Welcome back to the week in review. This week, we reveal the newest layoffs at Mozilla, Perplexity offers to cross the picket line, and Apple warns investors it might never outperform the iPhone. Let’s get on with it.

Mozilla Foundation laid off 30% its employees in the course of the second round of layoffs this 12 months on the maker of the Firefox browser. Executive director Nabiha Syed confirmed that two of the inspiration’s core divisions – advocacy and global programs – “are no longer part of our structure.” Mozilla’s chief communications officer, Brandon Borrman, told TechCrunch that advocacy “continues to be a core tenet” of the corporate’s work, but he didn’t provide details.

Anduril is considering constructing the primary major manufacturing facility, a 5 million-square-foot facility often called “Arsenal-1,” was in-built Arizona, Ohio or Texas after a $1.5 billion round, in line with someone aware of the matter. When TechCrunch asked an Anduril spokesperson whether the defense technology company was currently choosing one of three locations for its factory, she replied, “That’s incorrect,” but didn’t specify which exact part was incorrect.

Video game giant Activision is fixed a bug in its anti-cheat system that it said affected “a small number of legitimate player accounts” that were blocked because of it. However, in line with the hacker who found the bug and exploited it, he managed to dam “thousands” of Call of Duty players who were framed as cheaters. The hacker spoke to TechCrunch in regards to the exploit and told his side of the story.

News

Embarrassment crosses the picket line: Perplexity CEO Aravind Srinivas offered to supply the unreal intelligence company with services to alleviate the impact of the New York Times tech employees’ strike, which resulted in lots of X users chastising Srinivas for acting like a scab. Read more

Nvidia becomes no 1: Nvidia has surpassed Apple’s market capitalization to change into the most important company on the planet. At the market close earlier this week, Nvidia’s valuation was $3.43 trillion, which was greater than Apple’s $3.38 trillion. Read more

Will Apple Ever Beat the iPhone? Apple is warning investors that its latest and future products may never be as profitable because the iPhone. The disclosure comes as the corporate rolls out artificial intelligence technology and mixed reality headsets comparable to the Apple Vision Pro. Read more

Bowery Farming is closing: The agtech unicorn known for constructing vertical farms that would produce crops is shutting down. The company has seen multiple rounds of layoffs in 2023, most recently valuing it at $2 billion in 2021. Read more

Our ChatGPT search engine review: Last week, OpenAI released its long-awaited search product, ChatGPT Search. But is it really the “Google killer” that’s being talked about? TechCrunch’s Maxwell Zeff thinks that is not there yet. Read more

Investing in ‘AI-powered parenting’: Can artificial intelligence enable you to change into a greater parent? Andreessen Horowitz partner Justine Moore presented a brand new investment thesis for the firm at X, endorsing “a new wave of ‘parent associates’ built from LLMs and agents.” Read more

BP is implementing 18 hydrogen projects: Buried in a 32-page earnings report, oil and gas giant BP revealed it was scrapping 18 early-stage hydrogen projects, a move that would have a chilling effect on the nascent hydrogen industry. Read more

Infinite Minecraft: Artificial intelligence company Decart has released what it claims is the primary playable “open world” artificial intelligence model. The model, called Oasis, powers a Minecraft-like game that generates frames in real time, simulating physics, rules and graphics on the fly. Read more

Canada focuses on TikTok: Canada has ordered the closure of ByteDance’s operations in Canada – specifically the offices of TikTok Technology Canada, Inc. – citing a risk to national security. However, Canadians can still download and use TikTok. Read more

No Instagram under 16: Australian Prime Minister Anthony Albanese has announced plans to ban social media use for kids under 16, with no exceptions for parental consent. If passed, it could be the strictest social media ban for teenagers anywhere on the planet. Read more

Remove GPT, it’s cleaner: OpenAI bought Chat.com, which now redirects to ChatGPT. Last 12 months, HubSpot co-founder and CTO Dharmesh Shah was reported to have acquired the domain for $15.5 million, making it one of the 2 largest domain sales ever publicly reported. Read more

Analysis

What Trump’s victory means for Elon Musk: In this election, the billionaire CEO veered sharply to the proper to support President-elect Donald Trump, using his vast wealth, influence, and megaphone at X to influence the consequence of the election. Many predicted that there can be conflict between the 2 giants before the tip of Trump’s term, but as Rebecca Bellan and Aria Alamalhodaei write, Musk’s role as president could mark one of essentially the most significant examples of a businessman helping to shape the longer term of the policies and regulations governing his own business. . Read more

Founders hope their startups will continually raise larger rounds of funding at rising valuations. However, unexpected challenges, comparable to a global health crisis or a sudden increase in rates of interest, could have a significant impact on a company’s ability to maintain its valuations.

Some of these startups could have to resort to seed rounds, which is recent financing at a lower valuation than the corporate’s previous price. While founders and investors generally try to avoid inheritances, contrary to popular belief, these deals don’t necessarily have a devastating impact on a startup’s future.

“Our first investment when we founded the company in 2021 was to take stock of the company, which had to make a complete change during the pandemic,” said Nikhil Basu Trivedi, co-founder of Footwork, on the TechCrunch Disrupt 2024 stage. “Their initial business was in the university housing market, which was decimated when the pandemic hit.”

Footwork reset the corporate’s cap table and created a recent pool of stock options for the whole team, Basu Trivedi said, adding that the corporate’s recent business, a restaurant subscription platform called Table22, “managed to survive and thrive because of this experience.” Last week, Table22 announced Series A for $11 million led by Lightspeed Venture Partners.

Although definitely not all corporations which have to undergo a round of declines make a full recovery. Elliott Robinson, a partner at Bessemer Venture Partners, said on stage that if a company is struggling, “there’s a pretty good chance that someone else in your space or a competitor is struggling with a lot of the same challenges.”

Robinson encouraged startups in these positions to stay the course. “If you lose a defensive round, there’s nothing wrong with that,” he said. “In a difficult market environment, this might actually be a victory. You may not see or feel it until the fourth quarter or six, but most of the time the market can open up to you if you happen to’re willing to hang in there.

Notable corporations which have seen valuation hits include Ramp, which was valued at $5.8 billion last yr, a 28% reduction from its previous price of $8.1 billion. The fintech gained some of its value in April this yr when Khosla Ventures valued it at $7.65 billion.

Down rounds weren’t quite common throughout the pandemic boom, but their incidence as a percentage of total deals has greater than doubled from 7.6% in 2021 to 15.7% according to PitchBook data in the primary half of 2024.

Startup prices dropped significantly after the US Fed raised rates of interest, and many corporations’ valuations remain inflated relative to their performance, said Dayna Grayson, co-founder of Construct Capital. Some of these corporations are likely considering probate rounds, but many founders find such deals very stressful.

In the probate round, employees and founders receive a smaller percentage of ownership of the corporate.

“I think the scariest thing for a lot of founders is managing morale,” Grayson said. “But you can absolutely motivate people through down rounds.”

Robinson, who has guided three portfolio corporations through periods of decline and decline over the past yr and a half, explained how investors motivated employees and executives at one of those corporations to stay engaged after a round of declines. He explained that while everyone at the corporate experienced a valuation loss, investors created a bonus pool to reward the whole team with money bonuses in the event that they managed to achieve a 60% revenue increase inside a certain time-frame. Robinson said founders and top executives can even receive additional capital in the shape of stock options in the event that they meet certain revenue goals.

“This allowed us to make the company-wide goals and management goals very clear,” he said, adding that it “reminded people that the core business is still solid.”

Many enterprise capitalists are currently wondering what is going to occur when multiple AI corporations raise capital at high valuations.

“I think it would be hard to argue that there aren’t overly inflated valuations in the market right now,” Grayson said.

Basu Trivedi, who has invested in several AI startups including AI detector GPTZero, said many AI corporations “have the fundamentals to justify the hype and valuations,” but later added that it’s still hard to say. which artificial intelligence corporations will succeed. “Some of these categories are very competitive,” he said. “There are about 20 companies that do something really similar.”

Roughly 19 months after the fatal stabbing of technology executive Bob Lee in San Francisco captured national attention, the trial of the person accused of killing him, tech entrepreneur and consultant Nima Momeni, will soon begin.

This needs to be fascinating, if the prosecutor’s newly concluded case against Momeni is any indication. According to the San Francisco Standard, here’s the deal chief police investigator took jurors through the myriad twists and turns of a two-day drug bust involving Lee with Khazar Momeni, the defendant’s sister, including the alleged sexual assault of Khazar Momeni by Lee’s friend, a drug dealer, and Nima Momeni’s attack on Lee, which was stabbed 3 times with a kitchen knife.

Certainly, the main points show that Lee’s death had nothing to do with homelessness in San Francisco because it did initially assumed. On the contrary, the case to this point has included many details that would have been seen on an episode of “Law & Order,” from cell phones to the resale of a BMW to a dealership to video evidence from The Battery, a preferred private social media site. club in the town.