Silicon Valley Rejects DEI Efforts, Prefers to Ignore Basic Decency

Welcome to the latest edition of Startups Weekly, your essential recap of noteworthy developments in the startup world. Each week, we deliver the most important updates right to your inbox every Friday. Here is a comprehensive look at the standout stories that shaped the week.

DEI Controversy in Silicon Valley

Silicon Valley is veering away from diversity, equity, and inclusion (DEI) initiatives, as exemplified by Scale AI's Alexandr Wang. Wang proposes a new acronym, MEI: merit, excellence, and intelligence. This shift, which many think undermines systemic issues and favors a superficial meritocracy, has sparked significant backlash. Prominent voices like Elon Musk have weighed in, and many in the LinkedIn startup community have indicated their disapproval.

Insightful VC Perspectives

Vinod Khosla, co-founder of Sun Microsystems and head of Khosla Ventures, disclosed his top anxiety isn't tied to his investments or busy agenda. It's an eye-opening revelation, especially from someone who has significantly profited from his stake in OpenAI.

Technological Innovations and Concerns

Scientists have developed advanced skin-like material that may conjure images of science fiction. Meanwhile, Telegram's founder Pavel Durov revealed the company operates with no backup servers, a concerning detail for security experts.

Space Ventures

Boeing's Starliner capsule has returned to Earth after delays due to technical issues. Initially scheduled for a June 14 return, the capsule's journey was extended because of persistent complications.

Significant Fundraising Rounds

Volkswagen has committed up to $5 billion to Rivian, beginning with an initial billion-dollar investment aimed at enhancing software development. This partnership seeks to improve both companies’ technological offerings.

Young entrepreneurs are making their mark too. Eighteen-year-olds Christopher Fitzgerald and Nicholas Van Landschoot have landed a half-million-dollar investment, trading typical teenage summer activities for serious venture capital negotiations.

Zepto has secured $665 million in investments to expedite grocery deliveries and electronic gadget purchases. Investors seem excited as if they've discovered a unique and valuable new service.

Former HubSpot exec Christopher O'Donnell is revitalizing the CRM industry with AI-powered solutions, bringing new innovations to what was once a mundane sector.

Daydream aims to transform e-commerce by simplifying searches, securing funding to enhance the digital shopping experience.

Notable Technology News

OpenAI Acquisitions

OpenAI expands its capabilities by acquiring database firm Rockset, adding more versatility to its tech offerings.

Anthropic's New AI Model

Anthropic has introduced Claude 3.5 Sonnet, an enhanced AI model proficient in text and image analysis, although it still struggles with humor.

Fisker's Legal Woes

The ongoing legal drama around Fisker's Chapter 11 bankruptcy is escalating with accusations and conflicts that draw comparisons to television courtroom spectacles.

Kaspersky Ban

The U.S. government has banned Kaspersky antivirus software due to national security concerns and potential misuse by Russia.

Changes at Fearless Fund

Fearless Fund co-founder announces her resignation, planning to focus on family life, amid ongoing legal challenges and noticeable lack of wider industry support.

Stay tuned for more updates next week, and make sure not to miss these groundbreaking stories.