**Chatbot Arena**, initially a humble academic endeavor at UC Berkeley aimed at ranking AI models, has catapulted into a **$600 million startup** named **LMArena**. This remarkable transition underscores the potential of academic projects to disrupt the tech industry.

### The Journey from Academia to Industry
What began as a project to evaluate AI tools' capabilities has now secured **$100 million in seed funding**, led by heavyweight investors **Andreessen Horowitz** and **UC Investments**. This funding round also saw participation from **Lightspeed Venture Partners**, **Felicis Ventures**, and **Kleiner Perkins**, among others.

### What This Means for the AI Landscape
The success of LMArena highlights the growing interest and investment in **AI evaluation and benchmarking tools**. As AI continues to evolve, the need for reliable assessment frameworks becomes increasingly critical, positioning LMArena at the forefront of this niche yet vital sector.

An effort that began at UC Berkeley as a way to rank AI models has raised $100 million from investors including Andreessen Horowitz.

From UC Berkeley Labs to $600M Valuation: The Unstoppable Rise of Chatbot Arena

**OpenAI** has made headlines with its **$6.4bn acquisition** of **io**, a startup founded by **Apple design legend Jony Ive**. This marks OpenAI's largest purchase to date, signaling a significant shift towards integrating AI with cutting-edge hardware design.

### The Vision Behind the Acquisition
Jony Ive, renowned for his work on the **iPhone, iPod, and MacBook Air**, teamed up with OpenAI CEO **Sam Altman** to create io. The partnership, two years in the making, is built on **shared values and ambition**. While details on upcoming devices remain under wraps, the duo hints at **tangible designs** emerging from their collaboration.

### Jony Ive's Legacy and Future with OpenAI
After a **27-year tenure at Apple**, Ive left in 2019 to start **LoveFrom**, a creative collective. io, part of LoveFrom, will now merge with OpenAI, focusing on **designing OpenAI's software and hardware**. Interestingly, Ive won't join OpenAI as an employee but will lead design efforts through his company.

### OpenAI's Hardware Ambitions
OpenAI has been quietly assembling a **hardware and robotics team**, including **Caitlin Kalinowski**, former head of Meta's AR glasses project. The company's investments in **Physical Intelligence**, a robotics startup, further underscore its commitment to bringing **AI into the physical world**.

### Financial Backing and Market Position
With a **$300bn valuation**, OpenAI continues to attract massive investments. Recent funding rounds, including a **$40bn SoftBank-led round**, highlight investor confidence. Microsoft's **49% stake** following a **$13bn investment** in 2023 also plays a crucial role in OpenAI's growth strategy.

### Other Strategic Moves
In addition to io, OpenAI has acquired **Windsurf ($3bn)** and **Rockset**, diversifying its portfolio and strengthening its position in the AI landscape.

The untested hardware startup, called io, was founded by Apple design guru Jony Ive

OpenAI's Bold $6.4bn Bet on Jony Ive's Secret Startup io: A New Era for AI Hardware

**Artificial intelligence training company Surge AI** has been hit with a lawsuit alleging it has misclassified contractors hired to improve chat responses from AI software for some of the world’s leading tech companies. 

The proposed class action lawsuit alleges that **“data annotators”** — hired by Surge AI to ensure that powerful AI systems run by Meta and OpenAI can properly generate text responses that are accurate and capable of mimicking human expressions — were **“deliberately” classified as independent contractors**, denying them benefits given to employees. 

In the lawsuit filed Monday, California-based plaintiff Dominique DonJuan Cavalier II, represented by public interest law firm Clarkson, alleged he and other data annotators were made to do **unpaid training** and were subject to **near-impossible time limits** for tasks that caused their pay to be docked. 

San Francisco-based Surge AI, also known as Surge Labs, and its subsidiaries **“have reaped enormous profits by deliberately avoiding paying wages and benefits** to those performing work that forms the backbone of Defendants’ business,” the lawsuit alleges.

Surge AI did not respond to a request for comment.

In recent years, AI data training companies have been **accused of mistreating workers abroad** in Kenya and elsewhere. But increasingly, as the AI industry balloons, workers in California and nationwide have begun to raise similar complaints.

Similar lawsuits have been filed against **Scale AI**, a larger AI training company that has gathered a vast workforce of contractors to train AI tools for companies, including Open AI and Google, as well as the U.S. Department of Defense. 

Surge AI has raised some **25 million**, according to Crunchbase. 

The much larger Scale AI is seeking a valuation as high as **$25 billion** in a potential tender offer, Reuters reported. 

Plaintiff Steve McKinney, a resident of Newbury Park who was hired by Scale AI’s subsidiary Outlier AI as a **“tasker,” sued the company in December** alleging he was promised a pay rate of $25 per hour but was ultimately paid only a fraction of that amount.

Workers who questioned the company’s payment practices in internal messaging app Slack were **abruptly removed from the app**, according to the suit, which was also brought by law firm Clarkson, headquartered in Malibu.

Scale AI contractors in January **hit the company with a second lawsuit**, alleging contractors were made to sift through graphic **“depraved images”** and emotionally distressing content, and dealt with post-traumatic stress disorder and other psychological issues as a result. 

Scale AI did not immediately respond to a request for comment. A company spokesperson told TechCrunch in March that its work was misunderstood by regulators and others and that the company offers **“flexible work opportunities”** to Americans.

The artificial intelligence training platform Surge Labs Inc has been accused of deliberately misclassifying its workers, denying them key benefits afforded to employees.

Surge AI Faces Lawsuit Over Worker Misclassification: A Growing Trend in Tech?

**A dozen South Carolina agribusiness ventures** have been selected to receive funding through the **SC Dept. of Agriculture's Agribusiness Center for Research and Entrepreneurship (ACRE) program**. This initiative aims to bolster innovation and growth within the state's agricultural sector by providing **$200,000 in grants** to promising startups and entrepreneurs.

### **Highlighting Innovation in Agriculture**
The ACRE program is a testament to South Carolina's commitment to fostering **agricultural innovation and entrepreneurship**. By supporting these ventures, the state is not only investing in the future of farming but also in sustainable and technologically advanced agricultural practices.

### **The Impact of Funding**
Each of the 12 recipients will receive a portion of the $200,000 fund, enabling them to **scale their operations, enhance product development, and expand market reach**. This financial boost is crucial for early-stage agribusinesses looking to make a significant impact in the industry.

### **A Look at the Recipients**
While the names of all recipients haven't been disclosed, the program highlights a diverse range of agribusiness ventures, from **organic farming initiatives to agri-tech startups**. This diversity underscores the breadth of innovation present in South Carolina's agricultural sector.

A dozen South Carolina agribusiness ventures will be funded through SC Dept. of Agriculture's Agribusiness Center for Research and Entrepreneurship (ACRE) program

12 SC Entrepreneurs Win Big: $200K in Agribusiness Grants Unveiled

**OpenAI** is set to acquire **io**, a secretive AI device startup co-founded by **Apple Inc. veteran Jony Ive**, in a groundbreaking **$6.5 billion all-stock deal**. This marks OpenAI's largest acquisition to date, signaling a bold move into hardware development with the legendary designer at the helm.

### The Deal That Could Reshape AI Hardware

The acquisition not only brings **Ive** and his team of former Apple designers into OpenAI's fold but also secures a dedicated unit for crafting **AI-powered devices**. Ive, known for his work on the **iPhone, iPod, iPad, and Apple Watch**, sees this collaboration as the culmination of his 30-year career in design.

> "I have a growing sense that everything I’ve learned over the last 30 years has led me to this place and to this moment," Ive shared in a joint interview with **OpenAI CEO Sam Altman**.

### A New Chapter for Consumer Technology

This partnership represents a significant shift in the tech landscape, with **Ive** returning to the consumer technology arena he helped pioneer. The deal, expected to close this summer, will see **55 hardware engineers, software developers, and manufacturing experts** from io joining OpenAI to develop a new family of devices.

### The Vision Behind the Collaboration

Altman and Ive have been exploring ideas for **two years**, with their first device slated for a **2026 debut**. They aim to create a product that leverages AI in ways never seen before, moving beyond the smartphone to introduce a **new computing form factor**.

> "AI is such a big leap forward in terms of what people can do that it needs a new kind of computing form factor to get the maximum potential out of it," Altman explained.

### The Impact on Apple and the Tech Industry

The move could pose challenges for **Apple**, which has struggled to keep pace in the AI race. With Ive now working on rival technology, the pressure is on for Apple to innovate. Meanwhile, OpenAI continues to expand its reach, with other acquisitions like **Windsurf**, an AI coding software company, in the pipeline.

### The Team Behind io

io was co-founded by **Ive** alongside Apple alumni **Scott Cannon, Evans Hankey, and Tang Tan**, bringing together a team with deep expertise in product design and engineering. Their mission at OpenAI will be to develop devices for the era of **artificial general intelligence**, potentially redefining how we interact with technology.

### Looking Ahead

While details on the first product remain under wraps, the collaboration between **Ive and Altman** promises to deliver something truly novel. As Ive puts it, "People have an appetite for something new, which is a reflection on a sort of an unease with where we currently are."

OpenAI will acquire the AI device startup co-founded by Apple Inc. veteran Jony Ive in a nearly $6.5 billion all-stock deal, joining forces with the legendary designer to make a push into hardware.

OpenAI's $6.5 Billion Gamble: Jony Ive's Secret AI Startup io Joins Forces to Redefine Hardware

## **Filed Raises $17.2M to Automate Tax Preparation**

There's a new player in the accounting software arena, **Filed**, which has just secured a **$17.2 million** funding round led by **Northzone**, with participation from **Day One Ventures** and **Neo**. This startup is on a mission to **automate the tedious aspects of tax preparation**, leveraging **AI** to streamline the entire tax return lifecycle.

### **The Crisis in the Tax Industry**

Leroy Kerry, **Filed's co-founder and CEO**, highlights a growing crisis in the tax industry. With many **CPAs nearing retirement** and fewer students entering the field, the gap in tax professionals is widening. Kerry points to a **2021 report** by the Association of International Certified Professional Accountants, underscoring the urgency for innovation.

> **"Professionals are drowning in paperwork, spending nearly half their time on low-value tasks that could be automated,"** says Kerry.

### **How Filed Works**

Filed's **AI-driven platform** is designed to **read documents**, apply specific tax strategies, and input data into existing software systems. When the AI encounters scenarios requiring human judgment, it flags them for review, ensuring **accuracy without eliminating the human touch**.

- **Unique Selling Point**: Unlike competitors such as **Black Ore** and **Basis**, Filed's AI is tailored specifically for **tax workflows** and integrates seamlessly with current systems, avoiding the need for a tech overhaul.

### **The Vision Ahead**

With the fresh capital, Filed plans to **expand its team** and hire more **tax engineers**. Kerry envisions Filed becoming the **AI infrastructure backbone** for the entire tax industry, transforming areas from **client collaboration** to **audit preparation**.

> **"The industry has been waiting for its AI moment, and we’re just getting started,"** Kerry asserts.

### **A Founder's Journey**

Kerry's path to entrepreneurship is inspiring. Raised in **South London** by a single mother in low-income housing, he never imagined leading a tech company. His journey from a call center to managing teams and working with startups showcases his **resilience and ambition**.

- **Key Milestone**: Joining a startup that became a **unicorn**, Kerry gained invaluable experience in **venture and high-growth companies**, shaping his customer-centric approach.

### **Observing the Industry**

Before launching Filed, Kerry and his team immersed themselves in **small tax offices** in **Colorado and Arizona**, witnessing firsthand the reliance on **paper and fax machines**. This hands-on research informed Filed's development, ensuring it addresses real-world pain points.

**Filed** is not just another accounting tool—it's a **game-changer** for the tax industry, poised to redefine how professionals manage their workflows.

There is a new accounting software in town, coming in with a fresh $17.2 million raise and a desire to shake things up. The company, Filed, hopes to Filed, which uses AI to complete the lifecycle of a tax return, raised $17.2 million led by Northzone.

Filed Secures $17M to Revolutionize Tax Prep with AI - The Future of Accounting?

Meta is rolling out an exciting new initiative, **Llama for Startups**, designed to empower emerging companies to leverage its **Llama AI models**. This program offers **direct support** from Meta's Llama team and potential funding, marking a significant step for startups in the generative AI space.

### **Eligibility and Benefits**
Startups based in the U.S., incorporated, with less than $10 million in funding, and at least one developer on staff, are eligible to apply by **May 30**. Selected members could receive **up to $6,000 per month for six months** to aid in developing their generative AI solutions.

### **Meta's Vision and Challenges**
Meta aims to solidify its position in the **open model space**, despite facing competition from giants like Google and Alibaba. The initiative comes amid challenges, including delays in flagship model rollouts and controversies over benchmark performances.

### **The Bigger Picture**
With ambitious revenue projections and significant investments in AI, Meta is betting big on **Llama** and its broader AI portfolio. The company is also exploring monetization strategies, including ads and subscriptions for its AI assistant, **Meta AI**.

### **Investment in the Future**
Meta's commitment to AI is evident, with a **GenAI budget exceeding $900 million in 2024** and plans to spend **$60 billion to $80 billion on capital expenditures** in 2025, primarily for new data centers.

Meta is launching a new program, Llama for Startups, to incentivize startups to adopt its Llama AI models.

Meta's Llama for Startups: A Golden Opportunity for AI Innovators

In a significant move within the digital health sector, **Recovery.com** has announced the acquisition of **RedFox AI**, a Madison-based AI startup. This merger brings together two of Madison's leading digital health companies, both of which have been recognized as recent **Best of Business Leadership Award** winners.

### A Strategic Move in Digital Health

The acquisition underscores the growing importance of **AI technologies** in enhancing digital health platforms. Recovery.com, known for its comprehensive resource website, aims to integrate RedFox AI's innovative solutions to further its mission of providing accessible health resources.

### What This Means for the Industry

This merger is a testament to the vibrant **startup ecosystem** in Madison and the potential for **AI-driven solutions** to revolutionize the digital health space. Both companies have a shared vision of leveraging technology to improve health outcomes, making this partnership a natural fit.

### Looking Ahead

With this acquisition, Recovery.com is poised to expand its offerings and enhance its platform's capabilities, setting a new standard for digital health resources. The integration of RedFox AI's technology is expected to bring **cutting-edge AI solutions** to Recovery.com's users, further solidifying its position as a leader in the digital health industry.

Resource website adds RedFox AI to its operation, merging two Madison-based digital health companies and recent Best of Business Leadership Award winners.

From UC Berkeley Labs to $600M Valuation: The Unstoppable Rise of Chatbot Arena

Summary:

The Journey from Academia to Industry

What This Means for the AI Landscape

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