely unbanked population.
Both firms emphasize a hybrid approach, combining digital banking with physical touchpoints to enhance customer engagement. TymeBank offers low-cost banking services through retail partnerships, while Moniepoint uses a network of small business agents to facilitate transactions. This strategy acknowledges the region's reliance on cash and the need for in-person interactions, contrasting with purely digital models seen in developed countries.
As these companies grow, they plan to expand into other markets while continuing to innovate within Africa's informal economy. Their success highlights a broader trend in fintech that could serve as a blueprint for future startups in various industries across the continent.
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🚨 Israeli tech CEO who was severely wounded in Gaza sells startup for about $100 million
Itamar Ben Hemo, a 49-year-old Israeli tech entrepreneur, voluntarily joined the military reserves after the October 7 Hamas attack. During a mission in Gaza, he was shot, suffering severe injuries that required extensive recovery time in the hospital. Despite his challenges, his startup, Rivery, continued to operate, focusing on AI-driven software integration. Recently, Rivery was acquired by Boomi for around $100 million, enhancing Boomi's capabilities in real-time data integration.
Throughout his recovery, Ben Hemo remained actively involved in the company, holding meetings and engaging with investors from his hospital bed. Boomi's CEO, Steve Lucas, praised Ben Hemo’s resilience, emphasizing the importance of quick AI adoption for businesses. The ongoing conflict in Israel has led to significant risks for tech companies, but there are signs of recovery in the industry, with increased startup exits and venture funding.
Tragically, another Rivery employee, Itay Galea, was killed in the conflict, and Ben Hemo ensured his family would benefit from the acquisition. Now fully recovered, Ben Hemo expresses excitement for future opportunities, marking this sale as his second successful exit.
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🔸 Bench shuts down, leaving thousands of businesses without access to accounting and tax docs
Bench, a Canadian accounting startup, has abruptly shut down as of December 27, 2024, leaving over 35,000 businesses without access to their accounting and tax documents. The company's website is offline, except for a notice about the shutdown. Customers are advised to file a six-month IRS extension and can download their data until December 30, with a final deadline to do so by March 2025.
Bench recommends migrating to Kick, a new startup that recently raised $9 million. The sudden closure has shocked customers, many of whom expressed frustration on social media. Former CEO Ian Crosby criticized the board's decision to replace him, suggesting that such changes often lead to failure.
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✅ PharmEasy investor cuts value of its stake drastically, implying new valuation of $456M
PharmEasy is now valued at approximately $456 million, according to a filing by investor Janus Henderson, which significantly marks a 92% decline from its peak valuation of $5.6 billion. This drastic reduction comes despite PharmEasy raising over $200 million earlier this year and preparing for an initial public offering (IPO) in 2025.
The company has faced financial challenges after deferring an $843 million IPO planned for November 2021 and has relied on debt financing, including a problematic $300 million loan from Goldman Sachs. PharmEasy, which operates one of India's largest online pharmacies, has raised more than $1 billion to date but is now valued lower than the $600 million it paid for diagnostic lab chain Thyrocare in 2021.
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🔵 $132K – $149K, here’s what seed-stage founders pay early employees, based on data
This is an examination of the salaries of early employees at seed-stage startups based on data from Kruze Consulting. Founders typically pay themselves modest salaries, with average figures being $132,000 for CEOs, $134,000 for CTOs, $135,000 for COOs, and $149,000 for product leaders. These salaries are relatively low compared to senior engineers, who can earn between $180,000 and $235,000 in the Bay Area.
As startups raise additional funding, founder salaries tend to increase significantly, reaching an average of $183,000 after Series A and $218,000 after Series B. Initial hires can expect varying salaries based on their roles, with mid-level engineers earning between $100,000 and $145,000 and sales personnel earning between $80,000 and $110,000 in the Bay Area.
Equity is also a common compensation component for early employees, with first hires typically receiving between 0.5% and 4% equity. There is a financial landscape for startups as they navigate early-stage hiring and compensation strategies.
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🔔 Shuttered electric air taxi startup Lilium may be saved after all
Lilium, the electric air taxi startup that recently ceased operations and laid off about 1,000 employees, may have a chance for revival. A consortium of investors, Mobile Uplift Corporation, has agreed to acquire Lilium’s operating assets, including its subsidiaries, although the parent company will not receive any funds due to German insolvency law.
The deal is expected to close in January, and Mobile Uplift plans to rehire some laid-off workers. Lilium's CEO expressed optimism about the investment agreement, which aims to restructure the company and allow it to exit insolvency without debt. Despite previously raising over $1 billion and securing orders for electric planes, Lilium struggled financially and filed for insolvency in October after failing to secure emergency funding.
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🚨 Proton’s device aims to help those with kidney disease, and cut heart failure risks
Proton Intelligence, a Canadian startup, has developed a continuous potassium monitoring device aimed at helping individuals with chronic kidney disease and reducing heart failure risks. The company recently secured $6.95 million in seed funding, with clinical trials underway for a product set to launch in 2025.
The device will be implanted just under the skin and connect to a smartphone app, allowing patients to monitor potassium levels and receive alerts if their levels become unsafe. This innovation aims to reduce the need for in-clinic potassium testing and improve patient management, addressing the significant health risks associated with potassium imbalances.
Co-founders Sahan Ranamukhaarachchi and Victor Cadarso based their startup on extensive research highlighting the dangers of inadequate potassium monitoring. Proton competes with other companies in the sector, claiming their solution offers greater usability and clinical impact. The startup plans to enhance patient care by leveraging data to refine therapies and is supported by various investors, including SOSV and We Venture Capital.
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🚨 Palantir and Anduril reportedly building a tech consortium to bid on defense contracts
Palantir and Anduril are reportedly in discussions to form a tech consortium aimed at bidding on Pentagon defense contracts. They are engaging with other tech firms, including SpaceX, OpenAI, Saronic, and Scale AI, to create a competitive alternative to established defense contractors like Lockheed Martin, Raytheon, and Boeing.
The consortium aims to introduce a new generation of defense contractors and enhance the efficiency of providing cutting-edge technology and weapons to the U.S. government. Initial partnerships could be announced as soon as January. This development follows a recent integration announcement between Palantir’s AI Platform and Anduril’s Lattice software, suggesting a strategic collaboration to ensure U.S. leadership in artificial intelligence.
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⚡️ Meet Skyseed, a VC fund and incubator backing the Bluesky and AT Protocol ecosystem
Skyseed is a new venture capital fund and incubator focused on supporting projects within the Bluesky and AT Protocol ecosystem. Launched by Peter Wang, the initiative began with a $1 million commitment and aims to foster experimental projects that leverage decentralized social networking.
Wang, co-founder of Anaconda, has a background in supporting decentralized web initiatives. He sees Bluesky as a potential alternative for users migrating from X (formerly Twitter), emphasizing the importance of open protocols that enable user data ownership and diverse app experiences.
Skyseed will provide both equity investments and developer grants to promising projects, with initial funding checks around $100,000. The fund's growth potential could reach up to $10 million as interest increases. Wang envisions Skyseed as a collaborative space for innovators, highlighting the emergence of a vibrant ecosystem similar to the early internet. Despite challenges, such as moderation issues, Wang remains optimistic about the opportunities within the AT Protocol framework.
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🔵 EV startup Canoo places remaining employees on a ‘mandatory unpaid break’
Canoo, the struggling electric vehicle startup, has placed its remaining employees on a "mandatory unpaid break" through at least the end of the year. This decision follows recent layoffs, including nearly 100 employees, and the idling of its Oklahoma assembly facility due to funding issues. Employees will be locked out of company systems, although benefits will continue through December.
Canoo has faced significant challenges this year, including the closure of its Los Angeles headquarters and a loss of key executives. The company reported having only $700,000 in the bank as of mid-November, highlighting its precarious financial situation.
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🚨 Ex-Twitch CEO Emmett Shear is founding an AI startup backed by a16z
Emmett Shear, the former CEO of Twitch, is launching a new AI startup called Stem AI, which is currently in stealth mode. The startup, incorporated in June 2023, focuses on developing AI that aligns with human behavior, preferences, and ethics. It has secured funding from Andreessen Horowitz (a16z).
One of Stem AI's co-founders is Adam Goldstein, known for founding travel site Hipmunk. Shear has expressed strong views on AI regulation and design, criticizing current AI chatbots for being manipulative and lacking stable identities. He has previously voiced concerns about the potential dangers of advanced AI, advocating for measures to ensure safety and control.
Shear briefly served as interim CEO of OpenAI before Sam Altman's reinstatement. He earned approximately $3,720 during that period. The startup's aims may address challenges in AI alignment and safety as it develops.
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🚨 ‘We want to pay it forward’: Funding Societies raises $25M to boost capital for SMEs in Southeast Asia
Funding Societies, a Singapore-based SME lending platform, has raised $25 million in equity funding from the Cool Japan Fund, marking its first investment in Southeast Asia's fintech sector. The company aims to enhance capital access for small and medium-sized enterprises (SMEs), which contribute nearly 50% of Southeast Asia’s GDP but often struggle to secure traditional bank loans.
Founded in 2015 by Kelvin Teo and Reynold Wijaya, Funding Societies has loaned over $4 billion to more than 100,000 businesses across the region. The new funding will be used to expedite financing services and invest in AI to streamline the lending process. The startup has also expanded into payments and plans to support Japanese companies operating in Southeast Asia. Overall, it aims to address the significant financing challenges faced by SMEs in the region.
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🚨 The DOJ wants a Perplexity executive to testify in its Google antitrust case
The U.S. Department of Justice (DOJ) is seeking to call Dmitry Shevelenko, the chief business officer of Perplexity, to testify in its antitrust case against Google, which has already been determined to hold a search monopoly. The DOJ aims to explore the relationship between generative AI technologies, like Perplexity, and search access points, such as Google Chrome.
Perplexity, recently valued at $9 billion, finds itself in the middle of this legal dispute, with both the DOJ and Google requesting information from the company. Google has subpoenaed Perplexity for documents to support its claim of viable competition in the search market, but Perplexity has yet to fully comply. The outcome of these proceedings could significantly impact allegations against Google regarding its monopolistic practices.
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