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šŸ•¶ļø VCs love AIā€”but hate saving the planet?

Uber eyes a Tesla partnership to integrate robotaxis

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Happy Tuesday, StartupClubbers!

U.S. tech firms are moving production out of China, while Xi Jinping scrambles to restore business confidence at home. AI is everywhere, from OpenAIā€™s latest ChatGPT update to machines learning animal emotions, and Uber is eyeing Teslaā€™s robotaxis to boost profits šŸš—

But not all futures get funded. VCs are ghosting climate tech, slowing progress on critical solutions. And as TikTokā€™s ownership saga drags on, the tension between politics and innovation isnā€™t letting up šŸ‡ØšŸ‡³šŸ‡ŗšŸ‡ø

Also, this is our video pick of the day: What NOBODY tells you about selling a startup.

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Six bullets of updates

  1. šŸ­ U.S. tech firms shift production from China to Southeast Asia and India, driven by geopolitical tensions and supply chain risks.

  2. šŸ¤– New AI models flood the market, from OpenAIā€™s o3-mini to DeepSeekā€™s R1ā€”part of a wave surpassing 900k models.

  3. šŸ“„ OpenAI updates ChatGPT with a 187-page Model Spec promoting ā€œintellectual freedomā€ and refining AI behavior.

  4. šŸš— Uber eyes a Tesla partnership to integrate robotaxis, leveraging 33 million daily trips to boost profits.

  5. šŸ‡ØšŸ‡³ Xi Jinping pledges support for private enterprises in China, seeking to restore business confidence amid economic concerns.

  6. šŸ¾ Researchers train AI to interpret animal emotions, aiming to better understand animal behavior and improve welfare.

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VCs are ghosting climate tech ā€“ and itā€™s a problem

Source: Unsplash

Sustainability tech has been hyped as the future, with a projected $75 trillion in investment needed by 2050 to reach net zero. Yet, behind the buzz, VC funding for climate and sustainability startups has quietly plummeted since 2021. Unlike AI startups that secure millions in weeks, climate innovators often face years of fundraising struggles. The reason? Venture capitalā€™s obsession with rapid growth and massive returns clashes with the slower, complex reality of scaling sustainability solutionsā€”especially those requiring hardware or buy-in from multiple stakeholders.

To fix this disconnect, investors need to rethink their approach. Forward-thinking VCs are blending traditional funds with impact capital, offering revenue-based financing, or creating longer-term evergreen funds better suited for climate techā€™s development cycles. Hands-on supportā€”like securing pilot programs with corporatesā€”can fast-track adoption. Most importantly, success metrics must evolve beyond SaaS-style growth charts to reflect both financial returns and environmental impact. If VCs fail to adapt, they risk not only missing the next wave of transformative innovationā€”but also delaying the solutions we need to fight the climate crisis.

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Startup Events and Deadlines

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These companies just raised money

  1. šŸš€ Elon Muskā€™s xAI is in talks to raise $10B at a $75B valuation, planning $5B on Dell servers for Grok models.

  2. šŸ¤– Figure AI seeks $1.5B at a $39.5B valuationā€”15x its last roundā€”driven by humanoid robot hype.

  3. šŸ’Š Healthcare AI startup Abridge raises $250M to expand its AI-powered medical transcription and clinical documentation platform.

  4. šŸ¢ Saudi Aramco invests in UK AI startup Ori after a Ā£140M round led by TelefĆ³nica, boosting Saudi-UK tech ties.

  5. šŸ›”ļø AI security startup Dream raises $100M at a $1.1B valuation, as AI investment heats up.

  6. šŸ§® Polymath raises $1M for its educational sandbox game making math fun, attracting thousands of users globally.

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Accomplish More. Juggle Less.

When you love what you do, it can be easy to take on more ā€” more tasks, more deadlines, more hours ā€“ but before you know it, you donā€™t have time to do what you loved in the beginning. Donā€™t just do more ā€“ do more of what you do best.

BELAYā€™s flexible staffing solutions leverage industry experience with AI systems to increase productivity without sacrificing quality. You can accomplish more and juggle less with our exceptional U.S.-based Virtual Assistants, Accounting Professionals, and Marketing Assistants. Learn how with our free ebook, Delegate to Elevate, and leave the more to BELAY.

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Ban, buy, repeat: TikTokā€™s wild ride isnā€™t over

Source: Unsplash

TikTokā€™s future in the U.S. remains uncertain as regulatory pressure and acquisition talks intensify. Concerns over user data security and potential influence from the Chinese government have fueled tensions since 2020, when former President Donald Trump first attempted to ban the app. After years of legal battles, the Biden administration continued the push, with Congress passing legislation that could force ByteDance, TikTokā€™s Chinese parent company, to sell its U.S. operations or face a ban. Though TikTok briefly shut down in January following a Supreme Court ruling upholding the ban, it was swiftly restored after Trump intervened, granting a 75-day extension for a potential sale.

Amid this backdrop, several investor groups are competing to acquire TikTokā€™s U.S. unit, estimated to be worth over $60 billion. The Peopleā€™s Bid, led by former Dodgers owner Frank McCourt, emphasizes privacy and data control, with notable supporters like Kevin Oā€™Leary and Tim Berners-Lee. Another consortium, headed by Employer.com CEO Jesse Tinsley, includes Robloxā€™s David Baszucki and YouTuber MrBeast, offering $30 billion in cash. Meanwhile, tech giants like Oracle, Microsoft, and Walmart have reemerged as contenders, alongside figures like ex-Activision CEO Bobby Kotick and former Treasury Secretary Steven Mnuchin. As negotiations progress, TikTokā€™s fate remains a pivotal issue at the intersection of tech, politics, and global business.

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What NOBODY Tells You About Selling a Startup

The reason tech startups can secure millions in funding for just a small percentage of equity is the anticipation that eventually, the company will go public or be acquired. However, selling a company is a lengthy and challenging processā€”something I wasn't prepared for, and no one warned me about it šŸ•¶ļø SUBSCRIBE for more!

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