## German AI Startup in Funding Talks at $4 Billion Valuation

**Black Forest Labs**, a prominent German artificial intelligence startup, is currently engaged in discussions to secure a significant funding round that could value the company at an impressive **$4 billion**. This development highlights the growing investor confidence in the AI sector, particularly in Europe.

### Exploring a Raise Between $200 Million and $300 Million

The startup is exploring raising between **$200 million and $300 million** in this round. This substantial capital injection is expected to fuel further innovation and expansion, positioning Black Forest Labs as a key player in the competitive AI landscape.

### Implications for the AI Industry

This funding round underscores the robust interest in AI technologies and the potential for startups to achieve unicorn status rapidly. It also reflects broader trends in venture capital flowing into cutting-edge tech sectors, driving advancements and market growth.

Black Forest Labs explores raising between $200mn and $300mn

German AI Unicorn Black Forest Labs Eyes $4 Billion Valuation in Major Funding Round

![Image Credits: Michael Nagle / Bloomberg / Getty Images](https://s.yimg.com/ny/api/res/1.2/sQe_hVwP8iGGf2qPcbgABA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTQyNztjZj13ZWJw/https://media.zenfs.com/en/techcrunch_finance_785/2e3ec46be0e5c601a08b2e9382b23528)

*Welcome back to **TechCrunch Mobility** — your central hub for news and insights on the future of transportation.*

The autonomous vehicle industry is years — maybe decades — from maturing. And so there’s still a Wild West quality to the sector, in spite of the steady stream of announcements that do show marked progress. Two such news items from this week illustrate my point of progress, possibility, and even a bit of peril (at least to the ups and downs a public market can provide).

## Gatik's Expanded Partnership with Loblaw

First up is **Gatik**, an AV and logistics startup that is applying its tech to middle-mile trucks. The startup, which I first wrote about in 2019, announced a multi-year and expanded commercial partnership with Canada’s largest retailer, **Loblaw**. Under the deal, Gatik will deploy 20 autonomous trucks by the end of 2025 to provide driverless delivery to Loblaw’s network of stores in the greater Toronto area. Co-founder and CEO **Gautam Narang** told me the company will add another 30 autonomous trucks to the fleet by the end of 2026.

The deal is notable, and not just because of the fleet size. As Narang explained to me, the trucks will be handling the full regional network for Loblaw. This means these third-generation AV trucks will operate autonomously to pick up products from two distribution centers and make deliveries to over 300 retail stores. "These are multiple brands within the Loblaw umbrella," he said.

In other words, this is not some fixed-route pilot program. It’s **commercial**, and it’s **complex**.

## Kodiak Robotics Goes Public

Next up is **Kodiak Robotics**, another startup I have reported on since its founding. The company, which is developing self-driving trucks for highway, industrial, and defense uses, began trading on Nasdaq this week under the tickers KDK and KDKRW.

The company, which is now called **Kodiak AI**, went public via a merger with special-purpose acquisition company **Ares Acquisition Corporation II**, an affiliate of Ares Management. The deal valued the startup at about **$2.5 billion**.

Kodiak raised **$275 million** in financing. More than $212.5 million came from certain institutional investors, including $145 million in PIPE funding and about $62.9 million in trust cash from Ares. It should be noted that the trust cash is smaller (it was $562 million), as some SPAC investors redeemed their shares.

I spoke to founder and CEO **Don Burnette** the day before Kodiak’s big debut about why he took the company public — let alone via a SPAC. It was a big moment for Burnette, whose family was on hand to watch him ring the bell and mark the milestone. The stock was trading at about $7.70 Friday, down about 10% from its market open.

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation.

Self-Driving Trucks Take Off: Kodiak's Public Debut and Gatik's Major Retail Deal

Meet **Rebecca Adams**, the Chief People Officer at **Cohesity**, a data protection startup with **$1.5 billion-plus in revenue** and close to 6,000 employees. The key to driving further growth, she’s decided, is training her managers in how to work with—even talk to—**Gen Z**. Speaking of her own and her managers’ interactions with younger colleagues, and even some of her conversations with her children, ages 18 and 20, “it gives me some empathy,” she says. “It also is mindboggling” to see how differently young people approach work.

This new generation of workers is different in that they **don’t accept a manager’s directions at face value**, she says. “They want to know why, how, they want constant feedback.” Adams said Cohesity has had to teach the managers how to lead this generation of workers, while also teaching some seemingly “basic things” to younger workers, like “how do I manage my calendar? You actually have to accept the meeting request. You can’t just walk out of the meeting that you’re in because you have another one while it’s still going on.”

## Boundaries and Oversharing

Adams related an anecdote of a lunch program where a senior leader takes an intern out, and an instance where a manager was kept waiting by a successful intern who had just signed on to convert to full-time. The intern explained, “Sorry, I’m late, I just had to walk, I was just in a meeting.” The manager was horrified to learn that their lunch date had interrupted a business meeting, but the intern said they had “a lot going on” so it was fine for them to leave the meeting early for lunch.

She said on one hand, she thought it was “adorable” that the intern didn’t realize that a meeting would rank ahead of a previously agreed-upon lunch date. But on the other hand, there’s a clear need for some training on both sides here. Managers have to very explicitly explain the terms of each invite to their colleagues, in other words.

“When I was in my 20s and when I was out of school,” Adams says, “I learned so much from sitting in the cube next to my manager and hearing her and experiencing people dropping by my office.” She described a “struggle,” more on senior leaders’ part than her Gen Z interns, one part from the “mind shift” that comes with really understanding Gen Z, but “it’s also a shift trying to get [older] people back into the office. The Z’s want to come into the office, hybrid … they have no problem with it,” but that’s not the case with the rest of her workforce, which might find return-to-office more disruptive to family commitments. “I find the other workers are resisting coming back to the office because they had the taste of working from home and they … just want to keep it that way.”

She added that older workers also seem to have a hard time communicating with Gen Z, particularly when using different tools all day long. “Videos, slacks, everything being text, quick, quick, quick. The later-in-career employees want emails, spreadsheets.” This is a struggle for Gen Z, who has what she calls a “don’t-want-to-talk-on-the-phone disease.”

## Hard Learnings

Adams’ home life became a sounding board for the fast-changing workplace. She brought up the example of her older son and the subject of internships. His attitude equates to “I really need to love the job and I need to love the company.” Her first response was bafflement: “What do you mean? I was a waitress for many years.”

But she came to see this in her workforce, too, and an admirable transparency compared to previous workplace norms. “they have no problem saying, ‘Yeah, I can’t do that. I walk my dog at that time or I have a nail appointment.’ Like, they share everything, which I admire.” Adams said this oversharing tendency “fascinates me” and added that when she was pregnant in her 20s, she wouldn’t even disclose when she had doctor’s appointments, and would come back to work as if nothing happened. She said it used to be normal to “omit” information in the workplace, in the days before “bring your whole self to work,” but her younger colleagues are “very transparent with all of their thoughts and activities.”

Adams found that to work with Gen Z, she had to shift away from the “because I told you so” mentality common with the bosses of old. Instead, she taught leaders to explain the “why” behind workplace decisions and foster a sense of shared mission. Adams is far from the only workforce expert to see these patterns in Gen Z and their often-befuddled older coworkers: they ask “why” a lot and they don’t like being told to do things without good explanations.

Marlo Loria, Director of Career and Technical Education and Innovative Partnerships at Mesa Public Schools in Arizona, previously told Fortune that her school district is full of inquisitive Gen Zers who are questioning traditional ways of doing things. “Our youth want to know why. Why do I need to go to college? Why do I want to get in debt? Why do I want to do these things?” Loria specifically said that “because I told you so” as an explanation isn’t cutting it anymore.

And Derek Thomas, national partner-in-charge of university talent acquisition at KPMG U.S., previously told Fortune that he also hears the “why” question a lot. He said he’s seen an attitude among Gen Zers like, “Okay, you’re telling me it’s going to be good for me, but is it really?” The more that leaders can demonstrate why something is worth doing, in his experience, the more Gen Z will follow through.

## Fundamentals Matter

Coming at this issue from another perspective, HR leader Jeri Doris insists that “stereotypes are hard” for her: she actively rejects applying generalizations to different generations at work. As Chief People Officer at Justworks, which manages HR for over 14,000 small and medium-sized businesses, Doris emphasizes fundamentals to managers. She told Fortune that she believes viral catchphrases like “quiet quitting” or “job hugging” are just confusing buzzwords that get in the way of real management.

![Jeri Doris](https://fortune.com/img-assets/wp-content/uploads/2025/09/jeri-doris.jpg?w=1440&q=85)

courtesy of Justworks

A cornerstone of Doris’ approach is to “not make assumptions—ask.” She stressed the value of data in the forms of engagement surveys and analytics. Most importantly, she said, simply talking to employees, both as groups and individuals, is invaluable for good management. Nevertheless, Doris acknowledges that her own use of data reflects a significant shift toward mission- and impact-driven work, especially among Gen Z employees. From her own survey data at Justworks—where she notes that pride and mission orientation score in the 85th percentile—she sees younger workers in particular wanting to understand the “why” behind their tasks. “It’s just table stakes now,” Doris said, urging managers to always link daily work to overall strategy and organizational purpose.

Referring to herself as something of a throwback, Doris explains that she’s a product of the “old-school” General Electric HR rotational program, which dates back to the 1940s and the dawn of modern management theory. (Much of this dates back to one man, the “original management guru” Peter Drucker, who consulted with GE, IBM and other blue-chip Fortune 500 firms as he pioneered a shift away from top-down corporate structure and into a modern structure, with midlevel management and delegation of responsibilities.)

Doris noted that that she went to both GE’s famous Crotonville campus in the Hudson Valley of Upstate New York as well as Deloitte University, and later worked at Groupon when it was one of the fastest-growing companies of all time, onboarding 100 people a day. Modern management, Doris asserts, especially in the startup space, has a lot of leaders who “haven’t had time to invest in themselves.” (Midlevel managers in their late 30s and early 40s recently told Fortune that they had received minimal training, with mentorship few and far between.)

Adding that “new manager leadership training is absolutely paramount,” Doris says that she feels there’s a need for leaders to create more “space” for themselves. She said she thinks that new managers often aren’t reflective enough. They don’t ask themselves, “How did I show up today? What do I want to show up as?” As Doris continued talking, she sounded like she was describing a lot of the Cohesity managers in Adams’ Gen Z training.

## Tremendous Pressure

Adams did sound a note of concern, something that she says is both “scary and fascinating” to her: the amount of pressure she sees her Gen Z colleagues piling on themselves. They are intensely focused on the future, she said, laying out a litany of concerns that recalls Jonathan Haidt’s thesis on Gen Z as the smartphone-raised “anxious generation.” (Adams did not specifically cite Haidt’s book, but Fortune has previously reported on the role of workplace dynamics in rising young worker “despair.”)

The Cohesity executive said she sees tremendous self-imposted pressure to accomplish many things as soon as possible, with the attitude being “because I might not want to do this later, by age 30.” She described it as, “I want to have everything locked in so that I can then decide if I want to get married, if I want to have kids, so I want to career-climb as much as possible before that, but I also want to travel and have lots of work-life balance.” She said she was frustrated recently when a very successful intern turned down a full-time offer to travel for a year instead. (Adams later clarified that she does not watch TikTok and had no awareness of the viral fall trend of “the great lock-in,” so any resemblance in her remarks was coincidental.)

Adams said she sees so much anxiety in Gen Z: What will AI do to their jobs? Will they even have a job? Will they be replaced? “It’s like a lot of pressure that they’re putting on themselves.” They’re different from millennials, though, she added, summing up their attitude like, “OK, you gave me a job. When am I going to get promoted?” Gen Z is “willing to work hard,” she concludes, just “at their own pace.”

When asked about this program’s success, Adams cites internal data showing decreased attrition and a “weekly pulse check” with high engagement and improving scores. Cohesity is planning to keep growing and is actually doubling its number of interns in the upcoming season, she added. This is a real commitment, since Cohesity commits to hiring on any intern who proves themselves a good performer. “We really do want to teach them, set them up for success and have them be a future employee.

Adams issues a call to corporate America, saying that 30% of all workers will be Gen Z by 2030, so “they are the future of our workplace and the organization.” She said “we have to be open and patient and not just expect them to be like us … They think different. I learn from them because the way they go about things is just different, and they have a fresh approach. So we can’t get stuck.”

Rebecca Adams, chief people officer of Cohesity, said Gen Z colleagues "share everything, which I admire," but sometimes "it also is mindboggling."

How This $1.5B Startup is Mastering Gen Z Management: The Secrets to Bridging the Workplace Generation Gap

## Kela Acquires AI Firm Pelanor in Multi-Million Dollar Deal

Defense startup **Kela** has completed its first acquisition with the purchase of **Pelanor**, an Israeli company that develops an **AI-based platform** to help organizations analyze cloud spending in real time and reduce costs through recommendations and automation. The acquisition is estimated at tens of millions of dollars.

Pelanor was founded in late 2022 by **Unit 8200 alumni** Matan Mates (CEO), Ido Kotler (CPO), and Yotam Tanay (CTO). Its system uses **artificial intelligence** to track the sources of changes in cloud expenses, automatically detect anomalies, and optimize resource allocation across customers, products, and projects. The company employs about 15 people.

![Kela founders](https://pic1.calcalist.co.il/picserver3/crop_images/2025/04/28/Hyx9oWnnJgg/Hyx9oWnnJgg_0_0_2000_1333_0_x-large.jpg)
*Kela founders. (Photo: Kobi Keunkas)*

Kela itself was founded in July 2024 and has raised about **$100 million** in under a year. It began with a $11 million Seed round led by **Sequoia**, followed by a $28 million Series A led by **Lux Capital** with participation from **In-Q-Tel** and other investors. A few months later, Kela expanded its funding with an additional $60 million from existing backers. The company currently employs 25 people.

Kela's founders include **Hamutal Meridor**, a graduate of Unit 8200, who previously managed **Palantir’s** Israeli operations, a company that develops combat management systems and has garnered significant interest since its IPO on Wall Street. In recent years, she was a partner at the **Vintage** investment fund.

Kela’s CEO is **Alon Dror**, a graduate of the **Talpiot program** who served for about a decade in the defense sector, first as tank commander and later in roles at the Directorate of Defence Research & Development where he was awarded the **Israel Defense Prize**.

Other co-founders include **Jason Manne**, an aeronautical engineer with a decade of experience in weapons development in the Israeli Air Force and the Intelligence Corps’ elite Technology Unit (Unit 81), and **Omer Bar-Ilan**, an experienced engineer and serial entrepreneur who previously led the algorithms team at **Rafael**.

Kela is building what it describes as an **“operating system for militaries”** - an open, modular platform designed to make military systems more dynamic and adaptable, in the same way civilian operating systems allow diverse applications to be integrated. The platform enables the rapid and secure connection of advanced commercial technologies, ranging from sensors and command-and-control systems to cyber tools and AI solutions, into existing military infrastructure. By collecting data from sources such as cameras, drones, and radars, processing it in real time, and presenting commanders with a unified situational picture, Kela aims to bridge the gap between fast-moving civilian innovation and the slower, more rigid processes of defense systems.

“Our strategy is to grow quickly, not just to meet demand, but to accelerate development and deliver capabilities at the pace that today’s reality requires,” said **Hamutal Meridor**, Kela’s president and co-founder. “The addition of the Pelanor team, among the brightest in Israel, is part of that effort: bringing in top talent who share our mission and vision to become the next great defense company for Israel and the West.”

**Matan Mates**, Pelanor’s CEO and co-founder, added: “We founded Pelanor out of a passion to solve hard and meaningful problems. When Kela approached us, it felt natural, we found a home where we could pursue our mission on a larger scale, alongside people who live and breathe a deep sense of purpose.”

The deal marks Kela’s first acquisition as it expands its next-generation military platform. 

Kela's First Acquisition: How This Defense Startup is Revolutionizing Military Tech with AI

## A Major Shift in the Data Management Landscape

**Fivetran**, a prominent startup that helps companies manage and prepare data for analytics and artificial intelligence, is reportedly in advanced discussions to acquire **dbt Labs**, a key player in data management. This potential deal, valued in the **multibillion-dollar range**, could reshape the competitive dynamics in the data industry.

### What This Means for the Industry

The acquisition would bring together two leading data companies that have been facing increasing competition from larger tech firms and other startups. **Fivetran** specializes in data integration and movement, while **dbt Labs** focuses on data transformation and modeling. Combining their strengths could create a more comprehensive data platform, offering end-to-end solutions for businesses leveraging data for AI and analytics.

### The Broader Context

This move highlights the ongoing consolidation in the data and AI sectors, as companies seek to build integrated offerings to meet growing demand. The deal, if finalized, is expected to have significant implications for customers and competitors alike, potentially accelerating innovation and setting new standards in data management practices.

Fivetran, a startup used by companies to manage and prepare data for analytics and artificial intelligence, is in talks to buy data management companydbt Labs, according to people with direct knowledge of the deal. The deal would combine two data companies that are facing competition from ...

Fivetran's Game-Changing Move: In Talks to Acquire Dbt Labs in a Multibillion-Dollar Deal

## AI Startup Friend's Massive Subway Ad Campaign

If you've been on the New York City subway recently, you've probably seen stark white ads promoting a wearable AI device called **Friend**.

![New York City Subway Platform](https://s.yimg.com/ny/api/res/1.2/ptsd8Kaj85zKMQyaJYAKew--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTM5NTtjZj13ZWJw/https://media.zenfs.com/en/techcrunch_finance_785/8975947000d4fd0b3076f101910c1928)
*New York City Subway Platform | Image Credits: Joe Josephs / Getty Images*

**CEO Avi Schiffman** told Adweek that the company spent **more than $1 million** on a campaign with over 11,000 cards on subway cars, 1,000 platform posters, and 130 urban panels. Some stations, like West 4th Street, are completely dominated by Friend ads.

### The World's First Major AI Campaign

Schiffman described this as "the world's first major AI campaign," noting that while there have been other AI ads of questionable effectiveness, this print campaign is on a massive scale. He called it "a huge gamble" and admitted, "I don't have much money left."

### Controversy and Criticism

Friend's $129 device has faced backlash, with Wired writers criticizing its **constant surveillance** and publishing an article titled "I Hate My Friend." Additionally, some Friend ads have been **vandalized** with messages calling it "surveillance capitalism" and urging people to "get real friends."

### Strategic Advertising in a Hostile Environment

Schiffman is aware that "people in New York hate AI ... probably more than anywhere else in the country." He deliberately designed the ads with lots of white space to encourage social commentary on the topic.

If you’ve been on the New York subway recently, you’ve probably seen stark white ads promoting a wearable AI device called Friend.

AI Startup Friend's $1M+ Subway Ad Gamble: Controversy and Vandalism in NYC

## AI Startup Friend's Massive Subway Ad Campaign

If you've ridden the New York City subway lately, you've likely encountered the stark white advertisements for **Friend**, a wearable AI device. These ads have become ubiquitous, sparking curiosity and controversy alike.

### The $1 Million Bet on Subway Advertising

CEO Avi Schiffman revealed to Adweek that the company invested **more than $1 million** in this extensive campaign. This included over **11,000 ads on subway cars**, **1,000 platform posters**, and **130 urban panels**. Some stations, like West 4th Street, are completely saturated with Friend promotions, making it impossible to miss.

Schiffman boldly claimed this as "the world's first major AI campaign," acknowledging it as "a huge gamble." He admitted, "I don't have much money left," highlighting the high-stakes nature of this marketing move. While other AI ads have been criticized for their effectiveness, this print campaign stands out for its sheer scale.

### Controversy and Public Reaction

The $129 Friend device has faced significant backlash. Wired published a scathing review titled "I Hate My Friend," criticizing its **constant surveillance** features. This sentiment has spilled over into the real world, with some subway ads being vandalized. Messages like "surveillance capitalism" and "get real friends" have been scrawled across them, reflecting public distrust.

Schiffman is no stranger to this animosity. He noted that "people in New York hate AI … probably more than anywhere else in the country." In response, he intentionally designed the ads with ample white space to encourage social commentary, turning potential negativity into engagement.

![New York City Subway Platform](https://techcrunch.com/wp-content/uploads/2018/05/gettyimages-185054053.jpg?w=1000)
*Image Credits: Joe Josephs / Getty Images*

Why This AI Startup Blew Over $1 Million on NYC Subway Ads in a Bold Gamble

## The Rise of Tiny Teams in AI-Powered Startups

AI-powered startups are proving that the **Tiny Team era** is here. Five founders and employees share the pros and cons of working alongside **AI agents**.

![Three young professionals, including two men and one woman, pose outdoors and on city streets.](https://i.insider.com/68d702f75dbc4fd10da9b460?width=700)

*Quentin Peccoux, Anada Lakra, and Shivam Sagar spoke with BI about what it's like to be part of a 'tiny team' startup in tech.*

### 'It's Like Having a Superpower'

Five people share what it's like to work at companies with more **AI** and less people. The integration of **AI agents** into daily operations is transforming how small teams function, offering unprecedented efficiency and capabilities.

### Insights from the Frontlines

Founders and employees highlight the advantages of leveraging **AI** to amplify their productivity. They discuss how **tiny teams** can achieve what traditionally required larger groups, thanks to **AI-powered tools**.

However, they also address the challenges, such as the need for continuous learning and adaptation to keep up with **AI advancements**. The balance between human creativity and **AI automation** is key to success in this new era.

AI-powered startups are proving the Tiny Team era is here. Five founders and employees share the pros and cons of working alongside AI agents.

German AI Unicorn Black Forest Labs Eyes $4 Billion Valuation in Major Funding Round

Summary:

German AI Startup in Funding Talks at $4 Billion Valuation

Exploring a Raise Between $200 Million and $300 Million

Implications for the AI Industry

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Other Latest News

Self-Driving Trucks Take Off: Kodiak's Public Debut and Gatik's Major Retail Deal

How This $1.5B Startup is Mastering Gen Z Management: The Secrets to Bridging the Workplace Generation Gap

Kela's First Acquisition: How This Defense Startup is Revolutionizing Military Tech with AI

Fivetran's Game-Changing Move: In Talks to Acquire Dbt Labs in a Multibillion-Dollar Deal

AI Startup Friend's $1M+ Subway Ad Gamble: Controversy and Vandalism in NYC

Why This AI Startup Blew Over $1 Million on NYC Subway Ads in a Bold Gamble

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How This $1.5B Startup is Mastering Gen Z Management: The Secrets to Bridging the Workplace Generation Gap

Kela's First Acquisition: How This Defense Startup is Revolutionizing Military Tech with AI

Fivetran's Game-Changing Move: In Talks to Acquire Dbt Labs in a Multibillion-Dollar Deal

AI Startup Friend's $1M+ Subway Ad Gamble: Controversy and Vandalism in NYC

Why This AI Startup Blew Over $1 Million on NYC Subway Ads in a Bold Gamble

How AI-Powered Startups Are Thriving with Tiny Teams: 5 Insiders Reveal the Superpower