Thursday, October 17, 2024

Meta lays off staff across multiple teams

Thursday, October 17, 2024

Welcome to TechCrunch AM! This morning, we've got details of yet more layoffs at Meta, why a YC-backed fintech is shutting down, the latest merger in cybersecurity, and a scoop on Indian startup Zepto's third round in 6 months. We've also got notes from Meta's chief AI scientist; how diamonds can help clear nuclear waste; an effort to keep AI competitive; Instagram's new safeguards for kids, and more. Let's go! — Rebecca

TechCrunch Top 3

Image Credits: ANDREW CABALLERO-REYNOLDS / AFP / Getty Images

1. Did you think the tech layoffs were over? Not even close. Teams at Reality Labs, Instagram and WhatsApp were hit by Meta's latest round of layoffs as the company ensures "resources are aligned with their long-term strategic goals and location strategy." FT reports that two dozen staffers were fired for using their $25 meal credits to buy household items. Read More

2. Cybersecurity consolidation continues: Cybersecurity unicorn Cyera has been gaining ground over the last few years as major breaches have hit governments and businesses. Now, Cyera's acquired Trail Security for $162 million. And it's raising capital at a $3 billion valuation. Read More

3. Quick commerce is on fire: India's Zepto is in advanced talks to raise $100 million in a new round that would be its third fundraise in six months. Clearly quick-commerce is doing way better in India than it ever did in the U.S or elsewhere. Read More

Morning Must-Reads

Image Credits: Paras Griffin/Getty Images for Operation Hope

🔻 Fintech is not easy: CapWay, a YC-backed fintech that wanted to bring financial services to "banking deserts," has shut down. In the aftermath of Evolve Bank's hacking and Synapse's collapse, banks became wary of partnering with upcoming fintechs without large bank accounts, CapWay's founder said. Read More

💰 The makings of a serial entrepreneur: Former HubSpot engineer Elias Torres sold his company Drift for $1.2 billion in 2021. But, as he told TC, he's "not done." Today, he launched Agency, which wants to use AI to automate tasks for customer success managers. Read More

🗺️ True AI remains a dream: Yann LeCun, Meta's chief AI scientist (and my favorite voice on X/Twitter), doesn't think today's AI models are really reasoning like a human would. He says if we want to get there (in a decade or so), we need to focus on building "world models." Read More

💻 Private equity in action: Squarespace is no longer a publicly traded company after private equity firm Permira bought out all of its remaining stock at a valuation of around $7.2 billion. Anthony Casalena will continue as CEO and chairman, and his stake in the company remains intact. Read More

☢️ Fixing the radioactive debris problem: Japanese startup Ookuma Diamond Device has stepped up to help remove radioactive debris in and around the Fukushima Daiichi nuclear plant. As its name suggests, it uses diamond chip-powered amplifiers to do it. Read More

Around the Web

🌍 Will AI help Africa? A Financial Times article explores whether machine learning could have a transformative effect on Africa by putting revolutionary tools into the hands of individuals. Or will thrusting a foreign-born technology onto the continent deepen the development gap? Read More

🤑 A slice of that AI data center cash: Institutional investors have been pouring money into AI data centers, and that cash is now trickling down to startups, per Crunchbase News. To date, $1.3 billion has been invested in startups that make tools and solutions for data centers. Read More

🥊 Keeping AI competitive: The Open Markets Institute and Mozilla have published a new report titled "Stopping Big Tech from Becoming Big AI," urging policymakers to ensure that AI remains a competitive and innovative field, rather than being dominated by a few tech giants. Feels like that ship has sailed, but I still have hope. Read More

Before You Go

Image Credits: picture alliance / Contributor / Getty Images

📸 Instagram has introduced new safety features to protect kids from sextortion scammers. For example, people can no longer screenshot or screen-record ephemeral images or videos in private messages. It's a step in the right direction, but why do I feel like it's a small effort aimed at avoiding regulation? Read More