VCs are betting billions on AI's next wave, so why is OpenAI killing Sora?

When an 82-year-old Kentucky woman was offered $26 million from an AI company that wanted to build a data center on her land, she said no. Sure, that same company can try to rezone 2,000 acres nearby anyway, but as AI infrastructure stretches further into the real world, the real world is starting to push back.  That tension is everywhere this week, from OpenAI shutting down its Sora app to courts finally starting to hold social platforms accountable. On this episode of TechCrunch's Equity podcast, Kirsten Korosec, Anthony Ha, and Sean O'Kane dig into what it looks like when the AI hype cycle meets reality.  Listen to the full episode to hear about:  Why rival prediction market CEOs of Kalshi and Polymarket are co-investing in a $35M VC fund  How drone startups like Zipline, Lucid Bots, and Brinc are finding real traction where other robotics plays have stalled  What Kleiner Perkins' $3.5B raise says about where the biggest VC firms think the next AI wave is going  Why two separate court verdicts against Meta in the same week could be the “tobacco moment” for social media  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.  Chapters:  00:00 Intro  00:30 Would you turn down $26M for your farm?  03:56 Rivals Kalshi & Polymarket CEOs are investing together  10:28 Deals for drones: Zipline, Brinc & Lucid Bots  18:17 Kleiner Perkins goes all-in on AI with $3.5B raise  22:52 OpenAI shuts down Sora  28:04 Meta gets hit with dual verdicts  34:56 Outro  Learn more about your ad choices. Visit megaphone.fm/adchoices

Over the past few years, a new category of mobile apps has quietly exploded into a multi-billion dollar business. They're called “micro dramas” — short-form, mobile-first scripted shows designed to be watched vertically on your phone. Think soap opera meets TikTok, complete with secret billionaire romances, disapproving werewolf mothers-in-law, and cliffhangers engineered to keep users tapping. The leading app, ReelShort, made $1.2 billion in consumer spending last year alone.   On this episode of TechCrunch's Equity podcast, Rebecca Bellan and TechCrunch senior reporter Amanda Silberling sit down with Henry Soong, founder of Watch Club, who thinks the micro drama industry is still "in its MySpace era." He has a vision for what the Facebook moment could look like.  Listen to the full episode to hear:  Why micro dramas took off in China while Quibi burned through $2 billion and failed in the U.S., and what that gap reveals about content, product, and business model.  How Watch Club is targeting a completely different audience than ReelShort and Drama Box.  The tension between building an intentional social experience and optimizing for engagement the way TikTok does.  Whether AI is coming for the werewolf billionaire romance script. Amanda has thoughts.   Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.  Chapters:  00:00 Intro  01:11 Why micro dramas, and why now?  04:25 What makes Watch Club different  07:29 The monetization model problem  18:52 Optimizing for intentionality, not engagement  24:23 Why Quibby failed (content, product & business model)  28:22 Defensibility: tech company or studio?  31:36 AI, the WGA, and the future of storytelling  33:44 Outro  Learn more about your ad choices. Visit megaphone.fm/adchoices

Jensen Huang took the stage at Nvidia's GTC conference this week in his signature leather jacket to deliver a two-and-a-half-hour keynote, projecting $1 trillion in AI chip sales through 2027, declaring that every company needs an “OpenClaw strategy,” and closing with a rambling Olaf robot that had to get its mic cut. The message was hard to miss: Nvidia wants to be foundational to everything, from AI training to autonomous vehicles to Disney parks.  On this episode of TechCrunch's Equity podcast, Kirsten Korosec, Anthony Ha, and Sean O'Kane break down what Nvidia's growing web of AI infrastructure partnerships actually means for startups, and more of the week's headlines.  Listen to the full episode to hear about:  Travis Kalanick’s return building a "wheelbase for robots" with his new startup Atoms, and the crew has questions about Kalanick’s acquisitions along the way  Rivian’s partnership with Uber to build robotaxi versions of its R2 in a deal worth up to $1.25 billion, while pushing back its EBITDA target to do it  Frore landing a $1.64 billion valuation for its AI chip cooling systems  xAI rebooting, again, with only two of its original eleven co-founders still standing  Garry Tan's Claude Code setup went viral at SXSW (Spoiler: the crew is not impressed).  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.    Chapters:  00:00 Intro  00:20 Garry Tan's Claude Code setup goes viral at SXSW  03:37 Travis Kalanick is back with a new startup  12:51 Uber and Rivian's $1.25B RoboTaxi deal  20:54 Chip cooling startup Frore becomes a unicorn  22:56 Nvidia GTC recap: $1 trillion in sales projections  31:42 Elon Musk is rebooting xAI...again  36:37 Outro  Learn more about your ad choices. Visit megaphone.fm/adchoices

Artificial intelligence models are multiplying fast, and competition is stiff. With so many players crowding the space, which one will be the best — and who decides that? Arena, formerly LM Arena, has emerged as the de facto public leaderboard for frontier LLMs, influencing funding, launches, and PR cycles. In just seven months, the startup went from a UC Berkeley PhD research project to being valued at $1.7 billion.  On this episode of TechCrunch's Equity podcast, Rebecca Bellan catches up with Arena co-founders Anastasios Angelopoulos and Wei-Lin Chiang to determine how a team like theirs can build a neutral benchmark when the companies they’re ranking are also their backers.  Listen to the full episode to hear:  How Arena actually works, and why its founders say you can't game it the way you mighta static benchmark.  What "structural neutrality" actually means, and whether taking money from OpenAI, Google, and Anthropic is a conflict of interest.  How Arena is moving beyond chat to benchmark agents, coding, and real-world tasks with a new enterprise product.  Why Claude is currently winning the expert leaderboard for legal and medical use cases.  Arena's bet on what comes after LLMs, and why agents are next on the leaderboard.  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.    Chapters:  00:00 Intro  03:00 How Arena's leaderboard works, and why it's different from static benchmarks  07:00 Reproducibility concerns and how to scale  08:45 Can Arena stay independent while taking money from the labs it ranks?  11:15 Diversity, fraud prevention, and abuse mitigation  18:15 Arena's "data moat"  19:20 Agent benchmarking and expert leaderboards  21:40 Open sourcing data  22:45 How do Arena's rankings shape AI development?  24:15 Outro  Learn more about your ad choices. Visit megaphone.fm/adchoices

According to Index Ventures Partner Shardul Shah, cybersecurity startup Wiz sits “at the center of three tailwinds: AI, cloud, and security spend.” Those tailwinds powered what just became the largest venture-backed acquisition in history — Google's $32 billion deal, finalized after a declined 2024 offer, antitrust review on both sides of the Atlantic, and an extra $9 billion to sweeten the pot.    On this episode of TechCrunch's Equity podcast, Anthony Ha, Rebecca Bellan, and Sean O'Kane sit down with Shah to dig into what made Wiz worth that price tag, and also cover more of the week's headlines.    Listen to the full episode to hear about:  Why a DOGE employee allegedly walked out of the Social Security Administration with a thumb drive full of personal data, and the questions it raises about access to sensitive systems  Taya and Sandbar, the latest startups betting voice is the next big AI interface — but do normal consumers agree?  Palmer Luckey raising for a retro gaming startup at a $1 billion valuation  Meta’s acquisition of Moltbook, the viral AI agent social network  The latest in the Anthropic vs. DoD saga, including tech workers at OpenAI, Google, and Microsoft signing their names on a legal brief in support of Anthropic  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.    Chapters:  00:00 Intro  00:16 Did a DOGE employee steal your SSN?  02:53 AI note-taking wearables are back: Taya & Sandbar  09:18 Palmer Lucky's retro gaming startup ModRetro  13:39 Meta acquires AI agent social network Moltbot  18:54 Inside Google's $32B Wiz acquisition with Shardul Shah  28:41 Anthropic's lawsuit against the DoD  38:40 Outro  Learn more about your ad choices. Visit megaphone.fm/adchoices

For years, venture capitalists have been skeptical of beverage startups, citing thin margins and brutal distribution as reasons most brands never break out. But a new wave of “functional soda” companies has been challenging that assumption, including Poppi, the prebiotic soda brand that grew from a kitchen experiment into a $1.95 billion acquisition by PepsiCo.  On this episode of TechCrunch’s Equity podcast, Rebecca Bellan is joined by Poppi co-founder Allison Ellsworth to talk about building a beverage startup in a venture world dominated by SaaS and AI. From pitching on Shark Tank while nine months pregnant to scaling a digital-first brand during COVID, and now returning as a Shark herself, Ellsworth shares how social media, fast marketing bets, and customer feedback helped turn a niche drink into a category-defining company.  Listen to the full episode to hear about:  Ellsworth’s Shark Tank return, and how she evaluates founders on the other side of the pitch.  How Ellsworth turned a personal health issue into Poppi and built early traction at farmers' markets.  Why TikTok and community-driven marketing helped the brand rack up billions of views and loyal fans.  The risky decision to buy a last-minute Super Bowl ad, and how the team executed it in days.  What it’s like selling a startup to PepsiCo while trying to preserve the brand’s identity.  Why beverage startups almost inevitably need acquisition-level distribution to scale.  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.  Learn more about your ad choices. Visit megaphone.fm/adchoices

The Pentagon has officially designated Anthropic a supply-chain risk after the two failed to agree on how much control the military should have over its AI models, including its use in autonomous weapons and mass domestic surveillance. As Anthropic’s $200 million contract fell apart, the DoD turned to OpenAI instead, which accepted and then watched ChatGPT uninstalls surge 295%. As the stakes keep rising, the question remains: how much unrestricted access should the military have to an AI model?    On this episode of TechCrunch's Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O'Kane dig into what startups should think about when chasing federal contracts, especially when nobody seems to know what to do with AI in Washington, and more of the week's headlines.    Listen to the full episode to hear more about:  Paramount’s massive deal with Warner Bros, and the Equity crew’s ideas for what the new HBO Max-Paramount+ hybrid should be called  MyFitnessPal's acquisition of Cal AI, the calorie-tracking app built by teenagers  Who dropped $1 billion on Pinterest’s AI mission and how the company spent it on share buybacks. (Spoiler: Kirsten has thoughts.)  Anduril is raising again at a reported $60 billion valuation  Whether companies should brace themselves for the SaaSpocalypse, or if it’s just another chapter of the AI hype cycle   Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Does a consumer hardware company need to get on the VC treadmill to succeed? Eleven years and 290 million products sold across 115 countries later, PopSockets has proven that the bootstrapped, low-dilution path more viable than the industry gives it credit for. The global consumer hardware brand was built on less than $500k, no institutional capital, and a philosophy professor's determination.      On this episode of TechCrunch's Equity podcast, Dominic-Madori Davis caught up with founder and former CEO of PopSockets David Barnett to talk about how he scaled from a Boulder garage, stood up to Amazon at a $10–20 million cost, and eventually handed off the CEO role to someone who'd grown up inside the company.    Listen to the full episode to hear:  How a house fire and some insurance money became the unlikely seed funding for a global brand  What nearly sinking the company in manufacturing defects actually taught him about building one that lasts  How ignoring his investors' advice turned out to be the right call  What he looked for in a successor CEO (and why culture was non-negotiable)  What he'd do completely differently if he launched PopSockets today  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.    Chapters:  00:00 Intro  01:15 From philosophy professor to phone grip inventor  05:17 How a house fire funded PopSockets  07:33 Manufacturing nightmares nearly killed the business  10:08 The local toy store that proved it could work  13:14 The $20M Amazon standoff  16:09 Growing too fast?  18:20 Beating counterfeits in China through brand building  19:11 Why David never wanted to be CEO  23:07 The worst advice received, and what to do instead  26:35 Outro  Learn more about your ad choices. Visit megaphone.fm/adchoices

The Pentagon is playing chicken with Anthropic over who gets to control how the military uses AI while communities across the country are blocking data center construction. As the AI debate has been flattened to “doomers versus boomers,” one state legislator is attempting to walk a middle road.  On this episode of TechCrunch's Equity podcast, Rebecca Bellan sits down with Alex Bores, New York Assembly member and congressional candidate. Bores sponsored New York's first-of-its-kind AI safety law the RAISE Act — and quickly became the target of a Silicon Valley super PAC with $125 million to spend on attack ads.    Listen to the full episode to hear about:  The dueling super PACs now fighting over AI's future, and why Anthropic's $20 million bet on the pro-regulation side matters.  What the RAISE Act actually requires, why it's being called the blueprint for AI regulation nationwide.  Whether AI regulation ends up looking like finance and biotech or goes the way of social media — largely unregulated until the damage is done.  What's coming next from Bores’ office: bills on training data disclosure, content provenance, and a 43-point national AI framework.  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Crypto is creeping back into the startup conversation, but at ETH Denver last week, the buzz was as much about Washington as it was about tokens. Policy shifts are rippling through the market as Tether and stablecoins face scrutiny, players like Stripe re-enter the chat, and startups either find traction or flame out. The hype cycle is over, or at least taking a break. So what comes next?    On this episode of TechCrunch's Equity podcast, Rebecca Bellan sits down with Jacquelyn Melinek, CEO of Token Relations and host of the Talking Tokens and Crypto in America podcasts, to make sense of how the market has changed and what in the world of crypto is built to last.  Listen to the full episode to hear about:  Why ETHDenver fell flat despite a strong speaker lineup, and what it signals about crypto’s shifting hubs.  What White House crypto adviser Patrick Witt and SEC Commissioner Hester Peirce are actually pushing for with The GENIUS Act and Clarity Act.  What Stripe is quietly building with Bridge, Privy, and Tempo, and whether it's becoming the Visa of stablecoin settlement.  Tether's shrinking equity cushion and what a de-pegging event could mean for the broader crypto market.  YC’s surprising move to accept stablecoin investment as Bitcoin prices sit at half their peak.  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.  Learn more about your ad choices. Visit megaphone.fm/adchoices