David Sacks is Trump’s new crypto czar, Google can now identify your emotions, and apps to mend your broken heart
Main Themes: AI advancements and concerns: Google's new AI model, PaliGemma 2, raises ethical concerns about emotion detection capabilities while xAI secures massive funding, highlighting the increasing investment and competition in the AI field. Crypto landscape shifts: David Sacks' appointment as the White House "AI & Crypto Czar" signals the incoming administration's focus on these emerging technologies, while Dubai emerges as a hub for crypto scams and Zopa postpones its IPO amidst market uncertainties. Funding trends: The newsletter highlights a range of funding activities, from massive rounds for AI and robotics companies to smaller seed investments for diverse startups. It also reveals investor optimism for increased deal flow in 2025. Key Facts and Ideas: xAI's successful funding round: Elon Musk's xAI raised a significant $6 billion, reaching a $50 billion valuation. This highlights the fierce competition with OpenAI and the increasing interest from major investors like Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, and Qatar Investment Authority. Ethical concerns about Google's emotion-detecting AI: Google's PaliGemma 2 boasts the ability to identify emotions in images, sparking worries among experts. "This is very troubling to me,” says Sandra Wachter, a professor at the Oxford Internet Institute. “I find it problematic to assume that we can ‘read’ people’s emotions. It’s like asking a Magic 8 Ball for advice.” This development fuels the ongoing debate about the ethical implications and potential misuse of AI technology. David Sacks appointed as "AI & Crypto Czar": President-elect Donald Trump's appointment of David Sacks to this newly created role suggests a focus on regulating and leveraging AI and cryptocurrencies during his term. This move will likely have significant implications for the development and adoption of these technologies. Dubai's crypto scam problem: Dubai's emergence as a crypto hub is shadowed by reports of it being a "central hub for crypto scams." This raises concerns about the need for robust regulations and investor protection measures in rapidly evolving crypto markets. Zopa's IPO postponement: The UK neobank, Zopa, opted to postpone its IPO due to the challenging tech IPO market, raising an $85 million round instead. This decision reflects the current uncertainties and investor caution within the technology sector. Other Notable Points: Increased dealmaking optimism for 2025: Affinity's private capital predictions report indicates a positive outlook, with over 70% of surveyed firms expecting to close more deals next year. "Haw Tuah" memecoin pump and dump controversy: Haliey Welch, the face of the "Haw Tuah" meme, denied accusations of manipulating the memecoin's price, highlighting the volatile and often speculative nature of the memecoin market. Jeff Bezos' non-cynical approach: At the DealBook conference, Bezos expressed his trust in Elon Musk, stating, “I’ve had a lot of success in life not being cynical — and I very rarely have been taken advantage of as a result. Why be cynical about that?” This comment provides insight into Bezos' leadership philosophy and approach to business dealings. Overall, the StrictlyVC newsletter paints a picture of a rapidly evolving tech landscape marked by significant AI advancements, regulatory shifts in the crypto space, and changing funding dynamics.