## Anthropic's Strategic Shift Towards Startup Acquisitions

In the rapidly evolving AI landscape, **Anthropic**, a key rival to OpenAI, is signaling a major strategic pivot. Recently valued at a staggering **$170 billion** in a funding round, Anthropic has informed investment bankers that it is preparing to ramp up its acquisition activities. This move comes as **OpenAI** has aggressively pursued startup deals, spending approximately **$6.4 billion in stock** to acquire three startups over the past 16 months. In contrast, Anthropic has remained relatively quiet on the M&A front until now.

This development highlights the intensifying competition in artificial intelligence, where acquiring innovative startups can provide critical technological advantages and talent. As Anthropic gears up for potential deals, the industry watches closely to see how this will reshape the AI ecosystem and challenge existing giants.

OpenAI has spent roughly $6.4 billion in stock to buy three startups over the last 16 months, while its smaller rival Anthropic has done barely any deals. But Anthropic, recently valued at $170 billion in a funding round, told investment bankers in recent weeks that it is getting ready to move ...

Anthropic's $170B Valuation Sparks Startup Acquisition Spree - What's Next?

![Viven | Image Credits: Viven](https://s.yimg.com/ny/api/res/1.2/9E6nWBH0hddCCNYRUl7M1A--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MTtjZj13ZWJw/https://media.zenfs.com/en/techcrunch_finance_785/cbead273c82531c3bd1aed19a9d3e2a5)

## The Problem of Unavailable Colleagues

In today's fast-paced work environments, teams often face delays when key colleagues are unavailable—whether they're on vacation, in different time zones, or simply busy. This can halt progress on critical projects, leading to inefficiencies and missed deadlines.

## Introducing Viven: AI-Powered Digital Twins

**Ashutosh Garg** and **Varun Kacholia**, the co-founders behind the successful AI recruiting startup **Eightfold** (last valued at $2.1 billion), have launched **Viven** to tackle this issue. Leveraging advances in **LLMs** and **data privacy technologies**, Viven creates a **digital twin** for each employee by analyzing their internal documents like email, Slack, and Google Docs. This allows team members to query the twin for immediate answers, even when the actual person is unreachable.

## Major Funding and Stealth Mode Exit

Viven recently emerged from stealth with a massive **$35 million seed funding round**. The investment was led by **Khosla Ventures** and **Foundation Capital**, with participation from **FPV Ventures** and others, signaling strong confidence in its innovative approach.

## How Viven's Technology Works

Each employee's digital twin is powered by a specialized **LLM** that accesses their electronic communications and documents. Other employees can interact with the twin as if they were speaking directly to the person, receiving quick responses based on shared knowledge and project details.

**Ashutosh Garg** explains, "When each and every person has a digital twin, you can just talk to their twin as if you're talking to that person and get the response."

## Addressing Privacy and Context Challenges

A significant hurdle in implementing such technology is handling **sensitive information** and personal data. Viven overcomes this through **pairwise context and privacy**, enabling its LLMs to determine precisely what information can be shared and with whom. The system is designed to recognize personal contexts and keep private matters confidential, such as questions about an employee's personal life.

Additionally, **query history visibility** acts as a safeguard, allowing employees to monitor interactions with their digital twin and deter inappropriate inquiries.

**Ashu Garg** of Foundation Capital noted, "It's a very hard problem to solve, and until recently, it was unsolvable."

## Early Adoption and Leadership

Viven is already being used by enterprise clients like **Genpact** and **Eightfold**. The co-founders continue to lead both Eightfold and Viven, dedicating their time to advancing AI solutions in recruitment and workplace efficiency.

Viven's seed funding was led by Khosla Ventures and Foundation Capital.

Unlock Your Team's Hidden Knowledge: How Viven's AI Digital Twins Are Revolutionizing Workplace Collaboration

## The Revival of Industrial Heartlands

In Auburn Hills, Michigan, a once-vacant factory surrounded by empty warehouses in America's auto industry heartland has been brought back to life. **Swarm Defense Technologies** moved into an 8,000-square-foot section last year to manufacture drones for defense. Rapid demand growth led them to take over the entire 14,000-square-foot facility by this summer.

Today, 47 employees work in the cavernous space, producing thousands of drones monthly for the U.S. military and other clients. These drones, just over 10 inches long and under 2 pounds, are used to test anti-drone systems and simulate attacks, turning the factory into a hub of activity in an area dotted with "For lease" signs.

Kyle Dorosz, 33, co-founder of Swarm, noted the huge demand for such drones and how making them in this location "feels right," as it's "in the DNA of this place."

## A Broader Trend in Defense Tech Manufacturing

Swarm is part of a larger movement where **hundreds of defense technology companies** are revitalizing manufacturing in once-vibrant industrial cities across the Midwest and Northeast. Drawn by **local talent, cheap labor, and state cash incentives**, these firms are building future weapons in old factories or constructing state-of-the-art sites in states like Michigan, Ohio, Pennsylvania, Rhode Island, and Delaware.

In January, **Anduril**, an AI-backed weapons manufacturer, announced a $1 billion factory in Ohio for drones and other AI-enabled weapons, with additional plans for Rhode Island and Mississippi. **Regent**, a shipbuilding startup, is building a factory in Rhode Island for electric sea gliders for military use, while **UXV Technologies**, a Danish drone and robotics company, opened a facility in Pennsylvania last year.

## Political and Economic Drivers

The locations of these factories are not only good for business but also align with political agendas. President Donald Trump has promoted domestic manufacturing, imposed tariffs on imports, and restricted military purchases from foreign adversaries like China. State lawmakers are eager to attract defense tech firms to **create jobs** and boost local economies.

Sen. Jon Husted, R-Ohio, emphasized that "America is waking up to the fact that our national security depends on making more stuff in America," highlighting Ohio's manufacturing competency. Christian Garrett, an investor at 137 Ventures, which backs companies like Anduril and Palantir, advised startups to build in industrial towns to gain favor with the federal government and military, noting that the government sees this as bringing valuable jobs to these states.

## Workforce and Infrastructure Advantages

Despite advances in AI and autonomous systems reducing the need for massive labor forces, these companies can train workers in transferable tech skills. Zachary Mears, Anduril's senior vice president of strategy, cited Ohio's $310 million grant and tax-incentive package, workforce access, existing infrastructure, and logistics as key reasons for their expansion. The new 5 million-square-foot modular facility, set for completion early next year, will employ 4,000 people.

Billy Thalheimer, CEO of Regent, chose Rhode Island for its boatbuilding heritage, making it a "mecca" for talent and more affordable than relocating experts. Maddie Macfarlane, a former Navy officer, joined Regent for its Rhode Island location and defense-focused mission, noting the skilled workers and proximity to the Naval War College as advantages.

## Challenges and Success Stories

Aaron Slodov, CEO of Atomic Industries, cautioned that building in former industrial towns requires time and long-term planning due to supply chain complexities and volume manufacturing hurdles. However, Swarm's success serves as a case study. Founded in 2017 as Firefly for drone light shows, it pivoted to defense last year, renaming to Swarm and converting an old Qualcomm chip factory with help from local welders and assembly line experts.

The Army, Air Force, and Navy now purchase Swarm's drones, each taking less than five minutes to produce, while the company continues making drones for entertainment. Dorosz highlighted the local connection, with nearly every employee having family ties to nearby auto assembly lines, underscoring the revival's personal impact.

Drawn by local talent, cheap labor and state cash incentives, startups building the weapons of the future are revitalizing manufacturing in once-vibrant industrial towns.

How Defense Tech Startups Are Reviving America's Rust Belt with High-Tech Factories

## Brothers Shraman and Shreyas Kar Drop Out of Stanford to Pursue AI Video Venture

At just 19 and 20 years old, brothers **Shraman and Shreyas Kar** made the bold decision to leave **Stanford University** to focus entirely on their **AI video startup**, **Golpo**. Their gamble paid off when they successfully graduated from the prestigious **Y Combinator** accelerator program and secured an impressive **$4.1 million** in funding.

![Shraman and Shreyas Kar, both wearing Stanford merch and posing next to a window.](https://i.insider.com/68ed1fe75dbc4fd10daaba0e?width=700)
*Golpo cofounders Shraman and Shreyas Kar.*

## The Journey from Stanford to Y Combinator

The Kar brothers' story represents a growing trend of young entrepreneurs choosing to **bypass traditional education** in favor of pursuing high-potential tech ventures. Their acceptance into **Y Combinator**, one of the world's most competitive startup accelerators, provided them with the mentorship, network, and validation needed to attract significant investor interest.

## Building Golpo: An AI-Powered Video Platform

While specific details about Golpo's technology remain limited in the available content, the startup appears to be focused on **artificial intelligence applications in video creation and processing**. The $4.1 million funding round suggests strong investor confidence in both the team's capabilities and the market potential of their AI video solution.

## Young Founders Making Waves in AI

The success of the Kar brothers highlights how **young entrepreneurs** are increasingly making significant impacts in the **AI startup ecosystem**. Their ability to secure substantial funding at such a young age demonstrates that investor confidence in AI technologies remains high, particularly when combined with promising founding teams.

## The Future of Golpo

With their Y Combinator graduation complete and $4.1 million in funding secured, the Kar brothers are now positioned to scale their AI video platform and compete in the rapidly evolving **AI and video technology market**.

Stanford dropout brothers Shraman and Shreyas Kar have raised $4.1 million for their AI video startup, Golpo.

Stanford Dropouts Raise $4.1M for AI Video Startup Golpo After Y Combinator Success

## The Genesis of Flow Engineering

At just 14 years old, Pari Singh earned enough money to trigger an existential crisis. Seventeen years later, Singh remains tight-lipped about the details of that early business venture, but it sparked a pivotal moment in his life.

"It wasn't a lot of money, but enough that I thought I'd sold out," recalled Singh, who grew up in London. "I was 14 and I had to work out what I wanted to do with my life. So, every day for two weeks, I thought about it really deeply. I did nothing else. And I basically came to a set of conclusions that have driven my life ever since: There are two universes, one in which you're born, and one in which you're not. The delta between the two, the positive difference, is how much good you've done as a human—and you want to maximize that."

Despite the profound nature of this realization, Singh is remarkably effervescent and optimistic in conversation. His journey led him to become a mechanical engineer, working at industry giants like **BAE Systems** and **BP**. Early in his career, he recognized that **hardware engineering** was undergoing a dramatic transformation, with traditional processes clashing with an accelerating future.

"I wanted to design and invent stuff, and what I saw in the industry was that the tools, processes, and workflows—the fundamental approach to how we design hardware—haven't fundamentally changed since the space race," Singh explained. "But the products we're building have gotten massively more complex. Software now basically drives every element of every component. And there was a disconnect between the products we were designing and the approach to design."

## Building the Future of Hardware Design

In 2023, Singh founded **Flow Engineering**, building upon a tool he had previously developed for designing rocket engines. Today, Flow assists companies like **Rivian**, **Joby Aviation**, **Astranis**, and **Radiant** in tackling complex engineering challenges and enabling agile, iterative hardware development. Central to Flow's platform is the concept that **requirements**—the precise needs a physical hardware product must meet during construction—should function as a "living, breathing nervous system" that evolves, rather than remaining static.

## Major Funding and Strategic Backing

Flow Engineering has secured a **$23 million Series A funding round**, led by **Sequoia**, with participation from **Odyssey Ventures**, Unity's David Helgason, and Stripe's Patrick and John Collison. In a significant endorsement, Sequoia managing partner **Roelof Botha** will join Flow's board. Botha views Flow as a leader in a broader shift where hardware is no longer separate from software but is increasingly defined by their intersection.

Driven by onshoring trends, technological advancements, and geopolitical necessities, a burgeoning hardware ecosystem is emerging, mirroring the evolution of software from vertically integrated companies to horizontal ecosystems. "The software industry benefited because it was software developers themselves that built their own tools," Botha noted. "Like GitHub, a great tool for software developers, built by software developers." As hardware and software development converge, companies like Flow and Nominal (another Sequoia-backed platform) are uniquely positioned to gain traction.

## The Global Hardware Race

As 2025 draws to a close, tensions in U.S.-China relations highlight a competitive landscape in manufacturing. Singh pointed out, "It's effectively a new space race, and China is in pole position. If you look at the pace of innovation and the pace of growth, they're actually at a higher trajectory than the U.S." Estimates suggest that by 2030, China could account for 45% of global manufacturing, while the U.S. drops to 11%.

Is the race already lost? Singh believes the U.S. holds a critical advantage: "I think the ace we have up our sleeve is safety. I'd get in an Archer. I would get on a Falcon 9. I would not get on China's rocket," he said, referencing U.S.-made electric air taxi Archer and SpaceX's reusable rocket.

## The Existential Mission

For Singh, the mission of Flow Engineering ties back to his teenage commitment to maximizing his positive impact on humanity. "If we are successful, our impact to humanity is that we get to Mars faster," he asserted. "We decarbonize the atmosphere faster. Humanity's most important problems right now are problems of the physical world. It's not just AI. AI needs to be in the real world to be able to have an impact—and that's all going to be built on Flow."

Flow Engineering has raised a $23 million Series A, led by Sequoia and including the Collisons, Fortune has exclusively learned.

Flow Engineering's $23M Series A Fuels Hardware Revolution Led by Sequoia

Venture capitalists may need to spice up the vanilla term sheets they give to founders to protect their own investors.

## Driving the News
Andrew Tulloch has left Thinking Machines, the AI lab he cofounded with fellow OpenAI veteran Mira Murati, for a job at Meta.

- Thinking Machines put a positive spin on the move, saying it's "grateful for what [Tulloch] helped build here," but that's cold comfort for those who just plugged **$2 billion** into the AI upstart at a **$10 billion valuation**.
- It's the latest in a series of **AI founder departures**, sometimes structured as acqui-hires, that have forced remaining stakeholders to grin and bear it.

## Zoom In
Venture capitalists could consider adding **key-man provisions** to their term sheets, or at least those tied to outsized checks. If it works for the funds themselves, why not for their portfolio companies?

- VCs constantly talk about how they invest more in **people than in ideas or products**, so shouldn't they have an out if the people leave?
- Another option would be to change **founder vesting schedules**, many of which now include 25% upfront and 40% within a year.

## For the Record
We don't know details of Tulloch's vesting schedule with Thinking Machines, nor other financial terms of his departure.

- Plus, his situation is particularly thorny because Thinking Machines' lead investor is **Andreessen Horowitz** — the firm led by Meta board director Marc Andreessen.

## Behind the Scenes
Adding more teeth to term sheets may run afoul of venture capital's **"founder friendly" culture**, but we're beginning to see some of it in other areas.

- For example, sources say that **Menlo Ventures** is telling founders during initial funding discussions that it will participate in secondaries when its position is 10x cost basis and the founder is selling.
- This is really just an affirmation of existing **co-sale rights**, but it's notable that Menlo is making its intentions explicit.

## The Bottom Line
**Alignment of interests** is a cornerstone to startup investing. Right now, it's looking a bit skewed.

Alignment of interests is getting skewed.

Why AI Founders Are Forcing Venture Capital to Rethink Term Sheets

## A Major Celebration of Innovation and Entrepreneurship

**Tech St. Santa Monica** officially launched **LA Tech Week 2025** on Monday, October 13, transforming Ocean Avenue and areas of Palisades Park into a vibrant showcase of innovation and entrepreneurship.

## Expanded Collaboration Drives Growth

The outdoor celebration expanded significantly from last year's inaugural street fair through a powerful collaboration between the city of Santa Monica, **Syndicate**, the **Los Angeles County Economic Development Corporation**, **Hustle Fund**, **Alumni Ventures**, **Santa Monica Chamber**, and **Santa Monica Travel & Tourism**.

## Uniting the Innovation Ecosystem

This major event united **startups**, **venture capital firms**, corporations, creators, and residents to showcase the region's thriving innovation ecosystem. Attendees experienced diverse features including:

- Interactive exhibits
- Robotics demonstrations
- Live performances
- Beer garden
- Community partner showcases

## Celebrating Santa Monica's Dual Identity

The event celebrated Santa Monica as both a premier **cultural destination** and a leading **innovation hub**, coinciding with the city's 150th anniversary celebrations. Santa Monica is a key component of Southern California's "**Silicon Beach**" and serves as headquarters for major companies including **Snapchat**, **Headspace**, **GoodRx**, and **Activision Blizzard**.

## Legacy of Technological Innovation

The city has incubated numerous cutting-edge technologies that have transformed industries, including:

- **Coco food delivery**
- **Bird Scooters**
- **Happy Returns**
- **Dollar Shave Club**

Top venture capital firms such as **Andreessen Horowitz**, **Clearstone Venture Partners**, and **Upfront Ventures** have chosen Santa Monica for their headquarters, cementing the city's status as a venture capital hub.

## Official Recognition of Innovation Legacy

"As Santa Monica celebrates its 150th anniversary, we honor not only our city's rich history but also its enduring role as a hub of innovation," said Mayor Lana Negrete.

![Tech St. Santa Monica event photo](https://smdp.com/wp-content/uploads/sites/21/2025/10/docswrite-AD_4nXfnMbpue3CUq5o4ubh9vHINbLny.webp)

![Innovation showcase at Tech St. Santa Monica](https://smdp.com/wp-content/uploads/sites/21/2025/10/docswrite-AD_4nXc2Yq6y8RLV9jvV7ENVCB5BHvUS.webp)

![Community engagement at the festival](https://smdp.com/wp-content/uploads/sites/21/2025/10/docswrite-AD_4nXeHYHFz4XWWsE-IPah2GAGk91fu.webp)

Discover the highlights of LA Tech Week 2025 in Santa Monica, featuring innovation, entrepreneurship, and a showcase of cutting-edge technologies.

Santa Monica's Tech Street Festival Ignites LA Tech Week 2025 with Innovation Showcase

![Prem Kumar, CEO of Humanly](https://cdn.geekwire.com/wp-content/uploads/2022/08/PK-2.jpg)
*Prem Kumar, CEO of Humanly, during an episode of the GeekWire series “Elevator Pitch.” in 2022. (GeekWire File Photo)*

Seattle-based startup **Humanly** is acquiring three recruiting technology companies—**Sprockets**, **Qualifi**, and **HourWork**—to build a comprehensive hiring platform that integrates sourcing, screening, interviewing, and post-hire engagement into a single system.

Founded in 2018, Humanly uses **automation software** to help companies with high-volume hiring needs screen job candidates, schedule interviews, automate initial communication, run reference checks, and more.

### Key Acquisitions and Their Impact

- **Sprockets** brings sourcing and frontline manager tools to strengthen talent pipelines.
- **Qualifi** adds automated phone and voice screening, complementing Humanly’s existing chat, SMS, and video systems.
- **HourWork** extends Humanly into **post-hire engagement**, helping companies onboard, train, and retain hourly workers.

Terms of the acquisitions were not disclosed.

This expansion comes shortly after Workday’s $1 billion acquisition of Paradox, one of Humanly’s main rivals, highlighting increased M&A activity in the HR software sector this year.

### Humanly’s Vision and AI Integration

Humanly’s broader goal is to automate outreach and screening for every applicant, not just the small fraction that typically receives a response. CEO Prem Kumar emphasized, "Anytime there’s a two-way conversation with a job candidate, we want to make that more efficient, more equitable."

Generative AI tools have led to a surge in application volumes as candidates mass-apply, making it harder to differentiate them. Humanly addresses this with its own AI tools, including the **AI Video Interviewer** launched earlier this year, which automatically conducts and transcribes interviews.

Kumar clarified that the aim is not to replace recruiters but to expand access: "It’s helping you get to 100% of candidates, not 5%." He noted some pushback from candidates wary of AI interactions but stressed that for many, it’s the difference between engaging with AI or being ignored entirely.

Humanly leverages millions of transcripts from its AI chat and video systems to train models that score candidates more accurately and aid recruiter decisions.

### Growth and Future Plans

The startup now manages **600 million candidate profiles** and facilitates interviews for about **250,000 candidates per month**. With over 100 customers, including Microsoft, Rogers Communications, MGM, and Dish Network, Humanly tripled its revenue in 2025 and plans to raise more investment next year.

Humanly is intentionally not profitable as it invests in infrastructure. The company employs just over 50 people post-acquisitions and is hiring staff from the acquired firms. It raised $7 million in May, bringing total funding to $24 million.

Kumar, who spent a decade at Microsoft integrating LinkedIn data, co-founded Humanly with Andrew Gardner and Bryan Leptich. The startup graduated from Y Combinator in 2019.

Prem Kumar, CEO of Humanly, during an episode of the GeekWire series "Elevator Pitch." in 2022. (GeekWire File Photo) Seattle-based startup Humanly is

Anthropic's $170B Valuation Sparks Startup Acquisition Spree - What's Next?

Summary:

Anthropic's Strategic Shift Towards Startup Acquisitions

Comments

Subscribe our newsletter to receive our daily digested news

ListMyStartup.app

Other Latest News

Unlock Your Team's Hidden Knowledge: How Viven's AI Digital Twins Are Revolutionizing Workplace Collaboration

How Defense Tech Startups Are Reviving America's Rust Belt with High-Tech Factories

Stanford Dropouts Raise $4.1M for AI Video Startup Golpo After Y Combinator Success

Flow Engineering's $23M Series A Fuels Hardware Revolution Led by Sequoia

Why AI Founders Are Forcing Venture Capital to Rethink Term Sheets

Santa Monica's Tech Street Festival Ignites LA Tech Week 2025 with Innovation Showcase

Humanly's AI Hiring Platform Expands with 3 Strategic Acquisitions to Automate Recruitment from Sourcing to Retention

Other Latest News

Unlock Your Team's Hidden Knowledge: How Viven's AI Digital Twins Are Revolutionizing Workplace Collaboration

How Defense Tech Startups Are Reviving America's Rust Belt with High-Tech Factories

Stanford Dropouts Raise $4.1M for AI Video Startup Golpo After Y Combinator Success

Flow Engineering's $23M Series A Fuels Hardware Revolution Led by Sequoia

Why AI Founders Are Forcing Venture Capital to Rethink Term Sheets

Santa Monica's Tech Street Festival Ignites LA Tech Week 2025 with Innovation Showcase

Humanly's AI Hiring Platform Expands with 3 Strategic Acquisitions to Automate Recruitment from Sourcing to Retention