Startups Weekly: EV Sector Struggles, Peloton’s Decline & Key Tech Updates

Welcome to Startups Weekly, your essential roundup of the most pivotal developments in the startup ecosystem. From Apple’s latest innovations to the turbulence in the EV industry, here’s what you need to know this week.

Apple’s Big Reveal: New iPads, M4 Chips & More

While Apple may no longer qualify as a startup, its product launches remain a major draw. This week, the tech giant unveiled:

  • New iPad Air & Pro models featuring the powerful M2 and M4 chips
  • Revolutionary tandem OLED displays for the iPad Pro
  • A redesigned Magic Keyboard and Pencil Pro with enhanced functionality
  • Landscape-oriented front camera—a long-overdue design improvement

These updates solidify Apple’s positioning of iPads as laptop alternatives rather than oversized iPhones.

Top Startup Stories of the Week

1. Newchip’s Accelerator Debacle Leaves Startups in Limbo

Lacey Hunter’s AI humanitarian aid startup, TechAid, joined Newchip’s accelerator program hoping for growth. Instead, Newchip filed for bankruptcy, auctioning warrants from over 1,000 startups. Hunter was forced to shut down TechAid—a cautionary tale for founders evaluating accelerator programs.

2. Microsoft Bans Police Use of Azure OpenAI for Facial Recognition

Microsoft updated its terms to prohibit U.S. police departments from using its Azure OpenAI Service for facial recognition. This move highlights growing scrutiny over AI ethics in law enforcement.

3. Rabbit R1: Half-Baked or Strategically Minimal?

The Rabbit R1 AI gadget launched with limited functionality, sparking debate. While some criticize its lack of polish, others argue its simplicity is intentional—a stepping stone toward broader AI integration.

4. Peloton’s Downward Spiral Continues

Once a home fitness darling, Peloton announced 400 layoffs (15% of its workforce) as CEO Barry McCarthy departs. The company’s valuation continues to plummet, raising questions about its future.

Transportation Sector Turmoil

Fisker’s Legal Woes Mount

EV startup Fisker Inc. faces a $13 million lawsuit from engineering firm Bertrandt AG over unpaid fees and withheld intellectual property. This adds to over 30 other lawsuits, signaling deep operational challenges.

Tesla’s Lidar Reversal

Despite Elon Musk’s past dismissal of lidar as a “crutch,” Tesla is now Luminar’s top customer, accounting for 10% of its Q1 revenue ($2 million). Meanwhile, Luminar laid off 20% of its staff.

Rivian’s Financial Struggles

Despite generating $1.2 billion in Q1 revenue, Rivian reported a $1.45 billion loss. Cost-cutting measures remain critical as the company strives for profitability.

Hyundai’s $1B Bet on Motional

Hyundai invested nearly $1 billion in self-driving startup Motional, securing a majority stake. This underscores the auto giant’s commitment to autonomous vehicle technology.

Notable Fundraises & Investments

  • Iconiq Capital raised $5.15 billion for its seventh flagship fund, outpacing compe*****s like Tiger Global.
  • CoreWeave secured $1.1 billion, valuing the GPU cloud provider at $19 billion amid soaring demand for AI infrastructure.
  • Rad AI landed $50 million from Khosla Ventures to streamline radiologists’ workflows—a pivot from Vinod Khosla’s earlier predictions about AI replacing doctors.
  • Honeycomb Insurance raised $36 million in Series B funding to modernize property inspections using AI.

Quick Tech Highlights

  • Deepfake Drama: Katy Perry’s AI-generated Met Gala image garnered 10 million views, showcasing the rise of synthetic media.
  • Jack Dorsey Exits Bluesky: The Twitter co-founder quietly left Bluesky’s board, raising questions about the platform’s direction.
  • Apple’s Controversial Ad: A dystopian iPad commercial sparked backlash for glorifying the replacement of physical creative tools.
  • Sperm Whale “Alphabet”: Researchers used machine learning to decode complex communication patterns among sperm whales.
  • Stack Overflow & OpenAI Partner: After initial resistance, Stack Overflow will now supply data to improve OpenAI’s programming-related responses.

Stay tuned for next week’s edition of Startups Weekly, where we’ll unpack more breakthroughs, challenges, and trends shaping the tech landscape.

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