Good morning readers. Wendy’s is set to shake up the fast-food scene with a spicy new strategy: surge pricing. This $20 million investment will let prices for Frosties and more shift with demand. But here’s something that’ll help: CEO Kirk Tanner promises perks like better order accuracy and upselling. Ya ok, Kirk. Other giants like McDonald’s are eyeing similar moves, but the drawbacks are clear—customers might not stomach fluctuating prices.

For what it’s worth Kirkie, all my orders are accurate at their current prices. Don’t mess with my Baconater.

Let’s jump into today’s storylines.

In today’s digest:

• How a startup is shaking up the AI industry

• Headline Hustle: Apple shuts down its EV project, Justice Department takes aim at UnitedHealth, Google is paying journalists to test a generative AI platform that writes articles

• VCs are investing in startups that shut down other startups

• Pulse Points: What’s Trending

AI

This man is challenging Silicon Valley’s elite…and winning

Mistral, a 9-month old AI startup, is gunning for big tech’s AI crown. And they’re not being shy about it.

Founded by former Google employee Arthur Mensch, Mistral has quickly risen to prominence, boasting a valuation of over $2 billion. But what sets Mistral apart isn't just its impressive numbers; it's the company's philosophy and approach to AI development that's turning heads.

The mission

Mistral AI is on a mission to prove that you don't need massive investments to succeed in the AI industry. Instead, they're championing a capital-efficient model, emphasizing efficiency in both building and deploying AI systems. Central to their strategy is the promotion of open-source models, which not only reduce costs but also foster collaboration and innovation within the community.

One of Mistral's most significant achievements is the development of Mistral Large, a powerful AI model that rivals the likes of GPT-4 and Gemini Ultra but at a fraction of the cost to train. This innovation has caught the attention of industry giants like Microsoft, who have integrated Mistral's technology into their Azure cloud service…already. This, along with partnerships with Salesforce, Nvidia, and the adoption by Brave Software, highlights the company’s disruptive potential in the industry.

But Mistral's impact goes beyond technological innovation

Arthur Mensch's background and motivation speak volumes about the company's ethos. With a history of efficiency-focused work in AI, Mensch aims to challenge the industry's norms and bureaucratic tendencies, advocating for a more agile and open approach to AI development.

As Mistral and similar startups continue to disrupt the AI landscape, the industry stands at a crossroads. The adoption of open-source principles could democratize access to advanced AI systems, fostering a more diverse and competitive ecosystem. However, policy debates around regulation and control will undoubtedly shape the future trajectory of the AI industry.

In the end, one thing is clear: The rise of Mistral AI signals a new era of possibility and potential in the world of artificial intelligence. And as the industry evolves, it's up to us to navigate the opportunities and challenges that lie ahead.

IN THE KNOW

Headline Hustle

🚗 Apple shuts down its EV project. Apple is winding down its electric car project, signaling the end of its secretive venture to challenge Tesla. The initiative, involving thousands of employees, never aligned with Apple's core focus on electronics and online services. Despite years of speculation and investments, the project faced internal reorganizations and skepticism about its feasibility. Some employees may transition to other projects, like generative AI. While Apple remains tight-lipped about its automotive ambitions, its R&D expenditure surged, reflecting ongoing innovation efforts.

🔎 Justice Department takes aim at UnitedHealth. The Justice Department is intensifying its scrutiny of UnitedHealth, delving into potential antitrust concerns regarding its vast healthcare empire. Investigators are examining the company's practices, particularly its relationships between its insurance arm and health-services division, including physician groups. UnitedHealth, with its considerable revenue and expansive reach in the healthcare sector, faces increased scrutiny as the Biden administration prioritizes antitrust enforcement. This inquiry marks a renewed focus on competition within the healthcare industry, aiming to ensure fairness and protect consumers.

📰 Google's AI journalism experiment raises eyebrows and funds from newsrooms. Google's latest move in journalism sparks controversy as it offers five-figure sums to small publishers to test a generative AI platform. Publishers would produce AI-assisted articles daily in exchange for analytics and feedback. Google insists the tool aims to assist, not replace, journalists, yet concerns arise about AI-generated content flooding the web. Critics fear it could undermine journalism's integrity and further erode media jobs. Google's initiative reflects a broader trend of AI integration, raising questions about its impact on journalism's future.

BUSINESS

Venture Capital’s new investment strategy? Startups that help other startups shut down

In the startup world, where ideas soar and dreams often crash, a new kind of business is taking flight: the startup for shutting down startups. This niche shines a spotlight on the stark reality of the startup ecosystem, marked by a blend of high hopes and harsh truths.

The startup life ain’t easy

As the startup failure rate hovers around 90%, a niche market has emerged for companies specializing in the delicate art of winding down businesses. These firms provide a range of services, from legal and financial guidance to automated software solutions, catering to the needs of founders facing the end of their entrepreneurial dreams.

Recognizing the importance of these services, industry veterans and investors alike have thrown their support behind startup shutdown companies. The likes of Carta have entered the fray, signaling a growing recognition of the need for efficient and transparent shutdown processes.

Driven by the complexities of the startup ecosystem, these companies primarily target VC-backed tech startups but also cater to a broader market seeking consolidation or asset disposal. Despite the stigma attached to failure, the demand for shutdown services is undeniable, with millions of businesses facing closure annually.

But as the startup landscape continues to evolve, the demand for efficient shutdown processes is expected to soar. These companies not only provide vital support for founders and investors but also contribute to the overall efficiency and transparency of the startup ecosystem, paving the way for smoother transitions and future entrepreneurial endeavors.

Big picture: As more startups encounter scaling challenges or funding gaps, the demand for efficient shutdown processes and supportive services will only continue to grow.

SNIPPETS

Pulse Points

• Layoffs continue to happen across tech as Bumble announced cuts of 350 people while Sony announced layoffs of 900 employees in their PlayStation division

• OpenAI is looking to dismiss a lawsuit by The New York Times Co., accusing it of financing a hack into OpenAI’s products to bolster their legal case.

• Starbucks has agreed to extend the pay increases initially given to nonunion workers in May 2022 to its unionized employees, indicating progress in negotiations between the company and the baristas' union.

• Warner Bros. Discovery has stopped its plans on acquiring Paramount Global, ending months of consideration about merging the two media entities, as reported by sources close to the situation.

• Beyond Meat exceeded financial forecasts for the last quarter due to strong sales of its plant-based meat patties abroad causing its stock to surge 84% after a significant drop last year.

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