Tech Industry Sees Major Moves in AI, Autonomous Vehicles, and Startup Funding
The tech world witnessed a flurry of activity on Monday, with significant developments in artificial intelligence, autonomous vehicles, startup funding, and software. Key headlines include SpaceX acquiring xAI to build space-based data centers, Waymo raising $16 billion to expand its robotaxi fleet, Adobe discontinuing Adobe Animate, and the launch of a $2 million startup accelerator for students.
Elon Musk's SpaceX acquired his artificial intelligence startup, xAI, with plans to construct data centers in space, the spaceflight company announced. Musk, also the CEO of SpaceX, explained in a memo posted on the company's website that the merger is primarily focused on creating space-based data centers. He argued that current AI advancements rely on large terrestrial data centers, which require substantial power and cooling. "Global electricity demand for AI simply cannot be met with terrestrial solutions, even in the near term, without imposing hardship on communities and the environment," Musk wrote. It should be noted that xAI has faced accusations of imposing hardship on communities near its data centers in Memphis, Tennessee.
Waymo, Alphabet's autonomous vehicle company, secured $16 billion in funding to scale its robotaxi fleet internationally, according to a blog post on Monday. The company plans to expand its driverless taxicabs to over a dozen new cities this year, including London and Tokyo. Dragoneer Investment Group, DST Global, and Sequoia Capital led the funding round, which values Waymo at $126 billion. Parent company Alphabet supported the round and maintained its position as majority investor. The round also included significant investments from Andreessen Horowitz and Mubadala Capital, as well as Bessemer Venture Partners, Silver Lake, Tiger Global, and T. Rowe Price. Additional investors included BDT MSD Partners, CapitalG, Fidelity Management Research Company, GV, Kleiner Perkins, Perry Creek Capital, and Temasek.
In other news, Adobe announced it would discontinue its 2D animation software, Adobe Animate, on March 1, 2026, as the company increases its investments in AI. Adobe issued an update to its support site and sent emails to customers on Monday. Enterprise customers will receive technical support through March 1, 2029, to facilitate the transition, while other customers will have support through March of next year. The decision has been met with "incredulity, disappointment, and anger" among Adobe Animate users, who are concerned about the lack of alternatives that mirror Animate's functionality, according to TechCrunch. One customer pleaded with Adobe on X to at least open-source the software.
Meanwhile, two Stanford students launched Breakthrough Ventures, a $2 million accelerator program aimed at funding businesses founded by college students and recent graduates nationwide. Roman Scott and Itbaan Nafi began building the accelerator program after hosting a series of popular Demo Days at Stanford starting in 2024 and decided to expand it after students were achieving success. "This fundraise turns Breakthrough from just being a seasonal accelerator into a lifelong partnership with our founders," Nafi, who is still a masters candidate at Stanford, told TechCrunch. Scott received his undergraduate degree from Stanford in 2024 and went on to earn a masters degree there the following year. Early last year, the duo tapped Raihan Ahmed to lead the accelerator.
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