Content kleptocracy, is Daze the next big thing in social media, and what bankers have to say about HBO's _Industry_

StrictlyVC Newsletter Briefing - October 22, 2024 Key Themes: AI advancements and controversies: This issue highlights both the exciting potential and emerging concerns surrounding AI. Startups are leveraging AI for creative applications (Daze), search (Perplexity AI), and financial services (One Zero), driving massive funding rounds. However, the lawsuit against Perplexity AI for "content kleptocracy" underscores the legal and ethical challenges around AI's use of copyrighted material. Gen Z and the future of social media: The explosive pre-launch popularity of Daze, a visually-driven messaging app, suggests a shift in how Gen Z interacts online. This trend points towards more creative, customizable, and visually-rich social experiences. Funding landscape: The newsletter showcases a robust funding environment, with numerous startups across sectors securing significant investments. AI, fintech, and healthcare emerge as particularly attractive areas for investors. Important Ideas/Facts: Content Kleptocracy: The Wall Street Journal and The New York Post are suing Perplexity AI, alleging the AI search engine steals their content. This lawsuit raises crucial questions about copyright infringement in the age of AI. Daze: The Next Social Media Giant? With 156,000 pre-launch sign-ups and millions of TikTok views, Daze, an AI-powered messaging app focused on visual communication, is poised for significant growth. Its success hinges on appealing to Gen Z's desire for creative and engaging online interactions. Massive Funding Rounds: Several companies secured substantial investments, including: Perplexity AI: Seeking $500+ million at an $8+ billion valuation for its AI-powered search engine. One Zero: Raising $100+ million to develop AI-powered retail banking services. Seaport Therapeutics: Secured a $225 million Series B round for developing oral medications for neuropsychiatric disorders. ZipHQ: Raised $190 million at a $2.2 billion valuation for its AI-powered business purchasing platform. Stripe Acquires Bridge: Stripe finalized its $1.1 billion acquisition of Bridge, a stablecoin payment infrastructure provider. This signals Stripe's commitment to expanding its presence in the cryptocurrency space. Elon Musk in the News: Musk faces a lawsuit from the producers of Blade Runner 2049 for allegedly using imagery from the film without permission. Additionally, Meta has cracked down on accounts tracking Musk's private jet, citing safety concerns. Notable Quotes: "[Daze] is easy to use and utilitarian, but also very free and unconstrained." - Willem Simons, founder of Daze, highlighting the app's blend of functionality and creative freedom. Further Discussion Points: What are the potential consequences of the "content kleptocracy" lawsuit against Perplexity AI? How will it impact the development and use of AI-powered content creation tools? Will Daze become the next major social media platform? How will its focus on visual communication shape the future of online interaction? What trends are driving the current surge in funding for AI and fintech startups? What are the potential long-term implications of these investments?