TL;DR

Thinking Machines raises $2B at $10B; Apple eyes $14B Perplexity deal; Meta, Tesla, a16z ramp AI bets.

Highlights

• Thinking Machines Lab, led by ex-OpenAI CTO Mira Murati, raised $2B at a $10B valuation within six months; a16z led the round, with board control weighted to Murati 1.
• Apple is considering a $14B acquisition or partnership with Perplexity AI to strengthen AI search and reduce reliance on Google 2.
• Meta is investing in Scale AI and pursuing acquisitions of Thinking Machines, Perplexity, and Safe Superintelligence, with a focus on securing top AI talent 3.
• Andreessen Horowitz led a $15M Series A in Cluely, an AI-powered “cheating” app, valuing the company at $120M amid regulatory scrutiny 4.
• Tesla is launching a limited robotaxi pilot in Austin under regulatory review, and plans $8B in new U.S. manufacturing and infrastructure investment this year 712.
• Meta and Xbox to launch a $400 Xbox-branded Meta Quest 3S VR headset with Game Pass integration on June 24 8.
• Apple faces a securities-fraud class action over delayed Siri AI upgrades; shares are down ~25% since December 2024 11.
• xAI (Elon Musk) to launch Grok 3.5 next week, aiming for improved reasoning and accuracy using synthetic data 6.
• EDF will acquire EV charging operator Pod Point for £10M, down sharply from its £350M IPO valuation, amid slow EV adoption and new UK driving laws 5.
• Cloudflare CEO warns that AI chatbots are significantly reducing publisher web traffic, impacting content monetization models 14.
• Oscar Health surged 16% on record retail options activity, reflecting renewed risk appetite in health tech equities 13.
• BlackRock increased its Bitcoin holdings as $500M in crypto positions were liquidated; large Ether holders are actively repositioning 15.
• Xeet, an invite-only social platform backed by Ethos Network, drew 50,000 users in eight hours; speculation over a future token launch 10.
• CoinMarketCap restored its site after a wallet-phishing attack, highlighting persistent security risks in crypto infrastructure 9.

Commentary

AI remains the focal point for both venture and strategic capital, with extraordinary valuations and rapid fundraising for top-tier teams. Thinking Machines Lab’s $2B raise at a $10B valuation—despite no product—reflects the premium placed on leadership and technical pedigree, especially when backed by firms like a16z 1. Meta and Apple ’s pursuit of AI assets (notably Perplexity and Scale AI) signals intensifying competition for both technology and talent, with M&A and acqui-hire activity likely to accelerate and drive up early-stage and growth-stage valuations 23.

Investor appetite for controversial or unproven AI applications persists, as seen in the Cluely deal, despite mounting ethical and regulatory scrutiny 4. This underscores a willingness to back high-risk, high-reward startups, but also raises the bar for compliance and risk assessment—especially in sectors vulnerable to regulatory intervention.

Tesla ’s robotaxi pilot and additional $8B capex reinforce ongoing capital flows into autonomy and electrification 712, but the Pod Point acquisition at a fraction of its IPO value is a cautionary signal for infrastructure and hardware plays, particularly where consumer adoption lags or regulation shifts 5. Meanwhile, the Meta -Xbox VR partnership highlights continued interest in immersive platforms, though the focus remains on ecosystem expansion rather than hardware innovation 8.

Retail risk appetite is returning in public markets (Oscar Health , crypto), but volatility and security incidents (CoinMarketCap breach) remain a concern for investors in digital assets and fintech infrastructure 91315. New social and “attention-finance” platforms like Xeet are scaling rapidly, but their long-term monetization and regulatory outlook remain uncertain 10.

VCs should closely track AI M&A, regulatory developments in AI and mobility, and user behavior shifts in digital content and platforms. Deal flow is strong, but due diligence and defensible differentiation are increasingly critical as valuations rise and regulatory risk intensifies.