I swapped out my space heater and ceiling fan for a single Dyson device.

I swapped out my space heater and ceiling fan for a single Dyson device.

The Dyson Hot+Cool HF1 is an elegant 2-in-1 smart device that offers warmth during winter and cooling in summer. Crafted for all-season comfort, the $499 unit merges quiet functioning and smart controls with Dyson’s unique bladeless design.

I usually rely on a ceiling fan for summer and a space heater during winter. After three months of usage, the HF1 was revolutionary for me, not solely due to replacing two devices. It was the HF1’s intelligent features that made this product especially useful. Dyson provided the HF1 unit, which I will return to the manufacturer.

While you can manage the HF1 via the onboard controls or the supplied remote, you can equally operate it from your smartphone using the MyDyson app. I found it particularly helpful to turn the HF1 on or off through my phone — even when I wasn’t present in the room — as well as set timers, modify the oscillation, and arrange schedules for it to turn on automatically whenever needed.

The HF1 is silent enough for bedrooms and home offices. In Sleep mode, it functions at only 26 decibels and dims its display by itself. As a light sleeper who requires complete quiet at night, I was able to alter the fan noise with ease.

The HF1 incorporates an adjustable tilt that allows you to direct airflow precisely where it is required. For broader coverage, it can be set to oscillate at 15, 40, or 70 degrees.

Image Credits:Dyson

The HF1’s smart thermostat consistently observes the room and automatically modifies its heating output to achieve and sustain your selected temperature. One notable point: The HF1’s cooling mode functions essentially as a high-powered fan, not an air conditioner, so it circulates air instead of lowering the room temperature.

One of the aspects I love about the HF1 is its bladeless design, which allows for effortless cleaning. A simple wipe with a cloth suffices to eliminate dust, and unlike traditional fans and heaters, there are no grilles or blades to clean. 

The bladeless construction also renders it a safer option for households with pets and children, as there are no exposed blades that curious hands or paws can get caught in. However, the metal casing around the front of the HF1 can become slightly warm to the touch during heating operation.

An additional pleasant safety feature is that the fan automatically powers off if it tips over. 

Regarding dimensions, the HF1 is compact and weighs just under six pounds while standing 23 inches tall. Its slim profile makes it convenient to move from one room to another without occupying excessive space or appearing out of place.

Though the HF1 carries a premium price, it represents a valuable investment if you desire a single device for all-year application. Its mix of heating, cooling, smart functionalities, quiet operation, and straightforward maintenance makes it a convincing alternative to a conventional space heater or fan.

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How Apple’s significant lawsuit might impact OpenAI’s IPO strategies

How Apple’s significant lawsuit might impact OpenAI’s IPO strategies

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Last Friday, Apple initiated a trade secrets lawsuit against OpenAI, and it’s taking this matter seriously. The lawsuit points to a continuous pattern of misconduct reaching up to OpenAI’s chief hardware officer and asserts that over 400 former Apple employees are now part of the company. OpenAI has thus far offered a cautious response, and the timing is particularly challenging with reports suggesting the company is considering an IPO as soon as later this year.

In this episode of TechCrunch’s Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane explore the implications of the lawsuit for OpenAI’s hardware goals and IPO schedule, along with a broader topic that’s been prevalent in the news this week: how much should people really trust AI firms with their data?

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FBI apprehends individual accused of employing Steam games to deplete victims’ crypto wallets

FBI apprehends individual accused of employing Steam games to deplete victims’ crypto wallets

Prosecutors in the U.S. have charged a man from Florida for uploading counterfeit video games with embedded malware onto Steam, the widely used PC gaming platform. According to a criminal complaint, once users downloaded and installed these games, the malware was intended to compromise their computers, harvest passwords and sensitive information, and siphon off cryptocurrency from their wallets.

The FBI apprehended Zyaire Wilkins, a 21-year-old student from Florida, on Tuesday. The following day, prosecutors accused him along with several unidentified co-conspirators of engaging in hacking activities. For the last two years, Wilkins and his colleagues allegedly released multiple malware-infected video games on Steam, such as BlockBlasters, Dashverse, Lampy, Lunara, and PirateFi. According to the FBI, around 8,000 victims were compromised using the malware, which resulted in hacking about 80 cryptocurrency wallets and stealing over $220,000 in crypto.

Authorities reported that Wilkins and his associates promoted their malicious video games through Discord, LinkedIn, and Telegram.  

Wilkins’ attorney did not reply to a request for comment. 

In March, the FBI disclosed it was probing a hacker suspected of utilizing video games with embedded malware published on Steam for the purpose of hacking victims. The bureau urged individuals who had downloaded the harmful games mentioned in this week’s complaint to come forward and provide information to assist the investigation. 

Over the past year, Valve, the creator of Steam, has removed numerous video games after they were discovered to harbored malware, including PirateFi. All these games were crafted to appear legitimate, allowing players to install and play them, despite containing malware. 

Following the FBI’s identification of another individual implicated in the crimes, the complaint notes that federal agents conducted an interview. This unnamed individual stated they collaborated with others to generate funds for launching and promoting the malicious games in exchange for a share of the stolen cryptocurrency. A specific crypto account tied to the operation was identified by the FBI, which traced cryptocurrency transactions from that account used to purchase various gift cards, including ones for Uber Eats. After obtaining a subpoena from Uber, federal agents found that these gift cards were associated with an account used for deliveries to Wilkins, known online as Sibel.eth, according to the complaint. 

Subsequently, the feds obtained a search warrant for Wilkins’ home, where they confiscated his MacBook, cell phones, additional devices, and digital wallets. As stated in the complaint, he declined to speak or respond to any inquiries.

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Parents desire more secure phones for their children. These companies are responding to the demand.

Parents desire more secure phones for their children. These companies are responding to the demand.

With parents increasingly worried about the hazards of unrestricted smartphone availability for children, more and more companies are creating devices tailored specifically for young users. 

Modern phones designed for kids usually come with touchscreens, cameras, and communication features akin to standard smartphones. Nevertheless, the software on these devices is significantly altered to eliminate or limit access to web browsers, social media, app stores, and other potential distractions.

Typically, parents can oversee these devices using a companion app, granting them the ability to approve contacts, track locations, impose screen time limits, choose accessible apps, and in some cases, receive notifications concerning cyberbullying, adult content, or online predators.

In addition to these customized devices, several companies provide a more simplified approach, crafting gadgets that emphasize solely on phone calls and texting.

Specialized home phones for children are also available, like Tin Can and the newly introduced Pinwheel Home.

Below is an overview of the key players making waves in the kid-phone industry.

The Bark Phone

Image Credits:Bark

The Bark Phone stands out as one of the most well-known smartphones created specifically for children. 

Utilizing Samsung Galaxy hardware and powered by Bark’s tracking software, it restricts calling and texting to approved contacts only. Bark consistently monitors texts, emails, images, and supported applications for indications of cyberbullying, grooming, suicidal thoughts, sexual material, and other potential issues, subsequently notifying parents. 

A prominent feature is that parents can progressively enable web browsing, apps, and additional functionalities as their child grows. The device also incorporates GPS tracking and management of screen time.

The standard model is currently priced at $240, and a necessary wireless plan starts at $29/month. Higher-tier plans feature internet access and unlimited texting.

Gabb

Image Credits:Gabb

Gabb is a recognized brand within the kid-friendly phone sector. In contrast to Bark, Gabb places less emphasis on content monitoring and more on altogether removing online dangers.

Gabb phones exclude social media, a web browser, or an app store. Instead, children can make calls, send texts, and access a carefully selected assortment of preinstalled apps such as a camera, calendar, and calculator. The company also promotes its “worry-free” music streaming service featuring millions of songs. 

Furthermore, parents can monitor locations and adjust various device settings, while optional offerings like “Gabb Guard” provide filters for spam calls and unsolicited texts.

Current pricing for the phones begins at approximately $159.99, with cellular service starting around $24.99 monthly.

Pinwheel

Image Credits:Pinwheel

With Pinwheel, parents can approve each app, control contacts, schedule screen time, establish custom routines, and keep an eye on location history. 

A notable feature is the capability to design various “modes” throughout the day. For instance, restricting the device to calling and navigation during academic hours before unlocking more features afterward.

Pinwheel phones start around $119, with the Caregiver Portal subscription commencing at $14.99 monthly without cellular service. (Cellular service may be purchased separately through participating providers.)

Recently, the company introduced two landline phone models priced at $68 and $79, in addition to a smartwatch available for $160.

Teracube Thrive

Image Credits:Teracube

Introduced in 2022, Teracube features a customized version of Android known as Thrive OS, enabling parents to authorize all app installations, filter web browsing, set application-specific and overall screen time restrictions, monitor location, and develop personalized routines for school or bedtime. However, due to its more conventional smartphone capabilities, it’s primarily suggested for older children.

Thrive is currently priced at $99, with plans starting at $35 a month.

Ooma MyPhone

Image Credits:Ooma

In contrast to the other entries in this roundup, Ooma MyPhone is not a mobile device. This child-oriented home phone is crafted as a contemporary substitute for the traditional household landline.

The service permits calls solely between confirmed contacts via its Trusted Circle feature, offers scheduled Quiet Hours, provides address-based 911 support, sends emergency notifications when 911 is dialed, and allows parents to examine call logs through an online platform. There are no applications, web browsing, texting, or social media functions.

The phone retails for $99.99, with service commencing at $7.99 monthly.

Tin Can

Image Credits:Tin Can

At a price of $100, Tin Can is designed to mimic a landline phone while featuring a unique tin can design, which inspired its name.

This device does not necessitate a traditional phone outlet but connects via Wi-Fi. Calls can only be made to approved contacts, successfully preventing spam or unauthorized communications. Parents can easily manage contacts through an intuitive companion app.

Tin Can provides a complimentary plan for calling other Tin Can users and offers a $9.99 monthly plan that permits calls to all approved contacts.

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Amazon resolving issue that overcharged certain AWS clients billions of dollars

Amazon resolving issue that overcharged certain AWS clients billions of dollars

Some clients of Amazon’s cloud services awoke on Friday to an unexpected bill estimate indicating they owed billions for cloud services that they had never utilized.

On Friday, Amazon verified that it is working to fix a malfunction in its Amazon Web Services (AWS) billing portal that displayed certain customers as “owing” millions or billions in cloud computing fees. 

In an update on its status page, Amazon noted that it started noticing erroneous billing information late Thursday. However, by Friday morning, the company acknowledged that the “rollback of a recent modification did not fix the problem.” Amazon stated that the modification pertains to its billing computation subsystem.

The positive news for those customers who were informed they “owe” millions or billions to Amazon is that they are likely not responsible. The billing estimates “do not represent actual usage and charges,” Amazon explained.

Based on various screenshots shared by Amazon customers on Reddit, one customer received a billing estimate nearing $2.5 billion for this month’s AWS usage, while others encountered similar notifications, ranging from a few million dollars to several hundred million dollars.

When contacted via email, Amazon spokesperson Aisha Johnson directed TechCrunch to the company’s status page and did not provide further comments or answer inquiries regarding the bug. The company did not disclose, when asked, if any AWS accounts had been suspended or paused due to the issue.

The problem is anticipated to persist for several more hours, according to Amazon’s status page.

Updated with a response from Amazon.

Patreon ceases requesting AI bots to refrain from scraping — and begins to block them

Patreon ceases requesting AI bots to refrain from scraping — and begins to block them

Patreon, the platform for creator memberships, is intensifying efforts against AI scraping content for training purposes. On Thursday, the business announced its collaboration with internet infrastructure provider Cloudflare to directly prevent AI bots from accessing creators’ work without consent for their AI model training.

The enhanced measures were essential, as AI scraping methods have grown more advanced since initial deterrents were established in 2023, according to the company. Moreover, Patreon’s paywall has traditionally kept much of the creators’ work beyond the reach of crawlers. Recently, however, the platform unveiled new discovery features like a revamped Home Feed and its tweet-style Quips, which might allow more of the content to be accessible to crawlers.

These modifications coincide with a rising awareness among online publishers and content creators regarding AI’s consumption of their work to enhance model intelligence. In response, Cloudflare now provides tools enabling website publishers to limit AI bots, including a marketplace allowing websites to charge for scraping activities, termed Pay Per Crawl. Earlier this month, it updated its policies to block “mixed-use” crawlers—those that both index and train on a site’s content—by default on any ad-hosting pages.

Patreon is expanding its partnership with Cloudflare to utilize the company’s AI Crawl Control technology to refine its AI policies and enforcement measures. The key difference now is that rather than merely requesting AI crawlers refrain from scraping using the robots.txt files—a conventional way to instruct bots on site usage—Patreon is proactively preventing AI training bots from accessing content.

“Consent shouldn’t rely on the scraper’s choice of conduct,” explains a post on the Patreon blog, mentioning the stricter policies.

During feature testing, the weekly attempts by individual AI training crawlers to access Patreon dropped from “thousands of attempts to zero,” the post highlighted. This suggests that the AI scrapers were disregarding Patreon’s robots.txt file and continued to scrape the site, despite requests to cease.

Nonetheless, the company stated it will permit bots that index pages and arrange information that could redirect users back to Patreon.

“As AI agents grow in capability and popularity, creators should have a significant influence over how their work is utilized by AI firms,” noted Patreon’s product chief Drew Rowny in the announcement. “On the majority of the Internet, creators are compelled to endure AI training on their work merely to connect with and expand an audience. Patreon envisions a different approach: creators ought to have the ability to expand their audience and dictate how their work is utilized.”

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reMarkable's latest Paper Pure is impressive. That's the reason I decided to pen this review about it.

reMarkable’s latest Paper Pure is impressive. That’s the reason I decided to pen this review about it.

For a considerable time, reMarkable’s core principle has centered on minimizing screen time and crafting an experience reminiscent of writing with pen and paper. With the introduction of the reMarkable Paper Pure, the brand persists in its commitment to producing a device that stands in opposition to smartphones, tablets, and laptops. Owing to its absence of notifications and multitasking software, the Paper Pure is designed to appeal to writers, designers, and researchers who seek an undistracted environment for reading and writing.

In my evaluations of devices, I often jot down or document notes in various forms, utilising multiple applications, and sometimes even different gadgets. However, considering this device is tailored for writing, I found it appropriate to compose the review directly on the reMarkable Paper Pure. This entire review has been penned on the tablet using its handwriting conversion capability and refined on WordPress.

The newly priced $399 reMarkable Paper Pure tablet is the successor to the reMarkable 2, which debuted six years prior. During this time, the company opted to unveil the $499 Paper Pro, featuring a color display, along with a more compact Paper Pro Move for enhanced portability.

The Paper Pure returns to foundational principles with a monochrome display in a notebook size. It boasts a 10.3-inch
screen, matching the size of the reMarkable 2. The company has adjusted the resolution, rendering the display wider and shorter. This alteration allows for more text to fit on the horizontal line while reading and writing. Having previously tested the reMarkable 2, I find the writing experience on the new tablet to be sharper.

Beyond the hardware enhancement, the company has incorporated software functionalities that facilitate access to content outside the tablet. It has also refined its handwriting search feature to enable you to search throughout notes.

Image Credits:Ivan Mehta

A convenient new functionality is the ability to sync your calendar with the tablet. This feature enables you to review meeting details from the calendar icon on the device and subsequently begin taking notes within the specific meeting segment.

Upon completion, you can convert handwritten notes and share them effortlessly with one touch. You will receive an email link to access and distribute these notes to others. When I utilize meeting note-taking software for transcriptions, I find revisiting my notes beneficial for adding thoughts or posing follow-up questions later on.

Similarly, you can share your other notes in the same manner, accessing them via email or through reMarkable’s new web application.

reMarkable has enhanced the external reading experience with the launch of Paper Pure. Now, articles can be sent as a native notebook to the tablet, simplifying the process of highlighting sections, jotting down notes, and transferring it to the web app. (I do wish the company would categorize articles into a separate folder by default, however.)

The device has seen improved performance when handling various documents. Integrating Drive, Dropbox, or OneDrive for document import and export is a straightforward process. Imported documents are formatted as notebooks for editing.

Yet, the device still does not handle PDFs optimally. When I imported the review guide for Paper Pure, the edges were truncated. While reMarkable supports ePUB formats, the reading experience does not quite measure up to that of dedicated e-readers like Kindle.

Remarkable
Image Credits:Ivan Mehta

The positioning of reMarkable is explicit: It primarily serves as a tool for note-taking, conceptualizing ideas, and reading articles or documents. This device will not function as an all-encompassing gadget for both reading literature and taking notes.

I recognize reMarkable’s role as a supplemental device with minimal technology to distract. I also appreciate the allure of simply sitting with a device and jotting down thoughts. However, once I have taken those notes, I may prefer to seamlessly sync them with my other notes and conduct searches across them. reMarkable doesn’t necessarily need to incorporate additional AI features into the device, but it could be intriguing to observe how the company engages with other AI tools after note export.

Priced at $399, the device is not inexpensive. Nonetheless, the fundamental promise of distraction-free writing is fulfilled. When composing on my MacBook, I often find myself sidetracked by applications or open tabs, akin to rummaging through my refrigerator for snacks. Previously, I would frequent a café to contemplate story ideas, but utilizing an internet-connected device proved ineffective. As I grew more accustomed to the reMarkable Paper Pure, I found it practical to carry just this tablet for jotting down ideas or drafting initial versions, gaining confidence that its software efficiently converted my less-than-ideal handwriting as well.

The base model of Paper Pure, priced at $399, includes a stylus. Additionally, there is a $449 bundle that features a Marker Plus stylus, which includes an eraser function, alongside a sleeve folio available in various colors.

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No product? No issue. This Disrupt 2026 session demonstrates how to obtain pre-seed funding with confidence, narrative.

No product? No issue. This Disrupt 2026 session demonstrates how to obtain pre-seed funding with confidence, narrative.

It’s not only you: AI startups are securing substantial seed funding, thereby complicating the process for those seeking funding at even the pre-seed phase. We’ve explored this trend comprehensively, and during TechCrunch Disrupt 2026, we aim to assist pre-seed founders who are now facing expectations typically reserved for seed-stage ventures. 

With AI accelerating the creation of a minimum viable product like never before, is there any hope for a founder with a strong concept but no tangible proof to present? This is what our panel titled “Winning Pre-Seed Without a Product” aims to address. 

Moreover, it’s just one of the many sessions you can anticipate at our well-loved Builders Stage during Disrupt 2026. This is where our most focused discussions and workshops are held, addressing everything from operational decisions, fundraising, go-to-market strategies, and other crucial topics. 

You can join in by securing your ticket to attend Disrupt 2026 in San Francisco at Moscone West from October 13-15, at the most favorable prices available for the rest of the year. 

Regarding this particular session, we’ve assembled an excellent trio of speakers to share their expertise on this complex and significant subject. 

Sandhya Venkatachalam: Founder, Managing Partner, Axiom Partners 

Image Credits:Axiom Partners

Venkatachalam has a wealth of knowledge regarding successful exits and understands what investors are seeking when committing to companies poised for eventual acquisitions. She currently oversees the newly established Axiom Partners, an early-stage, $52 million venture fund designed to connect founders with elite AI practitioners, aiming to foster AI that leads to tangible improvements in the real world. 

Previously, she was a GP at Khosla Ventures and Social Capital, where she first invested in Groq and led funding into GalileoAI, ForethoughtAI, and FirefliesAI, all of which have either been acquired or attained unicorn status. 

Puneet Agarwal: Managing Partner, True Ventures 

Image Credits:True Ventures

True Ventures has established itself as a cornerstone of the startup ecosystem, focusing on early-stage companies dating back to 2005. Agarwal has been part of the team for nearly that entire duration, joining in 2008 and now ascended to managing partner, with a keen focus on the evolution of enterprise infrastructure and applications in the AI age. 

If you seek expert insights into what VCs desire, Agarwal is at your service. True Ventures is more than just a fund; it encompasses 12 funds, fostering partnerships with over 500 companies and 1,050 founders leading to more than 60 acquisitions and seven IPOs. 

Austin Clements: Managing Partner, Slauson & Co. 

Image Credits:Slauson & Co.

Slauson & Co. may not match the scale of True Ventures, yet their mission and Clements’ contributions are especially noteworthy for the founders in attendance. They emphasize economic inclusion and empower small businesses, with Clements initiating an accelerator within the firm to advance this mission even further.  

His efforts to expand the founder community through inclusive initiatives are reflected in his role as the founding chair of PledgeLA, an initiative that collaborates with the Annenberg Foundation and the Los Angeles mayor’s office to enhance diversity within the tech sector.  

Readers may recognize one of Slauson & Co.’s successful investments: Glīd!, the victor of Startup Battlefield 2026. 

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Learn from experts, embrace the excitement of Disrupt 2026 

These speakers are just the tip of the iceberg as we unveil the programming for Disrupt 2026, leading up to our kickoff on October 13 in San Francisco.  

Let the highlight of Battlefield serve as a reminder that Disrupt encompasses not only valuable insights and sessions but also celebrates the community, helps you learn from their achievements and challenges, and prepares you for the next phase of your journey. Whether you are a founder, investor, or wear any number of crucial hats in the startup ecosystem, now is the perfect moment to secure your ticket for Disrupt 2026!

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Zoox announces software recall following a robotaxi's confusion caused by dense smoke

Zoox announces software recall following a robotaxi’s confusion caused by dense smoke

Zoox has initiated a software recall following a scenario in June where one of its robotaxis had difficulty navigating an emergency fire scene filled with smoke.

The Amazon-owned entity announced on Friday that it has dispatched a software update to its fleet of 105 vehicles aimed at correcting the issue. Zoox informed TechCrunch via a statement that the update “improves the current ability to identify active [emergency] situations by incorporating the capability to detect and respond to significant smoke in certain conditions.”

At the time of the incident in June, there were no occupants in the vehicle, and Zoox reported to the National Highway Traffic Safety Administration (NHTSA) that it is unaware of any injuries linked to the issue. The NHTSA’s report does not specify the location of the June occurrence, and Zoox chose not to disclose it.

The recall from Zoox comes just days after NHTSA administrator Jonathan Morrison cautioned self-driving vehicle firms against obstructing emergency responders in a letter.

“To be clear: the failure to recognize and effectively respond to such scenarios signifies a functional shortcoming,” he stated. “Emergency situations are not infrequent or exceptional ‘edge cases.’ Therefore, NHTSA is currently issuing a call to action for AV developers and operators to urgently allocate their efforts towards rectifying this issue.”

TechCrunch previously highlighted how Waymo has faced ongoing conflicts with first responders as it ventures into new locations. As of March this year, the company had recorded at least six instances where first responders needed to physically relocate robotaxis from emergency sites.

According to the report by NHTSA regarding the recall, on June 20, a Zoox robotaxi “encountered dense smoke that obscured an active emergency fire scene which was not marked off with cones.” The Zoox vehicle “braked abruptly while attempting to avoid the situation before ultimately stopping.” A Zoox teleoperator was able to maneuver the vehicle away from the scene, enabling first responders to set up traffic cones.

Zoox informed NHTSA that it performed an investigation to determine the underlying cause and recognize any similar occurrences. The company stated “this is the sole occurrence of this nature that Zoox has faced,” and that during late June and early July, it engaged in numerous discussions with the safety authority about the “gravity, recurrence, and fundamental causes.” Zoox made the decision to recall on July 7, a day prior to Morrison’s correspondence.

This is not the inaugural recall for Zoox. The business voluntarily recalled vehicle software in March 2025 to rectify a hard-braking concern that NHTSA had been examining since 2024. It executed two additional recalls in May 2025 following a collision with a passenger vehicle and an incident involving a Zoox vehicle that was hit by an e-scooter rider.

Zoox has been progressively broadening its testing to additional cities and is providing complimentary rides in Las Vegas and San Francisco, in preparation for a forthcoming commercial rollout. This launch is contingent on the NHTSA granting the company an exemption from certain Federal Motor Vehicle Safety Standards, due to the fact that Zoox’s robotaxis do not feature a steering wheel or pedals. The NHTSA has also recently suggested eliminating the brake-pedal requirement for vehicles designed for full autonomy.

This piece has been revised with a statement from Zoox.

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Reasons behind the initial GPU investors pivoting to inference chips in a $400 million agreement

Reasons behind the initial GPU investors pivoting to inference chips in a $400 million agreement

General Compute, a cloud startup specializing in AI inference, has secured a $400 million loan from Upper90, a technology investment firm. This could mark the inaugural instance of using inference-specific chips as collateral — these chips are engineered to efficiently execute pre-trained AI models quickly, as opposed to the pricier chips utilized for creating the models initially.

This financing indicates that markets are reacting to concerns regarding the costs of AI tools and tokens by seeking infrastructure capable of running open-source models at lower costs compared to the latest LLMs from leading labs.

Founded by CEO Finn Puklowski and CTO Jason Goodison, General Compute raised a $15 million seed round in May to develop an inference neocloud powered by silicon from SambaNova, a chip producer backed by Intel. (Neoclouds are specifically designed for AI tasks, contrasting with the general-purpose infrastructure provided by traditional hyperscalers like AWS or Azure.)

The company’s SN50 chips are crafted for inference. They boast power efficiency and do not necessitate costly water-cooling systems, allowing for faster deployment across a wider range of data centers compared to GPUs. General Compute claims that these new chips will deliver 16 times the inference speed of GPU-based clouds.

The hurdle lies in acquiring a significant quantity of these chips, particularly for a newly established company.

Upper90 co-founder and CEO Billy Libby, a former quantitative trader from Goldman Sachs, had a strategy for this: In 2021, his firm financed the GPU acquisitions of Crusoe, the energy-centric data center startup, which he believes was the inaugural loan against advanced chip value.

Conventional lenders were hesitant about such agreements due to the risks and uncertainties surrounding GPU depreciation. However, as CoreWeave transformed chips-backed loans into a viable business model followed by a remarkable IPO, this type of financing has become increasingly prevalent.

“When we financed Nvidia GPUs as the pioneers in that space, the market was inefficient,” Libby shared with TechCrunch. “We could really assemble something as early participants and be compensated for the risk.”

Now that GPUs are much better understood and possibly over-purchased, Upper90 is looking at firms like General Compute to capitalize on the forthcoming wave of the AI expansion. “We believe open-source models will be significant, and last year we searched for a player focused on inference,” Libby noted. “Not everyone needs a supercomputer, but they do need inference and AI.”

This perspective has gained momentum, with companies offering access to open models, such as OpenRouter and Fireworks, securing new funding rounds at substantial valuations. New models like Kimi’s K3 have shown they can compete with the latest releases from Anthropic and OpenAI on coding benchmarks. Additionally, emerging chipmakers like Groq and Cerebras have caught the attention of acquirers and public markets.

General Compute’s capacity to access chips beyond Nvidia’s ecosystem is crucial for the same reasons. TensorWave, another AI infrastructure player, is making a similar wager by partnering with AMD. As more alternatives to Nvidia become available, compute providers not tied to Nvidia agreements might gain an edge in offering cost-efficient inference.

“Several chips are beginning to scale that have excellent [total cost of ownership], or that can operate significantly faster than Nvidia, but the buyer pool is limited,” Puklowski mentioned. “By collaborating with Upper90, this signifies more than just a ‘cool startup received funding for compute.’ This represents the initial indication of capital organizing itself and the disintegration of Nvidia’s monopolistic hold.”

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