Welcome again to Week in Overview! Elon Musk says that xAI purchased X in an all-stock deal; a16z-backed 11x faked some clients; the Lumon Terminal Professional pops up on Apple’s web site; and far more. Let’s dig in!
xAI buys X: X proprietor Elon Musk introduced on X on Friday that xAI acquired X in an all-stock transaction. This mix values xAI at $80 billion and X at $33 billion. “At present, we formally take the step to mix the information, fashions, compute, distribution and expertise,” Musk mentioned.
Fudging the numbers: Greater than 20 sources — together with traders and present and former workers — instructed TechCrunch that a16z- and Benchmark-backed 11x has experienced financial struggles, largely of its personal making. “They completely massaged the numbers internally when it got here to progress and churn,” a former worker mentioned.
Block layoffs: A leaked message by Block CEO Jack Dorsey reviewed by TechCrunch revealed that the corporate — which owns Money App and Sq. — was laying off 931 people, or 8% of the company, as part of an “org restructuring.” Dorsey’s electronic mail denies that the layoffs are for monetary causes or to interchange employees with AI.
That is TechCrunch’s Week in Overview, the place we recap the week’s largest information. Need this delivered as a e-newsletter to your inbox each Saturday? Sign up here.
Information
“What, me do fraud?” The White Home confirmed to TechCrunch on Friday that President Trump pardoned Trevor Milton, the founding father of bankrupt hydrogen trucking startup Nikola who was convicted of fraud. The pardon comes only a few weeks after Nikola filed for Chapter 11 chapter.
Talking of leaks: A leaked database seen by TechCrunch reveals that China has developed an AI system that supercharges its already formidable censorship machine, extending far past conventional taboos just like the Tiananmen Sq. bloodbath.
Skunkworks spins out: Rivian’s skunkworks challenge was spun out of the company with a brand new identify and $105 million in funding from Eclipse Ventures. The startup, referred to as Additionally, will exist as a stand-alone firm from Rivian.
Get your computer systems prepared: Apple introduced that Worldwide Developers Conference 2025 will begin June 9. Reviews have indicated that Apple has ready dramatic software program overhauls for the iPhone, iPad, and Mac. We additionally count on iOS 19, which, in line with Bloomberg, will probably be “the most important revamp since iOS 7.”
DNA debacle: DNA testing firm 23andMe filed for bankruptcy this week. The corporate’s co-founder and CEO, Anne Wojcicki, individually mentioned she is leaving to change into an unbiased bidder for the corporate. Your data might not be safe, so here are some ways to delete it.
An act of Congress: Kat Abughazaleh, the 26-year-old who was among the many folks laid off from Media Issues after Elon Musk sued the corporate, announced this week that she’s running for Congress. “I’m making an attempt to be actually clear about the right way to run for workplace, as a result of I really feel prefer it’s sort of this black gap that appears much more tough than it ought to be,” she instructed TechCrunch.
A slice of “Severance”: I haven’t watched any seasons of “Severance,” and primarily based on seemingly everybody on the planet, I’m completely lacking out. My colleague Sarah is amongst these folks, and she or he noticed a Lumon Terminal Pro (the machine they use in the show) on Apple’s website.
Backdoor to China: SpaceX, a protection contractor for the Pentagon, reportedly allowed Chinese investors to buy shares, so long as the funds are routed via the Cayman Islands or different offshore hubs.
The Change 2 is coming! And at Nintendo Direct, the corporate introduced that it’s engaged on Virtual Game Cards that allow players to take their downloaded games with them to make use of on different units.
Evaluation
ChatGPT’s new picture generator launched this week, and with it got here a flood of pictures primarily based on artwork by Studio Ghibli being posted on-line. Whereas the controversy over whether or not that is horrifying (Studio Ghibli co-founder Hayao Miyazaki as soon as mentioned that “AI is an insult to life itself”) or cool, it does spotlight one factor: Copyrights are still a concern in terms of AI-generated something. Though copying the artwork fashion isn’t essentially illegal, OpenAI coaching its fashions on Studio Ghibli’s artwork operates in a authorized “grey space.”
“I feel this raises the identical query that we’ve been asking ourselves for a pair years now,” Evan Brown, an mental property lawyer, instructed TechCrunch. “What are the copyright infringement implications of going out, crawling the net, and copying into these databases?”