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Meta has acquired Play AI, a startup specializing in AI-generated human-sounding voices. The entire Play AI team will join Meta, aligning with Meta's focus on AI Characters, Meta AI, Wearables, and audio content creation. This acquisition follows Meta's significant investments in AI, including recruiting from OpenAI and a deal with Scale AI.
According to a Wall Street Journal report, SpaceX is considering a significant investment of $2 billion in Elon Musk's AI startup, xAI. This investment would be part of a larger $5 billion equity raise announced by Morgan Stanley in late June.
This would mark SpaceX's first major investment in xAI. The two companies already have existing collaborations, as xAI's Grok chatbot is used to power customer service for SpaceX's Starlink internet service. There are plans for further partnerships between the companies.
Musk has a history of integrating his various companies, such as merging xAI with X (formerly Twitter) earlier this year. Despite some controversies surrounding Grok, Tesla is also planning to bring the chatbot to its vehicles.
This week's tech news includes leadership changes at X, where Linda Yaccarino stepped down after two years. Apple is refining its Liquid Glass design in iOS 26 beta 3 based on user feedback. Hugging Face introduced Reachy Mini, an open-source desktop robot for AI developers, starting at $299.
Nothing launched its Phone (3) with a second screen and AI features, while Samsung released the Z Fold7 and Z Flip7, including a cheaper Z Flip7 FE. Rivian unveiled quad-motor R1T and R1S EVs with high performance and new software. Elon Musk's xAI introduced Grok 4, an AI chatbot that sometimes consults Musk's X posts.
Apple's head of AI models, Ruoming Pang, moved to Meta. Jack Dorsey is working on Bitchat, a Bluetooth-based messaging app, which is undergoing security scrutiny. RealSense is spinning out of Intel with $50 million in funding to scale its 3D imaging tech. Slate Auto, backed by Jeff Bezos, revealed plans for an affordable electric pickup truck.
Sequoia Capital is facing a crisis due to partner Shaun Maguire's inflammatory social media posts. Maguire's comments about a New York City mayoral candidate have sparked outrage and a petition demanding Sequoia condemn the remarks.
Sequoia's strategy of silence is being tested, as the firm's response (or lack thereof) has drawn criticism. Maguire's controversial stance may be strengthening his position. Sequoia's calculated gamble carries risk, including the possibility of further backlash or alienation of potential business partners.
Sequoia's historical approach has been to give partners space to express themselves publicly, but there's a distinction between political diversity and incendiary rhetoric. The firm has precedent for taking action when a partner's behavior crosses a line, as seen with Michael Goguen.
Sequoia's silence carries risks, including alienating diverse talent and being seen as tacitly endorsing Maguire's views. The firm's reputation is at stake in an increasingly connected global market.
Ultimately, whether Sequoia's bet pays off will depend on how long the controversy lingers, how much business it costs Sequoia, and whether Maguire can resist the urge to push things past Sequoia's own tolerance threshold.
OpenAI's $3 billion deal to acquire Windsurf fell apart, leading Google DeepMind to hire Windsurf's CEO Varun Mohan, co-founder Douglas Chen, and top researchers. Google confirmed the hiring, aiming to advance their work in agentic coding. This deal is a reverse-acquihire, where Google licenses Windsurf's technology without acquiring the company, similar to past deals with Character.AI and Microsoft.
Windsurf's head of business, Jeff Wang, will become interim CEO. Most of Windsurf's 250-person team will continue offering AI coding tools for enterprise customers. OpenAI's failed acquisition caused tension with Microsoft. Windsurf's ARR reached $100 million in April, attracting interest from OpenAI and Google.
The addition of Windsurf's leaders could boost Google's AI coding tools, aligning with the industry trend of offering AI coding applications. Windsurf's future is uncertain, as other AI startups have struggled after similar deals.
Paragon, an Israeli spyware company claiming ethical practices, faces scrutiny over a $2 million contract with U.S. Immigration and Customs Enforcement (ICE). The contract, signed in September 2024, is under review due to concerns about compliance with a Biden-era executive order restricting the use of spyware that could be used to violate human rights.
The contract remains on pause, with Homeland Security reviewing its compliance with the executive order. The Trump administration's position on the order remains unclear. Paragon previously cut ties with Italy after its spyware was misused, but now faces the ethical question of supplying its tools to ICE.
Critics, like Access Now, urge Paragon to reconsider the agreement given ICE's record on human rights. The decision could test Paragon's claim of being an 'ethical' spyware vendor, as it navigates the ethical implications of its government contracts.