Is December Bringing a Startup Winter?

Welcome to Startups Weekly, where you can sign up to receive the newsletter every Friday. Borrowing has become more expensive, and profits are harder to come by in 2023, leading to a savage year in startup land. Data suggests that approximately 3,200 startups have gone under, representing a total of $27.2 billion in venture funding. Many startups are in zombie mode, unable to grow or raise money, but barely avoiding shutdown. Layoffs are happening, and more startups will shut down to avoid dragging the inevitable into a new tax year. This will be explored more deeply in the coming weeks.
In our AI-related news this week, we have exciting developments in using AI to enhance old shows and the continued relevance of traditional AI models in enterprises. Additionally, Elon Musk is chasing a cool $1 billion for his latest AI venture, xAI. Musk has also made headlines for his unique management style and ventures like SpaceX’s acquisition of a parachute company. Startups like ZestMoney, Doubtnut, and Veev have faced difficulties and ultimately shut down. Other notable articles this week include Anduril’s new fighter jet weapon, MIT’s Liquid AI, and ex-SpaceX engineers working on a “vegetarian rocket engine.”