Tuesday, May 20, 2025

Welcome to TechCrunch AM! We've got a coming-of-age startup story, how AI saved Klarna money, and a VC fund for creators. We've also got Google's solar moves, fresh capital for APAC, the fallout of Apple's court ruling, Waymo's growth, fintech 3.0, Intel's breakup, Builder's insolvency, and why Austin still isn't the new Silicon Valley. Let's go!

TechCrunch Top 3

Image Credits: Lydia Tsenta, Ludens Creative Agency

1. Putting on a tie: Monzo is Britain's biggest digital bank, known for its neon debit cards, penchant for emojis, and free spending abroad. Now, it's evolving from a cool startup to a mature, sustainable financial institution. TC EIC Connie Loizos sat down with Monzo CEO TS Anil to learn about how he's putting foundations in place to make this change happen. Read More

2. Do more with AI: Klarna's move to ditch its pricey Salesforce CRM and focus on its in-house, OpenAI-powered AI systems is paying off. Today, the company's revenue per employee has soared to nearly $1 million, up nearly 2x from the year prior. Read More

3. Creators FTW: Creator Ventures, a seed stage VC fund focused on consumer internet companies, is launching its second fund with $45 million. This comes off the back of success with Creator Ventures's first fund, which made bets into startups like Eleven Labs, Wild, and Runna. Read More

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Morning must-reads

Image Credits: Headline VC / Headline Asia

💴 APAC-attack: Despite economic uncertainties, VC firm Headline Asia closed one of its largest funds to date at $145 million. The fund is dedicated to investing in tech startups across the Asia-Pacific region. Read More

📚 The court ruling that keeps on giving: Now that Apple can't charge fees on purchases made outside the App Store, Spotify will once again sell audiobooks directly on the iOS app. Spotify users can also buy top ups within the app. Read More

🎮 And anotha' one: A federal judge wants Apple to approve Fortnite's submission on the U.S. App Store or head to court once again to explain why it has not yet done so. And the judge might be willing to hold Apple in contempt if it doesn't fall in line. Read More

🤑 Fintech 3.0: TC got the scoop that the young founders of expense management software startup Affiniti have raised a $17 million Series A led by SignalFire, just six months after capturing an $11 million seed round. How? By bringing something fresh to small business credit card options. Read More

🚕 Way mo' Waymos: Waymo and Uber are starting to offer robotaxi rides in Atlanta to select customers who signed onto the waitlist earlier this year. It's a step towards launching a public robotaxi service there this summer. At the same time, Waymo got the OK from California regulators to expand its commercial robotaxi service area in Silicon Valley. Read More and More

☀️ Power up: Google is doubling down on its data centers with another purchase of 600 megawatts of solar power – a step in the right direction as Google works towards its goal of being carbon neutral by 2030. Read More

A Message from HSBC Innovation Banking

HSBC Helps Evolectric Transition Vehicles to 100% Electric

Evolectric makes it easy for owners to give their fleets a new lease on life. Discover how HSBC helps connect them to the right investors, resulting in an extended runway and growth plans for both domestic and international markets.

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Around the web

🪓 The partition of Intel: Reuters reports that Intel has considered breaking up its network and edge businesses as its new CEO Lip-Bu Tan looks to shave off parts of the company he doesn't see as crucial and refocuses employees on core areas like PC and data center chips. Read More

🤠 Silicon Valley is the new Silicon Valley: Five years after Austin, Texas became a darling of the tech industry that lured companies out of California, promising lower taxes and cheaper rent, the city is now bleeding tech talent back to the Valley, per The Wall Street Journal. Read More

Before you go

Curiouser and curiouser: Last week we reported that Austin Russell resigned per a press released issued by its board. Now, it seems one of those board members has also resigned. Read More