Max Space reinvents expandable habitats with a 17th-century twist, launching in 2026

Image Credits: Max Space

Working and even living in space has shifted from far-off fantasy to seemingly inevitable reality, but the question remains: What exactly will the next generation of space habitation look like? For Max Space, the answer is clear and has been for decades — centuries, even. A new generation of expandable habitats could offer both safety and enough room to stretch your legs, and the first one is going up in 2026.

The startup is led by Aaron Kemmer, formerly of Made in Space, and Maxim de Jong, an engineer who has studiously avoided the limelight despite being the co-creator of expandable habitats like the one currently attached to the International Space Station.

They believe that the breakout moment for this type of in-space structure is due to arrive any year now. By positioning themselves as a successor to — and fundamental improvement on — the decades-old designs being pursued by others, they can capture what may eventually be a multi-billion-dollar market.

Max Space’s expandable habitats promise to be larger, stronger, and more versatile than anything like them ever launched, not to mention cheaper and lighter by far than a solid, machined structure. And despite their balloon-like looks, they are, like their predecessors, quite resilient to the many and various perils of space.

Image Credits: Max Space

But can a startup really take on major aerospace companies with decades of flight heritage and experience? De Jong doesn’t seem to be worried about that part.

“A mantra of mine is never try anything you know you can do ahead of time,” he told me.

“Which comes back to bite me constantly,” he added.

TransHab legacy

1997 NASA concept art of a TransHab expandable in space.
Image Credits: NASA

Expandable habitats go back a long ways, but their first real use was in the TransHab project at NASA in the 1990s, where the fundamental approach was developed.

Contrary to their appearance, expandables aren’t just big balloons. The visible outer layer is, like with many spacecraft, just a thin one to reflect light and dissipate heat. The structure and strength lie inside, and since TransHab, the established convention has been the “basket weave” technique.

In this method, straps of kevlar and other high-strength materials are lined up in alternating directions and manually stitched together, and upon expansion form a surface like a woven basket, with the internal pressure distributed evenly across all the thousands of intersections.

Or at least, that’s the theory.

A Sierra Nevada LIFE expandable habitat before and after expansion.
Image Credits: Sierra Nevada Corporation

De Jong, through his company Thin Red Line Aerospace, worked successfully with Bigelow Aerospace to develop and launch this basket-weave structure, but he had his doubts from the start about the predictability of so many stitches, overlaps, and interactions. A tiny irregularity could lead to a cascading failure even well below safety thresholds.

“I looked at all these straps, and as a field guy I was thinking, this is a cluster. As soon as you’re over or under pressure, you don’t know what percentage of the load is going to be transferred in one direction or another,” he said. “I never found a solution for it.”

He was quick to add that the people working on basket-weave designs today (primarily at Sierra Nevada and Lockheed Martin) are extremely competent and have clearly advanced the tech far beyond what it was in the early 2000s, when Bigelow’s pioneering expandable habitats were built and launched. (Genesis I and II are still in orbit today after 17 years, and the BEAM habitat has been attached to the ISS since 2016.)

But mitigation isn’t a solution. Although basket-weave, with its flight heritage and extensive testing, has remained unchallenged as the method of choice for expandables, the presence of a suboptimal design somewhere in the world haunted De Jong, in the way such things always haunt engineers. Surely there was a way to do this that was strong, simple, and safe.

Mylar and Bernoulli

Maxim de Jong at work in Thin Red Line’s space.

The solution came, as these things so often do, quite serendipitously, about 20 years ago. It was a dark time for De Jong: At work, having rebuffed acquisition attempts by Bigelow, his company was struggling. At home, he and his wife “were living off credit cards — we’d sold our car.” More importantly, his son was sick and in the hospital.

“I was getting really tired of the ‘get well’ balloons, because my son was not getting better,” he told me.

As he balefully contemplated the helium-filled Mylar, something about it struck him: “Every volume that you can put something in has load in two directions. A kid’s Mylar balloon, though … there are two discs and all these wrinkles — all the stress is on one axis. This is a mathematical anomaly!”

The shape taken by the balloon essentially redirects the forces acting on it so that pressure really only pulls in one direction: away from where the two halves connect. Could this principle be applicable at a larger scale? De Jong rushed to the literature to look up the phenomenon, only to find this structure had indeed been documented — 330 years ago, by the French mathematician James Bernoulli.

A figure from Bernoulli’s 1694 “Curvatura Laminae Elasticae” showing the isotensoid in principle (De Jong tells me).
Image Credits: Bernoulli

This was both gratifying and perhaps a little humiliating, even if Bernoulli had not intended this interesting anomaly for orbital habitation.

“Humility will get you so far. Physicists and mathematicians knew all this, from the 17th century. I mean, Bernoulli didn’t have access to this computer — just ink on parchment!” he told me. “I’m reasonably bright, but nobody works in fabrics; in the land of the blind, the one-eyed man is king. You have to be honest; you have to look at what other people are doing, and you have to dig, dig, dig.”

By forming Bernoulli’s shape (called an isotensoid) out of cords, or “tendons,” every problem with expandables more or less solves itself, De Jong explains.

“It’s structurally determinant. That means if I just take a cord of a certain length, that will define all the geometry: the diameter, the height, the shape — and once you have those, the pressure is the PSI at the equator, divided by the number of cords. And one cord doesn’t affect the others; you know exactly how strong one cord needs to be; everything is predictable,” he said.

The inflated prototype suspended and with a Thin Red Line employee inside.
Image Credits: Max Space

“It’s stupidly simple to make.”

All the important forces are simply tension on these cords (96 of them in the prototypes, each rated to 17,000 pounds), pulling on anchors at either end of the shape. And as you might guess from suspension bridges and other high-tension structures, we know how to make this type of connection very, very strong. Gaps for docking rings, windows, and other features are simple to add.

The way the tendons deform can also be adjusted to different shapes, like cylinders or even the uneven interiors of a moon cave. (De Jong was very excited about that news — an inflatable is a highly suitable solution for a lunar interior habitat.)

With the pressurized structure so reliable, it can be skinned with flight-tested materials already used to insulate, block radiation and micrometeoroids, and so on; since they aren’t load bearing, that part of the design is similarly simple. Yet the whole thing compresses to a pancake only a few inches thin, which can be folded up or wrapped around another payload like a blanket.

The 20-cubic-meter habitat deflated to a 2-cubic-meter pancake, or “planar configuration.”
Image Credits: Max Space

“The biggest inflatables anyone has made, and we did with a team of five people in six months,” De Jong said — though he added that “the challenges of its correct implementation are surprisingly complex” and credited that team’s expertise.

What De Jong had done is discover, or perhaps rediscover, a method for making an enclosure in space that had comparable structural strength to machined metal, but using only a tiny fraction of the mass and volume. And he lost no time getting to work on it. But who would fly it?

Enter Max Space

Thin Red Line has seen plenty of its creations go to orbit. But this new expandable faced a long, uphill battle. For spaceflight, established methods and technologies are strongly favored, leading to a catch-22: You need to go to space to get flight heritage, and you need flight heritage to go to space.

Falling launch costs and game investors have helped break this loop in recent years, but it’s still no simple thing to get manifested on a launch vehicle.

As De Jong worked on the isotensoid for more than a decade, he worried that he would never see it fly. Though he’d been fielding frequent acquisition offers — “flattering, but I didn’t want to sell my soul to the dark side” — he wanted to put his idea in orbit.

In came Aaron Kemmer, whose company Made In Space had been putting payloads in the International Space Station for years. Having just sold, he was thinking about the next big thing — literally.

“I quickly realized that if we were ever going to bring real commercialization (large factories, housing, labs, etc.) to space, we needed a lot more volume. Expandables are the only comprehensive solution that allows this to be possible,” he explained. “And no one in the world knows space expandables better than Maxim.”

Max Space with their prototype, at MARS 2024.
Image Credits: Max Space

“NASA, defense, tourism, space manufacturing companies, companies wanting to do pharmaceuticals in space, even entertainment companies — basically for all of these, to do anything in space is very expensive,” Kemmer said. Much of that expense comes from launch, but that cost is constantly dropping as supply multiplies, while accessible volume in space has increased only marginally for decades as demand has risen.

Hence Max Space, a startup built specifically to commercialize the new approach — the name is both a reference to having more space in space, and a tribute to (Maxim) De Jong, whom Kemmer thought deserved a bit more recognition after working for decades in relative anonymity (“which suits me just fine,” he noted).

Their first mission will launch in 2026 aboard a SpaceX rideshare vehicle and will act as a proof of concept so they can get flight heritage, which is one advantage extant expandables have over isotensoids.

“We’ll go to LEO, inflate the largest inflatable to ever go to space, then let it stay up there for a while and see what happens,” Kemmer said. It will have some small customer payloads, but those are secondary. Once they prove out the concept with this small one — 2 cubic meters that expand to 20, which you might call bedroom-sized — the real thing will be much bigger, as already demonstrated on the surface.

“Our first expandable module will be similar in size to current space station modules, ranging in the tens to hundreds of cubic meters. Eventually, we aim for thousands of cubic meters. This will not only help us on the way to orbit but also on missions to the moon and Mars,” Kemmer said.

Concept art of a Max Space capsule on the lunar surface.
Image Credits: Max Space

The two described a rich variety of internal components, any of which can be packed in or added later: farming, living, manufacturing, research — if what you need is volume, Max Space is ready to provide. Kemmer said he expects the market to blow up (it’s impossible to avoid the phrase) around the time they demonstrate in space, since by then heavy-lift vehicles and in-space habitation will be far enough along that the industry will begin asking after the next generation of solutions.

When they do, Max Space will be ready with their answer.

EU calls for help with shaping rules for general-purpose AIs

Image Credits: Getty Images

The European Union has kicked off a consultation on rules that will apply to providers of general-purpose AI models (GPAIs) — such as Anthropic, Google, Microsoft and OpenAI — under the bloc’s AI Act, its risk-based framework for regulating applications of artificial intelligence. Lawmakers want the Code of Practice to help ensure “trustworthy” GPAIs by providing developers with guidance on how to comply with their legal obligations.

The EU AI Act was adopted earlier this year and will come into force imminently, on August 1. But it has a phased implementation for compliance deadlines, and Codes of Practice are due to apply after nine months — so April 2025. That gives the bloc time to draw up the guidance.

The Commission is inviting responses to the consultation from GPAI providers who have operations in the EU, as well as from businesses, civil society representatives, rights holders, and academic experts.

“The consultation is an opportunity for all stakeholders to have their say on the topics covered by the first Code of Practice, which will detail out rules for general-purpose AI model providers,” the Commission wrote. “The consultation will also inform related work by the AI Office, in particular on the template for the summary of the content used for the training of the general-purpose AI models and the accompanying guidance.”

The consultation is a questionnaire divided into three sections. One covers transparency and copyright-related provisions for GPAIs; the second is concerned with rules on risk taxonomy, assessment and mitigation for GPAIs with so called systemic risk (defined in the AI Act as models trained above a certain compute threshold); and the third section deals with the reviewing and monitoring of Codes of Practices for GPAIs.

The Commission said an initial draft Code will be developed “based on the submissions and answers to the targeted questions.”

Those responding to the consultation have the chance to influence the shape of the template the AI Office will provide to GPAI providers so they can fulfill a legal requirement to provide a summary of model training content. It will be interesting to watch how detailed that template ends up being.

More information on the consultation can be found here. The deadline for submissions is September 10, 2024, at 6 p.m. CET.

The EU is also calling for an expression of interest to participate in drawing up the Code via virtual meetings divided into four working groups. An iterative drafting process will be used to develop the guidance.

The AI Office is inviting “eligible general-purpose AI model providers, downstream providers and other industry organisations, other stakeholder organisations such as civil society organisations or rightsholders organisations, as well as academia and other independent experts to express their interest to participate in the drawing-up of the Code of Practice.” 

The deadline for submitting an expression of interest to participate in the drafting is August 25, 2024, at 6 p.m. CET.

In addition, GPAI providers will get the chance to attend workshops with the plenary meeting chairs and vice chairs. These workshops, the AI Office said, are intended to “contribute to informing each iterative drafting round, in addition to their Plenary participation.”

“The AI Office will ensure transparency into these discussions, such as by drawing-up meeting minutes and making these available to all Plenary participants,” it noted.

The AI Office itself will appoint meeting chairs and vice chairs. It is taking applications from “interested independent experts” for these key steering roles.

The call and the consultation on the Code follow concerns that civil society organizations might be excluded from the drafting process. Earlier this month, Euractiv reported that the Commission was intending to rely on consultancy firms to draft the Code, leading to concerns of a skewed process that could favor AI giants.

The Commission sounds keen to dispel any such concerns. “All interested parties are encouraged to participate,” it wrote on Tuesday. “The AI Office invites submissions from a broad range of stakeholders, including academia, independent experts, industry representatives such as general-purpose AI model providers or downstream providers integrating the model into their AI systems, civil society organisations, rightsholders, and public authorities.”

EU’s AI Act gets published in bloc’s Official Journal, starting clock on legal deadlines

SEC charges BitClout founder Nader Al-Naji with fraud; says proceeds paid for L.A. mansion, gifts

short stack of gold coins, with one standing on edge

Image Credits: Just_Super / Getty Images

The founder of once-hyped crypto startup BitClout is facing trouble. On Tuesday, the SEC charged BitClout founder Nader Al-Naji with fraud and unregistered offering of securities, claiming he used a pseudonymous identity to avoid regulatory scrutiny while he raised over $257 million in cryptocurrency. 

BitClout, a decentralized social media platform, raised from a who’s-who of firms, like a16z, Sequoia, Chamath Palihapitiya’s Social Capital, Coinbase Ventures and Winklevoss Capital. Many of these big name investors were in at the company’s roughly $7 million seed round, with Sequoia investing $1 million and a16z investing $3 million, according to sources close to the seed round at the time. 

The SEC complaint alleges that Al-Naji, known by his online pseudonym “DiamondHands,” told investors that proceeds from the platform’s token, BTCLT, would not be used to pay himself or employees. But the SEC alleges that he spent over $7 million on personal expenses, like a Beverly Hills mansion and gifts for his family. Al-Naji did not respond to a request for comment. A source close to Al-Naji said the mansion was used for business purposes, with several BitClout employees living there and throwing company-sponsored events at the home.

The complaint is the latest for a company that has been no stranger to controversy from the start. In 2021 when it was launched, BitClout was intended to be a social crypto-exchange where users bought and sold tokens based on people’s reputations. It made waves and earned criticism by scraping 15,000 profiles from the company then known as Twitter and attaching crypto tokens to celebrities. It essentially created a stock market for famous people, with the price of the tokens rising and falling based on how popular the person was. 

The public – and legal — backlash was swift. Brandon Curtis, cofounder of crypto company Rio Network, hit Al-Naji with a cease-and-desist letter, saying BitClout used his likeness without consent. Lee Hsien Loong, the former Prime Minister of Singapore, even made a public plea asking for his BitClout profile to be removed. “It is misleading and done without my permission,” he wrote on Facebook.  

At the time, many wondered why such esteemed firms had backed such a polarizing concept. Sources close to the company explained that, in crypto circles, Al-Naji had earned goodwill after his previous company, Basis. In 2018, the Princeton grad had raised a whopping $140 million to create a stablecoin. But shortly after Al-Naji realized the regulatory environment was too inhospitable to crypto and he decided to return the money, these sources said. Investors got back about 93 cents on the dollar, according to a person close to Al-Naji. 

So, in early 2021, when Al-Naji approached investors with a new idea, they were inclined to give him a second chance. According to sources close to the company, Al-Naji raised his seed round on the broad pitch of a decentralized social media platform, with no emphasis on the social stock market. But then, in April, Al-Naji intended to quietly test the stock market feature, locking it behind a password-protected webpage. The password promptly leaked and the feature went viral, suddenly becoming a huge focal point for Al-Naji. This upset several investors, according to multiple sources. The company eventually steered back to its original pitch, focusing instead on its DeSo Blockchain, a blockchain “built specifically for decentralizing social networks,” according to the BitClout website. 

Still, immediately after the scraping brouhaha, plenty of tech bigwigs publicly defended BitClout. Investors like a16z’s Andrew Chen, Michael Arrington and angel investor Shaan Puri poured thousands into buying tokens on the platform. Chen posted on BitClout about a month after its launch, writing about how the app has a “really interesting approach” by incentivizing users with financial rewards. And, in a post by Sequoia Capital’s Shaun Maguire, the investor praised Al-Naji’s “transformative vision” and called BitClout “instantly electrifying.” 

The polarization among those angry at being “traded” on BitClout without their permission and those defending the startup was made even more complicated by the fact that there wasn’t a CEO to speak to on behalf of the company. Al-Naji’s hidden identity is one of the key tenants of the SEC’s complaint, which claims that he made BitClout appear like there was “no company behind it … just coins and code,” when he allegedly was, the commission claims, pocketing millions in profit. 

“Al-Naji attempted to evade the federal securities laws and defraud the investing public, mistakenly believing that ‘being ‘fake” decentralized generally confuses regulators and deters them from going after you,’” said Gurbir S. Grewal, director of the SEC’s Division of Enforcement, in a statement released by the SEC. “He is obviously wrong.” 

Sequoia and a16z declined to comment. 

While Al-Naji has yet to speak on the allegations, he previously expressed confidence in his company’s legal footing. At an event in late 2021, he reflected on his previous crypto company and how he spent $10 million on lawyers. The lawyers, he said, taught him all about securities and the law around crypto currencies – lessons he took with him to BitClout. “I learned a lot,” he said. “And I think we did it right this time.”

OpenAI tempers expectations with less bombastic, GPT-5-less DevDay this fall

SAN FRANCISCO, CALIFORNIA - NOVEMBER 06: OpenAI CEO Sam Altman smiles during the OpenAI DevDay event on November 06, 2023 in San Francisco, California. Altman delivered the keynote address at the first-ever Open AI DevDay conference.(Photo by Justin Sullivan/Getty Images)

Image Credits: Justin Sullivan / Getty Images

Last year, OpenAI held a splashy press event in San Francisco during which the company announced a bevy of new products and tools, including the ill-fated App Store-like GPT Store.

This year will be a quieter affair, however. On Monday, OpenAI said it’s changing the format of its DevDay conference from a tentpole event into a series of on-the-road developer engagement sessions. The company also confirmed that it won’t release its next major flagship model during DevDay, instead focusing on updates to its APIs and developer services.

“We’re not planning to announce our next model at DevDay,” an OpenAI spokesperson told TechCrunch. “We’ll be focused more on educating developers about what’s available and showcasing dev community stories.”

OpenAI’s DevDay events this year will take place in San Francisco on October 1, London on October 30, and Singapore on November 21. All will feature workshops, breakout sessions, demos with the OpenAI product and engineering staff and developer spotlights. Registration will cost $450 (or $0 through scholarships available for eligible attendees), with applications to close on August 15.

OpenAI has in recent months taken more incremental steps than monumental leaps in generative AI, opting to hone and fine-tune its tools as it trains the successor to its current leading models GPT-4o and GPT-4o mini. The company has refined approaches to improving the overall performance of its models and preventing those models from going off the rails as often as they previously did, but OpenAI appears to have lost its technical lead in the generative AI race — at least according to some benchmarks.

One of the reasons could be the increasing challenge of finding high-quality training data.

OpenAI’s models, like most generative AI models, are trained on massive collections of web data — web data that many creators are choosing to gate over fears that their data will be plagiarized or that they won’t receive credit or pay. More than 35% of the world’s top 1,000 websites now block OpenAI’s web crawler, according to data from Originality.AI. And around 25% of data from “high-quality” sources has been restricted from the major datasets used to train AI models, a study by MIT’s Data Provenance Initiative found.

Should the current access-blocking trend continue, the research group Epoch AI predicts that developers will run out of data to train generative AI models between 2026 and 2032. That — and fear of copyright lawsuits — has forced OpenAI to enter costly licensing agreements with publishers and various data brokers.

OpenAI is said to have developed a reasoning technique that could improve its models’ responses on certain questions, particularly math questions, and the company’s CTO Mira Murati has promised a future model with “Ph.D.-level” intelligence. (OpenAI revealed in a blog post in May that it had begun training its next “frontier” model.) That’s pledging a lot — and there’s high pressure to deliver. OpenAI’s reportedly hemorrhaging billions of dollars training its models and hiring top-paid research staff.

OpenAI still faces many controversies, such as using copyrighted data for training, restrictive employee NDAs, and effectively pushing out safety researchers. The slower product cycle might have the beneficial side effect of countering the narrative that OpenAI has deprioritized work on AI safety in the pursuit of more capable, powerful generative AI technologies.

Perceptive Space emerges from stealth with plans to improve space weather predictions

Image Credits: NASA (opens in a new window)

Rocket launch providers, satellite operators, and even aviation companies rely on accurate predictions about “space weather,” like solar flares and geomagnetic storms, to inform their operations. But this vital information is still supplied mainly by governments using inaccurate, older modeling techniques. 

Perceptive Space, a Canadian startup that emerged from stealth on Tuesday, is looking to change that. The company is betting that gains in machine learning and artificial intelligence can improve the accuracy of space weather forecasting while also providing near-real time updates. 

The company was founded by Padmashri Suresh, an engineer who cut her teeth on sounding rocket and cubesat missions at Utah State University before embarking on a NASA-sponsored PhD on space weather and machine learning. There, she saw firsthand how inaccurate information on space weather can affect launch, satellite operations, and instrument performance. After leaving the university, she moved into the tech industry, though she says she was waiting for the right time to build a space weather company. 

“Fast forward to 2022, SpaceX lost close to, I think, 38 or 40 satellites, where space weather was a driver,” she said. “I thought perhaps this was that critical mass that spurred me into action to build this company.”

Space weather was back in the news last year, when a far stronger than predicted solar maximum had catastrophic consequences for some satellite operators. 

NASA and NOAA collect space weather data using satellites data and radar and magnetometers on the ground, generating its predictions using bulky, fundamental physics-based models, some of which must be run on supercomputers. But even given this legacy competition, Suresh admits that “it’s a hard problem” to solve. 

“You’re looking at physics at so many different scales,” she said. “You first need to understand the sun. You then need to understand this environment from the Sun to the Earth. There are so many drivers that are really impacting the overall space weather that we experience.” 

But she says that we can extract more signals from data using AI, thanks to increasing access to high performance computing, and advances in prediction algorithms. There’s also simply more data, due to a greater number of satellites in low Earth orbit. 

Investors including Panache Ventures, Metaplanet, 7Percent Ventures, Mythos Ventures and AIN Ventures are contributing $2.8 million to the efforts. Suresh said the capital would be used to accelerate product development from a bench-scale product to a fully fledged service for any launch provider or satellite operator in any orbit by next year. Most of the funding will go toward expanding the team from today’s 5 employees to 10 over the next year. 

Perceptive already has a pilot program and a few early signups, customers that are providing early feedback, and the company aims to onboard more people to that program. Once the commercial product is live, customers will be able to sign up for a subscription that provides short- and long-term forecasting at different pricing tiers, based on the number of assets, the orbit, and other factors. 

Thinking even longer-term, Suresh said that accurate space weather data will be essential for scaling the number of satellites in low Earth orbit or having a sustained human presence in space. She pointed out that the International Space Station mission controllers use space weather as an input to determine when it is safe for astronauts to perform spacewalks or when it is safe for companies like SpaceX to launch them to and from Earth. Even aviation companies use space weather to understand how much radiation exposure pilots are receiving. 

“There’s a human factor,” she said.

Boost your startup with ScaleUp Program at Disrupt 2024

TechCrunch Disrupt 2024 ScaleUp Startup Program

Are you a Series A to B startup looking to make a significant impact in the tech world? The ScaleUp Startups Exhibitor Program at TechCrunch Disrupt 2024 is your gateway to success. This program is designed to catapult your startup into the spotlight, connecting you with industry leaders, investors, and potential partners.

Benefits of joining the ScaleUp Startups Exhibitor Program

Expand your reach. Showcase your innovative solutions on the dynamic Disrupt Expo Floor, where 10,000 tech leaders, investors, and media representatives converge. This is your opportunity to highlight your startup’s unique offerings and create connections that could propel your business forward.

Strengthen your impact. Utilize four full conference passes, allowing your team to immerse themselves fully in the Disrupt experience. Attend groundbreaking sessions, network with key industry players, and present your startup to a diverse audience, fostering crucial relationships along the way.

Broaden your exposure. Receive significant exposure on the Disrupt website, exhibitor lists, and the event app. With access to the exclusive Disrupt press list and comprehensive marketing support, your startup will attract the attention of investors and partners, distinguishing you from the competition.

Budget-friendly and high value. Priced at only $3,500, the ScaleUp Exhibitor Package delivers unparalleled value for startups seeking to increase their visibility at Disrupt. This comprehensive package includes outstanding visibility, networking opportunities, and marketing support. Additionally, if your application isn’t accepted, you’ll receive a full refund, making it a risk-free investment.

Elevate your startup now before spots are filled

Don’t miss this amazing chance to boost your startup at TechCrunch Disrupt 2024. Apply for the ScaleUp Startups Exhibitor Program before space runs out, and elevate your startup to new levels!

Prediction marketplace Polymarket partners with Perplexity to show news summaries

Perplexity AI logo is seen on a smartphone and on a PC screen.

Image Credits: Pavlo Gonchar/SOPA Images/LightRocket / Getty Images

Prediction marketplace Polymarket, which lets users bet on real-world events, is partnering with AI-powered search engine Perplexity to display news summaries of events.

When users click on an event on Polymarket, they will now see a summary of news related to the event based on search results from Perplexity. There’s also a search box that you can use to ask more questions.

Polymarket is also creating a column using Perplexity’s Pages feature (it lets users create sharable pages from search results) that will be displayed on Perplexity’s Discover page. Perplexity said it will explore more third-party partnerships to feature content on its Discover section.

Perplexity will also use some data from Polymarket, such as election trends, to show visuals in the answers. These visuals will be generated using another AI platform, Tako.

“Polymarket has become a go-to destination for people looking to access high signal trusted information on an increasingly noisy web. We see Perplexity as a company engaged in a similar mission, and so investing in deepening our partnership makes perfect sense,” Shayne Coplan, founder and CEO of Polymarket, told TechCrunch over email.

This tie-up follows a similar partnership for Polymarket that saw Substack letting writers embed prediction data from the prediction marketplace in their posts. Polymarket also recently launched its own Substack newsletter, called Oracle.

For Perplexity, Polymarket will be an API customer, and the AI search engine will generate revenue from API calls made by users looking at events and asking questions on the prediction marketplace.

Dmitry Shevelenko, chief business officer at Perplexity, told TechCrunch that while the company is primarily targeting consumers as well as knowledge workers in enterprise settings, increasingly more developers are using the Perplexity API.

“The API business is not a priority for us as we are a consumer-focused company. But still, API usage is growing, with more than 25,000 developers using our API. We have a unique offering that pulls in answers via different internet sources,” Shevelenko said.

“The way we think about API right now is that it’s a means to grow the brand, but not the end.”

He noted that apart from enterprises, publishers are using Perplexity’s API to let users search articles on their platforms. Other use cases include banks looking to run Know Your Customer (KYC) processes, marketing tools and financial services looking to get up-to-date information.

News outlets have criticized Perplexity for plagiarizing their work and scraping the web by ignoring “robots.txt” instructions on websites. The company has since promised to display citations prominently, and has also partnered with media outlets through an ad revenue-sharing program.

Shevelenko didn’t share specifics of how many people click on the sources displayed alongside search results on Perplexity, but he said the number is in “double-digit percentage.”

Perplexity, backed by NEA, IVP, Sequoia and Jeff Bezos, last raised $63 million at a valuation of $1 billion in March. A month later, TechCrunch reported that the startup was looking to raise $250 million at a valuation between $2.5 billion and $3 billion.

Palmer Luckey

Anduril reaches milestone with major defense hardware contract

Palmer Luckey

Image Credits: David Paul Morris/Bloomberg / Getty Images

Last week, Anduril and Palantir delivered the first Tactical Intelligence Targeting Access Node (TITAN) — picture a tactical military truck designed to sweep up massive amounts of data from sensors in space, as well as across terrains and high altitudes — reaching the first major milestone in its $178 million contract with the U.S. Army. It was a big win for Palantir, which then brought on Anduril and Northrop Grumman, among other subcontractors, to help with some of the hardware elements. 

Palantir won the hardware contract back in March after an extensive prototype design process against RTX, formally Raytheon. For context, Raytheon, one of the major defense primes, has a market cap of about $155 billion, dwarfing Palantir’s $66 billion as of writing and Anduril’s recent $14 billion valuation. 

In March, Tom Keane, senior vice president of engineering at Anduril, promised Defense News that the Anduril-Palantir team would deliver the TITAN prototype in mere months. About four months later, the companies delivered. 

Next up, soldiers will put the TITAN through an extensive testing process.    

For Anduril, getting pulled on to the contract by Palantir is an example of a rising tide lifting all boats. The TITAN victory shows that defense tech startups, which often start in software, have a path to winning major contracts with hardware components. 

“We might be the first software prime, but we don’t intend to be the only software prime,” Bryant Choung, senior vice president for defense at Palantir, told Breaking Defense back in March. 

Anduril’s ambitions go beyond subcontracting; the company has been open about wanting to be the lead contractor on massive contracts. The startup is a final contender for the collaborative combat aircraft program, and told Breaking Defense last week that it would compete to be the prime contractor on an upcoming program designing a supersonic interceptor to take down cruise missiles.

TikTok comes for messaging apps with the addition of group chats

A laptop keyboard and TikTok logo displayed on a phone screen are seen in this multiple exposure illustration.

Image Credits: Jakub Porzycki/NurPhoto / Getty Images

TikTok looks to be taking on popular messaging services like Meta’s WhatsApp and Apple’s Messages, as the company announced on Monday that it’s adding group chats to its platform. You can now create group chats with up to 32 people to chat and share content together.

While people often share TikTok videos with each other in group chats on messaging apps, TikTok is now letting users do so within its own platform. Users can now watch, comment and react together all on TikTok.

The latest addition indicates that TikTok is interested in making its platform more social and a place for conversation with friends, not just an entertainment platform where you interact with strangers.

As with individual messages, group chats are only available to users above the age of 15. TikTok says it has added safety measures to protect teens between the ages of 16 and 17.

Everyone, including teens, can only be added to a group chat by a mutual follower. If a teen gets an invite to join a group chat, they can’t join unless the group has at least one mutual friend in it. Plus, when a teen creates a group chat, TikTok will require them to review and approve new joiners.

You can create a group chat by tapping the “Chat” button at the top of your inbox and then selecting “More options.” Then, you can select the friends you want to include in the group and then click “Start group chat.” To join an existing group chat through an invite, you can tap on the invite and then click “Join group.”

TikTok also announced that it’s rolling out custom stickers in DMs. The company sees the feature as a fun chat option that encourages users to create and upload their own custom stickers for everyone to use.

Score, the dating app for people with good to excellent credit, quietly shuts down

Neon Money Club Score app

Image Credits: Neon Money Club

Score, the dating app for people with good to excellent credit, shut down in early August, the company confirmed to TechCrunch.

Score was only supposed to be a pop-up app, as TechCrunch previously reported, and was only supposed to be around for 90 days. This was back in February. But it received so much user interest that parent company Neon Money Club decided to keep it open for six months. In that time it racked up around 18,000 users, made 8,000 matches, and gathered a lot of insights on the current dating scene, the company told TechCrunch. 

“Score was started to make people aware of their credit health and to start a bigger conversation around that,” Luke Bailey, co-founder of Neon Money Club, told TechCrunch. “We accomplished our goal. We let everyone know from the start that this was intended to be temporary.”

When asked about a possible acquisition, Bailey added that “bigger dating companies have their hands full trying to keep dating apps relevant.” 

“What Score showed was that people have a thirst for lifestyle apps that have a bigger goal other than being exclusive or simply connecting people,” he said. “We’re happy to let one of the leaders in this space acquire our teachings and learnings. Call me.” 

Score did get a bunch of data, however, that paints an interesting picture of the current dating scene. (It did not keep any sensitive information from users and had a strict background check in line with its banking compliance background, the company confirmed.) According to its data, millennial users had the highest credit scores of all groups, as well as the highest gap in credit scores between genders: Millennial men had a score 11% higher than women on average. The company also said that Gen Z might be closing that gap, with men having just around 3% higher credit scores than women. Gen X, meanwhile, had the smallest gap between genders on the app at just 0.4%. 

“The most alarming data point we saw was that 11% credit score advantage millennial men had over millennial women,” Bailey said. “It tells an important story of how the most educated generation of women in history was impacted by the exuberant costs of achieving this milestone: college costs, student loans. It tells a story of how this has affected their credit health. Lower disparities among Gen Z show hope that maybe the next generation will find a way to get around this burden.” He hopes that policymakers can look more into this and find ways to help close this economic gender gap, he said. 

The app caused much debate after its initial launch in February, with some praising the idea while others called it classist. Bailey pushed back on the idea of classism at the time; he did it again with the announcement of the app shutting down. He said that anyone who calls the app classist did not read the mission behind it and that the app connected a lot of good people who were looking to prioritize financial health; made people more aware of their credit health; and connected people to educational resources to help them with their credit journeys. 

“The first and most important thing they learned is what we wanted them to learn: their credit score,” Bailey said. 

Neon Money Club launched in 2021 to help teach about financial literacy. Last year it became the first Black-owned tech business to launch a credit card with Amex. Luke says the company will probably not create another dating app, but said he wouldn’t be surprised if the company came up “with another crazy way to shed light on the importance of financial wellness.” 

That said, Neon Money Club does have some new projects coming up, such as building more experiences around its Amex card, its Time investing account, and a new wellness studio.

“We’re currently developing powerful content — in our own signature way — that we think will have a major impact in the financial space and beyond,” Bailey said. “Stay tuned.”