Scale AI fell short of expectations

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Scale AI’s growth trajectory falls (slightly) short: It’s a bit gauche to fault a private-market company for only reaching $870 million worth of 2024 revenue. But in the case of richly-valued Scale AI, the company had “told prospective investors early last year that it expected to cross $1 billion in revenue” last year, The Information reports. The miss comes as Scale works to sort out a large share sale for existing stockholders. Scale backers needn’t worry, however, as the same article notes that the company grew 2.5x last year.
Apple taps India for US supply: The FT reports that Apple intends to move production of US-bound iPhones out of China and into the Indian market next year. Presumably the decision underscores the simple fact that mass-phone production is not moving to the States. More pertinent, the decision is a blow against China, long a stalwart base of Apple-predicated employment. But, with China-US trade barriers stuck in the stratosphere, Apple doesn’t have much choice other than to make one, and triple-down on India.
Manus raises from Benchmark: TWiST500 company Butterly Effect, which became known for its Manus AI product earlier this year, has raised around $75 million from Benchmark at a valuation of around $500 million, Bloomberg reports. During today’s TWiST taping, the gang was a little confused about the deal, given that Manus’ parent is Chinese, but presumably any issues relating to US dollars backing a Chinese company were sorted out before.

TWiST500

Why don’t we close out the week with something fun? Today on the show, Jason, Lon and I took a peek at Slate. It’s a new EV company flush with Bezos dollars that plans on selling a low-cost, low-tech EV pickup that can “transform” into a SUV. The little Slate truck is not fancy. The windows are manual. It doesn’t come with screens. You can add you own goodies, but the goal is something inexpensive, compact, and customizable.

Jason is bullish on the ability for future customers to quickly personalize their Slate. Me, too.

I’ve long wanted a small pickup. I carry things to and fro, but don’t have the room where I live for a full-sized American non-dumping dump truck. And I am cheap. Therefore, what Slate is cooking up quite literally has my name on it.

And I can get it with a racing stripe? C’mon now, I’m already convinced.

We’re adding Slate to the TWiST500 because it has raised nine-figures worth of private-market capital, which means it’s a startup that we can track. And because we’re bullish as hell about its chances.

Of course, building a car company is hard. Very hard. Nearly impossible. A great way to lose money. A pile of cash-bricks pre-soaked in kerosene sitting next to an open flame. So, Slate might not make it. But if a new car company needs an angle on what’s currently in the market, Slate certainly has a shot. Let’s see. — Alex

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This Week in Startups

E2116: Jason’s calling in from New York for an absolutely JAM-PACKED episode of TWiST. He’s chatting with Alex and Lon about the insane growth curve of AI startup Cursor, evaluating whether or not Uber is using “dark patterns” to hold on to its top customers, AND gauging the long-term effects of tariff uncertainty on the market. PLUS we’ve got a chat with GoShare CEO Shaun Savage on the importance of obsessing about customers AND another exciting Founder Friday match-up.

E2115: We who are about to TWiST salute you! On a Sunday night pre-recorded Easter Weekend special, Jason and Lon look at OpenAI’s hallucinatory new models, behind-the-scenes Meta docs hinting at Zuckerberg’s FB-related woes, and China’s humanoid robot half-marathon. PLUS Alex chats with Thalamus founder Jason Reminick about how he’s helping to match medical residents with the ideal hospitals.

E2114: It’s Friday TWiST! Jason, Alex, and Lon chat about LMArena’s pivot from research project to full-blown company, the rise of application-layer AI startups, and they muse about the future of autonomous drone and weapons systems. PLUS a brand-new “Tips from the Trenches” featuring design and product UX advice from branding expert Scott Bair!

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