Latest news with #MorningDispatch
Economic Times
14 hours ago
- Business
- Economic Times
Qcomm's worker woes; Capillary's IPO moves
Happy Friday! Quick commerce platforms are facing challenges in hiring and retaining delivery partners. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ Foxconn expands in India ■ Krutrim exits, layoffs■ Groww expands offerings Quick commerce players running out of delivery riders as demand shoots up India's booming quick commerce sector is facing a key operational hurdle: hiring and retaining delivery partners. As demand for rapid deliveries surges, incumbents are scaling up and new players are joining the race. But recruitment has struggled to keep pace with growth. Tell me more: Recruitment platform Vahan, which works with leading gig economy firms, confirms the pressure. Hiring is getting harder as 'manpower availability is not rising in proportion to demand.' Dark store managers echoed the concern. Several said they need more riders, with daily orders nearing 1,500. Quote, unquote: 'Bikers are getting more demanding for all of us. It's becoming tough to hire and retain. These aren't good signs. It's reasonably acute, though not unmanageable yet,' said an executive at a quick commerce firm. Ground reality ET spoke to delivery partners in Bengaluru and New Delhi, most of whom said that falling per-order payouts are making the job unsustainable. A Flipkart Minutes rider said promised referral bonuses aren't being honoured, pushing many to switch platforms for better pay. Harsh weather conditions are adding to the strain on operations. Also Read: Quick commerce fires up record discounts with rivals getting quicker Loyalty tech firm Capillary Tech files draft IPO papers; eyes Rs 430 crore via fresh issue Aneesh Reddy, founder, Capillary Technologies Customer engagement and loyalty tech provider Capillary Technologies India has filed its draft red herring prospectus (DRHP) with Sebi for an initial public offering (IPO), joining a growing list of new-age companies eyeing the public markets. IPO details: Fresh issue: Rs 430 crore. Rs 430 crore. Offer for sale: 18.3 million shares. 18.3 million shares. Promoter Capillary Technologies Pte, backed by Peak XV Partners and Avataar Venture Partners, will offload 14.2 million shares. JM Financial, IIFL Capital, and Nomura are book-running lead managers. Second attempt: The company initially filed its DRHP in December 2021, but the proposal did not receive Sebi's nod. ET had first reported in November that Capillary Technologies was reviving its IPO plans and was aiming to file this year. Objectives: Capillary Technologies will use the proceeds from the fresh issue to: Cover its cloud infrastructure costs. Invest in product and platform R&D. Fund inorganic growth through acquisitions. The funds will be deployed between fiscal years 2026 and 2028. Foxconn plans to make iPhone enclosures in India Apple's largest supplier, Foxconn, is setting up a unit in Oragadam, Tamil Nadu, to manufacture iPhone enclosures, as ET first reported on September 25 last year. The move is part of the Taiwanese contract manufacturer's broader efforts to expand and diversify its operations in India. Foxconn India footprint: iPhone assembly unit at Sriperumbudur, Tamil Nadu. New facility in Devanahalli, near Bengaluru. New AirPods assembly unit in Hyderabad. Progress so far: Construction has commenced at the ESR Industrial Park in Oragadam, close to Foxconn's upcoming display module facility, according to one person aware of the developments. Quote, unquote: "This gives Apple more leverage and also provides Foxconn with ease of integration and boosts value addition," said Neil Shah, vice president, Counterpoint Research. "This improves supply chain effectiveness for Foxconn as well as Apple." Tariff troubles: Apple is keen to move iPhone production to India to avoid potential US tariffs on Chinese-made devices. However, US President Donald Trump has threatened a 25% duty on devices made overseas. Despite this, Foxconn is pressing ahead with its expansion plans for India. Applied Materials says Bengaluru chipmaking centre to rake in $2 billion Suraj Rengarajan, head of semiconductor products group, Applied Materials India American chip equipment manufacturer Applied Materials plans to establish a chip manufacturing centre in Bengaluru for $400 million over four years, Suraj Rengarajan, managing director at Applied Materials India, told ET. The company expects the plant to attract investments up to $2 billion in the future. Other Top Stories By Our Reporters Bhavish Aggarwal, founder, Krutrim Fresh exits at Krutrim: Three senior executives heading engineering and AI product execution at Bhavish Aggarwal's Krutrim have left, as the company laid off over a dozen people from their linguist teams across multiple languages early this week, sources familiar with the matter told us. Groww to apply for corporate bond trading licence: Stockbroker Groww is planning to seek Sebi's approval to offer trading in corporate bonds through its mobile application, according to two people in the know. AI, automation, geopolitics in focus at TCS AGM: Tata Consultancy Services (TCS) will focus on four strategic pillars: establishing a large pool of AI agents to work alongside the human workforce, delivering solutions for a human-plus-AI model, investing in AI data centres, and partnerships, said director Keki Mistry during the company's 30th annual general meeting (AGM). Insurtech firm Renewbuy bags $10 million: Insurance broking startup Renewbuy has secured $10 million (approximately Rs 86 crore) in a funding round from its existing investors, London-based Apis Partners and 360 One (previously IIFL Wealth). Global Picks We Are Reading ■ How much energy does AI use? The people who know aren't saying (Wired) ■ Samsung is desperate to compete on chips. Workers say it comes at a cost. (Rest of World) ■ I tried the future of smart glasses at WWDC. They weren't made by Apple (CNET) Updated On Jun 20, 2025, 07:27 AM IST
Time of India
2 days ago
- Business
- Time of India
Urban Company turns profitable; Ola goes commission-free
Next Urban Company turns profitable; Ola goes commission-free Want this newsletter delivered to your inbox? Also in the letter: Urban Company posts Rs 240 crore profit in FY25, revenue rises 38% Financial details: The company turned profitable in FY25, posting a net profit of Rs 240 crore compared to a loss of Rs 93 crore in FY24. A large part of this turnaround came from a Rs 211-crore deferred tax credit booked during the year. Even before tax, the at-home services platform reported a profit of Rs 28 crore. Tell me more: In a letter to shareholders, cofounders Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan stated that the company plans to accelerate growth by deepening its presence in existing cities, entering new markets, cross-selling services, and expanding offerings, such as InstaHelp. In FY25, Urban Company averaged around 47,800 active service professionals on the platform each month and recorded 6.8 million annual transacting consumers. Also Read: IPO plan: Also Read: Ola launches zero percent commission model across India; drivers to keep entire fare earnings Driving the news: With this move, the Bhavish Aggarwal-led company claims to be the first in the industry to scrap commissions entirely. Drivers can now choose from a range of subscription plans and keep the full fare amount, with no deductions or earning caps, the company said. The model was introduced in phases, starting with Ola Autos, then Ola Bikes, and now extended to Ola Cabs. Rival updates: Other details: Also Read: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Insolvency plea filed against FirstCry subsidiary GlobalBees Details: Ashutosh Garg, Paritosh Garg and Manju Agarwal filed the plea before the New Delhi bench of the NCLT. The tribunal is yet to decide whether it will admit the case and initiate proceedings. According to FirstCry's red herring prospectus, GlobalBees acquired Kuber Industries in December 2021. BrainBees Solutions, the parent entity of FirstCry, holds a 51% stake in GlobalBees, which focuses on acquiring and scaling D2C brands. Tell me more: Also Read: Indian startups that have pared Chinese stakes Exit route: For instance: Sam Altman says Meta offered $100 million bonuses to OpenAI employees Details: Also Read: Background: At-home services company Urban Company became profitable in FY25 and reported strong revenue growth during the year. This and more in today's ETtech Top 5■ GlobalBees faces insolvency■ Startups strengthen domestic control■ Meta eyeing OpenAI talent(L-R) Varun Khaitan, Raghav Chandra, Abhiraj Singh Bhal, cofounders, Urban CompanyIPO-bound Urban Company has reported a 38% increase in its operating revenue, reaching Rs 1,144 crore for the financial year ending March 31, 2025, according to its annual report released on April 28, Urban Company filed its draft red herring prospectus for a Rs 1,900 crore IPO . The issue includes a primary component of Rs 429 crore. This is a scaled-down version of its earlier plan to raise Rs 3,000 platform Ola has launched a zero-commission model across India, enabling driver-partners of autos, bikes, and cabs to retain 100% of their fare ET reported on April 9 , both Ola and Uber have adopted a fee-based model inspired by Namma Yatri and Rapido. Instead of taking a cut per ride, the platforms now charge drivers a fixed daily or weekly fee, offering unlimited access to has faced a revenue decline and a spate of senior-level exits over the past year. Earlier in January, the Central Consumer Protection Authority (CCPA) issued notices to Ola and other ride-hailing firms over price discrepancies between Android and iPhone users ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship Maheshwari and Nitin Agarwal, founders, GlobalBeesThe directors of direct-to-customer (D2C) homecare company Kuber Industries have filed an insolvency petition against GlobalBees Brands, a subsidiary of omnichannel retailer FirstCry, over unpaid dues totalling Rs 65 insolvency filing comes just months after FirstCry announced plans to invest Rs 146 crore in GlobalBees. In April, the roll-up firm's CEO, Nitin Agarwal, resigned , citing personal reasons. ET has been reporting on the stress in the roll-up ecommerce sector. The segment has struggled with overvalued acquisitions and weak financial discipline, leading to stress across firms such as Good Glamm Group , Mensa Brands, Upscalio and Goat Brand Kalra, founder, MakeMyTripMakeMyTrip is raising $2.6 billion to repurchase shares from China's group, aiming to cut the investor's stake from 45% to 20%. This move mirrors a broader trend among new-age Indian companies over the past few Indian startups have reduced or eliminated Chinese ownership amid rising geopolitical tensions and a growing push for domestic control and technological following companies have pared Chinese investors' stakes:OpenAI CEO Sam Altman is fending off pressure from multiple fronts. Days after reports of tensions with its major backer, Microsoft , Altman has accused Meta of aggressively trying to poach OpenAI's top talent as both companies ramp up efforts towards artificial general intelligence (AGI).Mark Zuckerberg's Meta has reportedly offered OpenAI employees signing bonuses of up to $100 million to recruit them, part of a broader recruitment push for its new superintelligence unit. The move signals an intensifying battle for elite AI the Uncapped podcast hosted by his brother, Altman said, 'They (Meta) started making giant offers to a lot of people on our team. You know, like $100 million signing bonuses, more than that (in) compensation per year." He claimed that none of OpenAI's best team members had accepted the Platforms has invested $14.3 billion in Scale AI, a startup now valued at over $29 billion. According to Reuters, Scale cofounder and CEO Alexandr Wang will join Meta's new AGI-focused division. Zuckerberg is said to be personally leading hiring for the team, with plans to bring in about 50 people, including a new head of AI research.
Time of India
4 days ago
- Business
- Time of India
Stage set for micro-dramas; WhatsApp's monetisation bid
Stage set for micro-dramas; WhatsApp's monetisation bid Also in the letter: India's big bet on micro drama: Startups, investors eye a new content race Notable actors: Investor interest: Flick TV raised $2.3 million in seed funding in June. ReelSaga secured $2.1 million in May. Chai Shots is looking to raise $5 million in fresh capital. ZEE signed a strategic equity partnership with content startup, Bullet. Monetisation hurdles: Zooming out: Earlier this year, The Economist noted that the value of China's micro-drama market had jumped 10x between 2021 and 2023. Its current estimated worth of $5.3 billion is projected to reach $14 billion by 2027. Cumulatively, Chinese micro-drama apps have garnered nearly 55 million downloads and $170 million in revenue overseas, according to iiMedia Research, as reported by The Economist. WhatsApp ads will not impact privacy: Will Cathcart Driving the news: No risks to privacy: But how? Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: How the ban on Karnataka's bike taxis affects gig workers, commuters: ETtech explains What happened to the apps? Who's hit? Companies continue to lobby: Also Read: ET Explainer: Behind crackdown on unauthorised use of government databases for user onboarding Scrambling to comply: What's on offer: Also Read: The need: Problem? Other Top Stories By Our Reporters Meesho secures NCLT approval for reverse flip to India: Meta appoints Arun Srinivas as its India head: ShareChat CBO Gaurav Jain steps down amid leadership shakeups: Global Picks We Are Reading Investors are flocking to micro-drama startups as the next big thing in India's content and entertainment industry. This and more in today's ETtech Morning Dispatch.■ K'taka bike taxi ban■ ID verification crackdown■ Meta's new India head Investors are getting hooked on short, binge-worthy micro dramas as the next big wave in India's entertainment space. Unlike user-generated content on Instagram Reels and YouTube Shorts, micro-dramas are professionally produced, with higher production quality and serialised storytelling designed for mobile-first startups such as Flick TV, Eloelo, Kuku FM, Chai Shots, and ReelSaga, larger digital platforms like Amazon, ShareChat, and Zee Entertainment Enterprises (ZEE) are also stepping into the micro-drama market to meet growing capital firms are actively backing local content platforms, hoping to replicate the playbook of their Chinese big challenge now is figuring out how to monetise the format. In a price-sensitive market like India, where the average revenue per user (ARPU) remains low, this is no small platforms are testing a pay-per-episode model with micropayments, while others plan to introduce monthly and quarterly subscription tiers. A few are also exploring hybrid strategies that combine subscriptions with ad-supported have had a breakout moment in China over the past few monetisation efforts will not contravene user privacy, Will Cathcart, head of WhatsApp at Meta, told us in an exclusive interview . Monetisation efforts by the platform have created value for both users and businesses, without compromising the app's core promise of privacy, security, and an ad-free chat experience, he Monday, WhatsApp introduced ads in Status updates and launched subscriptions on Channels. The company clarified that these ads will not appear in private chats or calls.'Nothing has changed about the privacy of people's messages, their calls, their statuses,' Cathcart emphasised, adding that these features remain end-to-end to Cathcart, one of the key challenges is that encryption limits the amount of data available for ad targeting. This, he added, was a deliberate trade-off to preserve user privacy. However, the platform will do its 'best to make the ads relevant', he ads in the Updates tab will reflect how users interact with the space, based on factors such as their country, city, language, and Channel activity, among other things, Cathcart the edited interview here ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship Monday morning, many Bengaluru commuters found themselves in a fix. With the Karnataka government's bike taxi ban taking effect , they were left scrambling for alternative transport. But beyond the inconvenience to riders, the move threatens the livelihoods of thousands of gig workers who relied on the Uber renamed its bike taxi option to 'moto courier' while Rapido called it 'bike parcel'. Ola, meanwhile, removed the feature users speculated that the aggregators were trying to sidestep the regulations, both Uber and Rapido pulled the options from their apps commuters expressed frustration over the ban, especially those who depended on bike taxis for their speed and 50,000 and 60,000 gig workers are likely to be impacted across Karnataka, according to Shaik Salauddin, founder president of the Telangana Gig and Platform Workers separate statements, ride-hailing firms Rapido and Uber stated they are engaging with the state's transport department in search of a resolution. Both expressed hope that the discussions would lead to a positive outcome. Ola has not commented on the Ministry of Electronics and Information Technology (MeitY) has directed several technology-led startups to cease their offline Aadhaar-based know-your-customer (KYC) services . According to two individuals familiar with the situation, these companies have been accessing Aadhar data through unauthorised the government tightens scrutiny of data platforms, industry players are now pushing for clearly regulated avenues to carry out Aadhaar customer onboarding increasingly shifting online, financial services companies and consumer technology firms need to verify users efficiently. This has opened up space for ID verification startups, which help validate documents and cross-check them against official government rely on these services mainly to prevent fraud in sectors such as digital lending, insurance, payments, and merchant onboarding. Verifying identities on the go makes it easier to onboard users and reduce government is now assessing whether these verification services are being offered through legitimate channels and legal means. Industry sources told us that while most large startups follow the rules, several smaller players have allegedly gained unauthorised access to some sensitive government Aatrey, CEO, MeeshoThe Bengaluru bench of the National Company Law Tribunal (NCLT) has approved Meesho's proposal to demerge its Indian entities from its US-based parent, marking a significant milestone in the company's plan to relocate its domicile to Platforms has named Arun Srinivas as its new managing director and head for India, the company announced on who heads ShareChat's monetisation efforts across functions, shared plans to leave amid a string of high-profile exits at the vernacular social media platform.■ AI alone cannot solve the productivity puzzle ( FT ■ OpenAI and Microsoft tensions are reaching a boiling point ( WSJ ■ Would you switch browsers for a chatbot? ( The Verge
Time of India
11-06-2025
- Business
- Time of India
Qcomm cos on govt radar; Tata upskills in Taiwan
Qcomm cos on govt radar; Tata upskills in Taiwan Also in the letter: Govt may increase scrutiny on quick commerce firms following hygiene, food safety issues Taking charge: Second strike: Last year, a raid by the Telangana food safety commissioner also flagged lapses at Blinkit warehouses. In response, the FSSAI urged state authorities to step up inspections of quick commerce facilities. The agency also amended norms, mandating that rapid delivery platforms supply products with at least 30% of their shelf life remaining or a minimum of 45 days before expiry. In addition to concerns about food safety, quick commerce firms have also faced scrutiny over the use of manipulative design tactics, known as dark patterns. Also Read: Rapid expansion: Tata Electronics sends hundreds of staff to Taiwan for semicon training Driving the news: Now hiring: Talent hunt: To build its talent pipeline, Tata Electronics is recruiting top executives from chipmakers such as Intel and GlobalFoundries, while also training less experienced employees. Fresh graduates and professionals with some industry exposure are being sent to Taiwan as part of this programme. Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Flexiloans raises another Rs 375 crore from Fundamentum, Accion and others The details: The round was led by existing investors, including Nandan Nilekani's Fundamentum, US-based impact investor Accion, American asset management firm Nuveen, and Denmark-based asset management company Maj Invest. British International Investment (BII), the UK's development finance institution, joined in as a new investor. Tell me more: Founder's take: Wealthtech startup PowerUp Money raises $7 million: Garuda Aerospace raises $1 million: Other Top Stories By Our Reporters Byju's US assets Epic and Tynker sold for a song: Meesho converts to public entity in run-up to IPO: OpenAI's ChatGPT down; users report issues in loading prompts: Global Picks We Are Reading Happy Wednesday! The government may increase surveillance on quick commerce dark stores because of increasing hygiene concerns. This and more in today's ETtech Morning Dispatch.■ ETtech Done Deals■ Byju's US fire sale■ Meesho converts to public entityThe government is likely to increase oversight of quick commerce companies' dark stores following a spate of complaints about food safety violations at facilities run by leading told us that the Food Safety and Standards Authority of India (FSSAI) will lead the effort, with plans for surprise inspections at dark stores and other storage facilities across the FSSAI, which falls under the health ministry, sets standards for the manufacture, storage, distribution, sale and import of food HSBC Global ReasearchThe move follows recent action by the Maharashtra Food and Drug Administration (FDA), which suspended the licences of Blinkit and Zepto's dark stores in Mumbai and Pune after uncovering multiple hygiene breaches and violations of food safety executives and brand founders told ET that the fast and largely 'unchecked' growth of quick commerce platforms, which pushed both marketplaces and brands to scale at breakneck speed, may be at the root of the Electronics is ramping up preparations for its semiconductor fabrication (fab) and assembly and test (OSAT) facility by sending scores of employees to Taiwan for told us that the electronics arm of the Tata Group has sent 'a couple of hundred' employees to its technology partner Powerchip Semiconductor Manufacturing Corporation (PSMC) for hands-on training in the specialised skills needed to operate the upcoming fab in training is being conducted in a phased and structured manner, as PSMC can accommodate only a limited number of trainees at a Rs 91,000-crore fab in Dholera is expected to generate over 20,000 direct and indirect skilled jobs. Tata Electronics has started hiring in batches of 75, according to a person familiar with the matter."Different batches focus on distinct operations like equipment, yield engineering, process technology and another on quality engineering, which is generally a smaller group that doesn't need as many people,' the person Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship opportunities.(L-R) Manish Lunia, Deepak Jain, Ritesh Jain, founders, FlexiloansNon-banking finance company Flexiloans has raised Rs 375 crore in a mix of primary and secondary capital to drive its expansion raise follows a Rs 290 crore infusion in October 2024 . That round had valued the company at $140 million, ET reported at the time. The current raise includes a significant secondary ended FY24 with revenue of Rs 263 crore and a net profit of Rs 3 crore. The company is yet to file its FY25 financials.'Through this round, we have given exits to the high networth individuals who had invested in the company in 2017. Most of our existing institutional investors have doubled down in the company,' said Deepak Jain, a cofounder of wealthtech startup PowerUp Money has raised $7.1 million in its first major institutional funding round, led by early-stage investors Accel, Blume Ventures, and Kae Capital. This round also included participation from 8i Ventures and in April by Prateek Jindal, a former cofounder at Uni Cards, the startup offers direct mutual fund investments to retail startup Garuda Aerospace, backed by former Indian cricket team captain Mahendra Singh Dhoni, has raised $1 million in a funding round from the Narotam Sekhsaria Family Office (NSFO). The company plans to use the funds to scale up manufacturing capacity from 8,000 drones annually to 12,000-15,000 US assets of troubled edtech company Byju's, coding platform Tynker and kids learning platform Epic, have been sold for a fraction of what the company paid for them. A US bankruptcy court approved both sales during a hearing on May 20, as reported by EdWeek Market board of ecommerce marketplace Meesho has approved its conversion into a public entity in anticipation of a planned initial public offering (IPO), as stated in its filings with the Registrar of Companies (RoC).OpenAI's chatbot ChatGPT experienced an outage , with thousands of users encountering difficulties in loading and accessing results for their prompts. The company acknowledged the outage and stated that both ChatGPT and the image generation AI tool, Sora, have been affected.■ Trump's Tech Bros: Can Tim Cook save Apple from the trade war? ( FT ■ Tesla's Robotaxis are rolling out soon—with one big unanswered question ( Wired ■ Google's AI search features are killing traffic to publishers ( TechCrunch
Time of India
10-06-2025
- Business
- Time of India
Byju's fire sale; Meesho's pre-IPO move
Byju's fire sale; Meesho's pre-IPO move Also in the letter: Byju's sells American assets Epic, Tynker for a song Fire sale: Epic, Byju's second-largest acquisition with a $500-million price tag in 2022, has been sold to China's TAL Education Group for $95 million. CodeHS, a computer science education company, has bought Tynker for $2.2 million in cash. Byju's had acquired it in 2021 in a cash-and-stock deal worth $200 million. Leading to the sale: In June 2024, a group of lenders from the consortium that loaned $1.2 billion to Byju's filed a petition in a US court seeking bankruptcy proceedings against its subsidiaries Epic, Tynker and Osmo, ET had reported. The court approved the sale of Epic and Tynker in an order dated May 20. Lots of litigations: Meesho converts to public entity in run-up to IPO Future proofing: Homecoming: Meesho has also applied to the National Company Law Tribunal (NCLT) to shift its domicile from the US back to India. Last month, the SoftBank-backed etailer got board approval to rename its Indian entity, Fashnear Technologies Pvt Ltd, to Meesho Pvt Ltd. Following the 'reverse flip', Meesho Ltd will become the parent company of the online marketplace. Operational metrics: Meesho recorded 34% year-on-year growth in orders, reaching 1.3 billion in nine months to December 2024. As of December 2024, the platform had 187 million unique annual transacting users, representing a 26% increase from the previous year. Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: Meta's Mark Zuckerberg is hiring for new AI team: Report Driving the news: Zuckerberg plans to personally hire 50 people, including a new head of AI research. The move, the report added, follows internal dissatisfaction with the reception of Meta's Llama 4 model. Meta's proposed $10 billion investment in Scale AI could also see the AI startup's founder, Alexandr Wang, joining Meta's AGI team once the deal is finalised. Tell me more: Meta has delayed the release of its flagship "Behemoth" AI model, reportedly due to concerns about its capabilities, according to The Wall Street Journal. OpenAI, Meta's closest rival in the AGI race, is also actively seeking fresh investment to accelerate its own efforts. Also Read: OpenAI's annualised revenue hits $10 billion, up from $5.5 billion in December 2024 What does this mean? The company is on track to meet its 2025 revenue target of $12.7 billion, as outlined to investors. OpenAI lost nearly $5 billion last year, but its current revenue run rate highlights just how far ahead it is of its competitors. Turf war in the clouds showers on the ground Babyscalers vs hyperscalers: Neocloud firms, often called babyscalers, are boutique operators focused on flexible GPU rentals and specialised infrastructure. Hyperscalers, in contrast, offer vast computing, storage and networking capacity at scale. The underdogs are winning on price. Renting an Nvidia DGX H100 GPU system from a hyperscaler costs around $98 an hour. A babyscaler charges just $34, roughly two-thirds cheaper. Investors' darlings: Everything Apple announced at its annual developer conference New features: At WWDC, Apple launched iOS 26 and integrated Apple Intelligence across its apps and devices. The company also introduced a new display technology, 'liquid glass'. The Phone app now offers smart screening, automatic hold, and optional call answering. Messages is getting a refresh too, with features like custom chat backgrounds. Apple is also introducing generative AI to Xcode, its developer tool, to assist with writing, testing, and debugging code. Support for third-party models, such as ChatGPT, is forthcoming. Updates availability: Troubled edtech startup Byju's is selling its US assets at steep losses, mandated by a US bankruptcy court. This and more in today's ETtech Top 5.■ Meta's AGI scramble■ Enter the Babyscalers■ Coming soon: iOS 26Embattled edtech firm Byju's is being forced to offload American assets , Epic and Tynker, at steep losses following an order from a US bankruptcy court. US lawsuit filed on April 10 against Byju's eponymous founder, Byju Raveendran, his wife Divya Gokulnath, and former company executive Anita Kishore, alleged they misappropriated $533 million from the funds lent to the group's special purpose financing vehicle, Byju's Alpha. In October last year , a Delaware Bankruptcy Court found that suspended director Riju Raveendran had violated his fiduciary responsibilities as a director of Byju's board has approved converting the company from a private limited entity to a public limited one. The move is a key step for the ecommerce firm's plans to list in the Meesho board has not cleared an IPO yet, the company said in a filing with the Registrar of Companies (RoC) that it 'intends to maintain readiness from a regulatory and compliance perspective to enable such an offering when deemed appropriate.'ETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship Zuckerberg, CEO, MetaMeta chief Mark Zuckerberg is assembling a team to develop artificial general intelligence (AGI), an AI system designed to match or surpass human capabilities, Bloomberg said on Monday that its annualised revenue reached $10 billion as of June , doubling from December 2024, driven by soaring enterprise and developer AI adoption.'Babyscalers' like Coreweave, Lambda Labs, Crusoe, and Nebius are taking on hyperscalers such as Amazon Web Services, Google Cloud, and Microsoft Azure, offering more competitive pricing and specialised neocloud firms chip away at the dominants of the giants, Indian data centres are positioning themselves to capitalise on the shift in global cloud lower cost of power and space has made babyscalers a magnet for private equity. Blackstone, Carlyle, and BlackRock have collectively invested $11 billion into this emerging Street banks have built a growing debt market around these forms. Babyscalers tap these funds to bulk-buy Nvidia chips, then lease them out by the hour or month to AI companies and unveiled a wave of major software updates on Monday at its Worldwide Developers Conference (WWDC), introducing revamped visuals, a new naming convention, and powerful tools under its Apple Intelligence suite. iOS 26 will be available as a free update for iPhone 11 and newer models, including the 12, 13, 14, 15, and 16 series.
