Techmeme Ride Home – Monday, July 7, 2025: What Did I Miss?

Hosted by Brian McCullough

In this episode of Techmeme Ride Home, Brian McCullough delves into the latest developments shaping the tech landscape. From Meta's ambitious AI recruitment spree to TikTok's strategic app overhaul and the resurgence of unicorn startups, Brian provides a comprehensive update on the key happenings in Silicon Valley and beyond. Below is a detailed summary of the episode's main discussions.

1. Meta’s Aggressive AI Recruitment and Expansion

Brian kicks off the episode by highlighting Meta's intensified efforts to bolster its AI capabilities. Daniel Gross, co-founder of Safe Superintelligence, has transitioned to Meta’s newly established Superintelligence Lab, signaling a significant talent acquisition drive.

Brian McCullough [00:04]: “Daniel Gross officially left Safe Superintelligence, the AI startup he co-founded with Ilya Siskever, to join Meta's new superintelligence lab and work on AI products.”

This move is part of a broader strategy where Meta is attracting top talent from industry leaders to enhance its AI offerings. The recruitment includes notable figures from OpenAI, Google’s DeepMind, and Anthropic, indicating Meta's intent to compete directly with these giants.

Brian McCullough [02:17]: “By my count, that's seven people from OpenAI, two from Google, one from Anthropic and one from Sesame. That's a lot from OpenAI.”

Meta's new Superintelligence Unit is envisioned to focus on multimodal models integrating voice and image capabilities with advanced reasoning, positioning the company to rival OpenAI’s suite of products. The recruitment of experts like Pysun, former developer of Waymo's perception models, underscores Meta’s commitment to integrating AI into augmented reality devices, potentially carving out a unique niche in the market.

Additionally, Meta's memo reveals ongoing developments with its Llama models, emphasizing future research without mentioning open-source initiatives or key figures like Yann LeCun.

Brian McCullough [04:35]: “We're going to start research on our next generation of models to get to the frontier in the next year or so.”

This strategic pivot highlights Meta’s focus on advancing its AI technologies beyond the existing Llama models, signaling a robust investment in AI innovation despite internal challenges and competitive pressures.

2. CoreWeave’s Strategic Acquisition to Boost AI Infrastructure

Next, Brian discusses CoreWeave’s agreement to acquire Core Scientific in a $9 billion all-stock deal, aimed at expanding its AI data center capacity. This acquisition marks a significant shift from Core Scientific’s roots in Bitcoin mining to becoming a pivotal infrastructure provider for AI.

Brian McCullough [04:43]: “Core Weave says it has agreed to acquire Bitcoin miner Core Scientific in a $9 billion all stock deal set to close in Q4 2025 to expand its AI data center capacity.”

Core Scientific, once a top Bitcoin mining company, pivoted to AI after Bitcoin's resurgence, providing CoreWeave with substantial data center infrastructure and energy resources. The deal grants CoreWeave access to approximately 1.3 gigawatts of power, equating to the output of a single nuclear reactor and sufficient to power around 750,000 homes.

Brian emphasizes the vast investment in AI infrastructure:

Brian McCullough [04:58]: “It seems to me the people with money seem to feel that we are nowhere near the end of demand for AI capacity.”

This sentiment is echoed industry-wide, with sectors like US industrial companies rapidly shifting to the data center market to capitalize on the ongoing AI boom. Companies such as Gates Industrial, Generac, and Honeywell are expanding their offerings to support hyperscalers like Amazon, Alphabet, Meta, and Microsoft, further fueling the demand for specialized data center equipment.

Brian McCullough [08:50]: “Spending on data centers has proven resilient, with analysts anticipating that more than $400 billion will be spent on the build out of the infrastructure in the current fiscal year, according to Gartner.”

The robust growth in data center investments underscores the critical role of infrastructure in sustaining the AI industry's expansion.

3. TikTok’s US App Overhaul Amid Sale/Ban Proceedings

Brian then shifts focus to TikTok's impending changes in the US market. The platform plans to launch a new app version, internally dubbed M2, on September 5, ahead of the US government’s planned enforcement deadline on September 17 for divestiture or banning.

Brian McCullough [08:58]: “The Information says that TikTok plans to launch a new app version on September 5, ahead of the US's September 17 divest or ban enforcement deadline.”

This strategic move requires US users to transition to the new app to continue accessing TikTok, amidst ongoing negotiations for the sale of TikTok’s US operations to a consortium of non-Chinese investors, including Oracle. The transition poses significant technical challenges, such as migrating user profiles and ensuring seamless functionality, which could impact user retention.

Brian McCullough [11:36]: “Building a new version of TikTok for US users was something the Trump administration or the investors involved in the deal had explicitly required.”

The potential sale remains contingent on approval from the Chinese government, posing the largest hurdle in the process. The episode highlights the delicate balance TikTok must maintain to address data security concerns while retaining its substantial US user base.

4. Reflection on Google-Motorola’s Failed US Smartphone Production

Brian takes a reflective pause to discuss a historical case study: Google’s 2013 initiative to manufacture Motorola smartphones in the US. This effort, framed as a patriotic venture to challenge China-centric supply chains, ultimately failed due to economic and logistical hurdles.

Brian McCullough [16:20]: “Adding thousands of workers on short notice to speed up production of a device, getting more sales than anticipated would be next to impossible to do in the US in China, the ability to flex that workforce is insane.”

The Moto X, despite its innovative features and local assembly in Texas, failed to achieve competitive sales against established players like Apple. Google’s strategy was undermined by higher labor costs, production complexities, and insufficient demand.

The lesson underscores the challenges of reshoring manufacturing in high-tech industries, highlighting that factors beyond national pride, such as scalability and supply chain efficiency, are critical to success.

5. Resurgence of Unicorns in Silicon Valley’s Ecosystem

Concluding the episode, Brian shares an optimistic outlook on the venture capital scene, noting a resurgence of unicorn startups. Analysis of Crunchbase and PitchBook data indicates that over 36 tech startups have achieved valuations exceeding $1 billion in 2025, with a significant number emerging monthly.

Brian McCullough [16:28]: “An analysis of Crunchbase and PitchBook data reveals that in 2025 so far, more than 36 tech startups hit greater than a $1 billion valuation, thereby becoming unicorns.”

While the majority are AI-centric, there is notable diversity with companies in sectors like satellite technology, blockchain trading platforms, and consumer software gaining substantial valuations. Examples include:

• Teamworks: A sports software company valued at $1.25 billion after a $247 million Series F round.
• Gecko: Specializes in data-gathering robotics, valued at $1.62 billion post a $121 million Series D.
• Kalshi: A prediction markets platform at $2 billion following a $185 million Series C.
• Olipop: A probiotic soda company valued at $2 billion after a $137.9 million Series C.
• The Bot Company: A robotics firm valued at $2 billion with a $150 million early-stage round.

Brian emphasizes that this trend signifies a robust and diversified investment environment, driven not only by AI advancements but also by innovations across various technological domains.

Brian McCullough [18:44]: “Nothing more for you today. Talk to you tomorrow.”

Conclusion

This episode of Techmeme Ride Home provides a thorough overview of pivotal tech developments, from Meta’s strategic AI expansions and CoreWeave’s infrastructural investments to TikTok's critical app transition and the vibrant emergence of new unicorns. Brian McCullough effectively encapsulates the dynamic shifts within the tech ecosystem, offering listeners insightful perspectives on the forces shaping the industry’s future.