Google and Apple face fines, Aleph Alpha pivots in AI, Carta’s startup report, and LinkedIn's evolution
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Hey Founder, here are the latest tech news and insights:
- Google and Apple lose E.U. appeals, facing billions in fines
- Aleph Alpha's strategic shift in Europe's AI race
- Andreessen Horowitz's top 100 AI apps!
- Southern Europe’s fastest-growing companies
- Carta Report: Which startups get acquired
- Podcast: LinkedIn’s evolution
Google and Apple face billions in penalties after losing E.U. appeals
The European Union achieved a significant legal victory on Tuesday, as its highest court ruled against Apple and Google in two major tech regulation cases. The decisions were hailed as a landmark in the EU’s ongoing efforts to clamp down on tech giants, solidifying its role as the world’s leading tech watchdog. In Apple's case, the court upheld a previous ruling ordering Ireland to collect €13 billion in unpaid taxes, while in the Google case, the court supported a €2.4 billion fine imposed on the company for antitrust violations related to its search engine practices.
Despite these victories, the cases have also highlighted the lengthy and complex nature of the EU's appeals process, raising concerns about whether regulators can effectively keep up with the fast-paced tech industry. Both Apple and Google have been engaged in years of legal battles, with the companies arguing that the EU was retroactively changing tax laws and overstepping in regulating tech practices. While Apple is set to pay billions in taxes to Ireland, Google has already made adjustments to its product offerings to comply with the 2017 decision, though some competitors claim these changes are insufficient.
According to The New York Times, Margrethe Vestager, the EU’s antitrust chief, praised the rulings, noting that they marked a pivotal shift in how digital companies are regulated. She emphasized that these cases set a global precedent for scrutinizing the business practices of tech giants. Yet, as the European Union continues to refine its regulatory approach with new laws such as the Digital Markets Act, the slow-moving legal processes remain a point of contention among consumer rights groups and tech competitors alike.
Aleph Alpha's strategic shift in Europe's AI race
Aleph Alpha, a German AI startup, initially gained attention as Europe’s best hope for developing advanced AI outside Silicon Valley. Backed by over $500 million in funding from German industrial giants and high-profile investors, the company was positioned as a key player in the AI race. However, a recent strategic pivot has shifted Aleph Alpha’s focus. According to Fortune, the startup is now concentrating on PhariaAI, an “operating system for generative AI” designed to help corporations and government clients integrate AI tools and chatbots, regardless of the underlying provider. While Aleph Alpha continues to develop large language models (LLMs), these are no longer central to its commercial strategy.
This change is largely due to industry dynamics, such as the growing dominance of well-funded competitors and the high costs required to maintain cutting-edge AI models. Additionally, the European market has its own set of challenges, with businesses often more risk-averse compared to their Silicon Valley counterparts. Despite stepping back from the LLM race, Aleph Alpha is seizing new opportunities by catering to European data privacy and regulatory needs, and offering specialized AI applications. Meanwhile, the broader European AI ecosystem is still thriving, with companies like Mistral AI in France and Cyber Valley in Germany striving to make their mark on the global AI stage.
Andreessen Horowitz’s list of the top 100 AI consumer apps
Andreessen Horowitz (a16z) released its third edition of the Top 100 Gen AI Consumer Apps, highlighting key trends and the rapid evolution and increasing engagement in AI consumer apps:
- Creative Tools Lead
52% of web-based companies focus on content creation/editing. New entrants include Luma (#14), Viggle (#21), and Udio (#33). Suno jumped from #36 to #5.
- Shift in Content Focus
Image generation tools now represent only 41%. Video (Luma, Viggle) and music (Udio) are gaining traction.
- Mobile Trends
Content editing for image/video is 22% of mobile apps. AI-adapted legacy tools include Meitu (#9) and Adobe Express (#35). - Emerging Players
AI-powered search engine Perplexity rose to #3. Claude by Anthropic is now #4. Luzia debuted at #25 (mobile).
Bytedance’s Push
New web entries include Gauth (#44) and Coze (#45). On mobile, Hypic (#19) and Cici (#34) are notable. - New Category
Aesthetics and dating apps (LooksMax, RIZZ) are gaining popularity. - Discord’s Role
Discord is a launchpad for AI apps, with Midjourney retaining the #1 spot for invite traffic.
Southern Europe’s fastest-growing companies
Fast-growing companies in Southern Europe are overcoming economic challenges, including double-digit inflation and rising interest rates. The latest Sifted Leaderboard highlights organisations that have seen significant sales growth between 2021 and 2023, including several companies that are relatively unknown but highly successful. Unlike the speculative tech ventures of the past, these companies are solving everyday problems, from securing pet health coverage to delivering vital medications.
Spanish and Italian firms dominate the list, with a focus on sustainable revenue rather than splashy headlines.
Techstars spring 2025 applications open
Apply until Jan 10
Techstars has officially opened applications for its Spring 2025 accelerator term, starting in March 2025. This year, Techstars is expanding its reach, planning to invest in 700-800 early-stage companies.
Visionaries program by Female Foundry
Apply until Oct 14
The Visionaries program by Female Foundry supports female entrepreneurs with personalised mentorship, resources, and networking opportunities to scale their startups. It provides a platform for participants to enhance visibility and attract investment opportunities.
Mayfield's AI Garage Program
The AI Garage by Mayfield supports early-stage AI startups by offering funding, mentorship, and resources to accelerate their growth. Applicants should have an innovative AI solution, a strong team, and a commitment to fully engage with the program.
Сarta report: Which startups get acquired?
Viewed by the most recent funding stage, the most common answer is "Series A startups". Series A had the most acquisitions in every period Carta measured (taking the first half total for every year since 2021).
𝗢𝘁𝗵𝗲𝗿 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝗡𝗼𝘁𝗲𝘀
- Always a strong showing for pre-priced round acquisitions (which are most likely acquihires or feature grabs).
- M&A activity rose from H1 2023 to H1 2024 in most stages - positive sign for the rest of the year?
- The late-stage acquisitions (which get much more attention from the press and from regulators) actually make up a fairly tiny portion of the overall M&A market.
- Anecdotally, it seems that far more companies are open to M&A discussions today than 12 or 18 months prior. Of course there won't be buyers for all interested parties.
- As to who is buying these companies, Сarta bets it's mostly the same three groups: PE shops, other startups, and big tech.
The obvious missing piece in this analysis is the acquisition quality - what was the actual final price and for how many participants did this generate real wealth?
Originally published on Peter Walker’s LinkedIn
The success of your messaging hinges on one main factor
→ nailing the right specificity of the use case
A quick definition...
Use Case: a customer activity, workflow, or process supported by your product
Take a company like Slack.
They — like most large companies—are going after a lot of different customer segments.
For their homepage, they're seeking to choose a broad enough use case to encompass all the different reasons people might use them.
While anchoring at the broad level of "communicating" speaks to a very large market size...
...it is ultimately too vague to be compelling to pretty much anyone.
On the flip side, Slack could ratchet down the use case to an extremely specific level.
They could target product designers particularly, and highlight how Slack could support running design reviews for mobile wireframes.
If you're a design leader and you read that message, it will be MUCH MORE compelling than a broad message about "communicating.
However... that market size is exponentially smaller than the market size for "communicating."
Therein lies the difficulty — what is the right level of specificity that will resonate... but won't be so small that you won't meet your business goals?
Marketing leaders need to be brutally honest with the other stakeholders weighing in a homepage. It is almost ALWAYS worse to go too broad.Originally published on Anthony Pierri's LinkedIn.
Michael Houck's Weekly Highlights
Michael Houck shares his favourite finds of the week, spotlighting a new opportunity, an insightful framework, and a cutting-edge tool. He also explores a key industry trend and reflects on an inspiring quote to wrap up the week’s insights.
Opportunity → Ag Tech
This week, we're spotlighting Ag Tech, an industry with abundant opportunities for disruption and growth, including a newsletter in the space already generating $18M ARR.
Framework → Marc Andreessen’s Guide to Productivity
Instead of just getting more done, Marc Andreessen emphasises focusing on the right tasks and strategic growth opportunities, using methods like "strategic incompetence" and "structured procrastination" to achieve major goals.
Tool → WebAI
WebAI lets you build and deploy AI models using your existing infrastructure, offering tailored solutions, local deployment, and full control over privacy.
Trend → Startup Shutdowns
Elad Gil suggests that startup shutdowns are set to accelerate, reflecting the ongoing impact of the ZIRP boom where excessive capital and high risk appetite led to overestimated ventures and risky assumptions
Quote → “Making It” is a Mirage
Staying paranoid as a founder keeps you vigilant and competitive, as complacency can lead to disadvantage when hungrier competitors emerge and inertia sets in.
How LinkedIn Evolved from Essential to Engaging
LinkedIn's CPO, Tomer Cohen, shares insights on product leadership, AI strategies, and the evolution of LinkedIn's feed on Lenny Rachitsky’s podcast.
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