Hello, Alexei Oreskovic pitching in for Allie today. Well folks, this week had it all: A new OpenAI model, reports of an upcoming SpaceX IPO, and even a Waymo baby! And to top it all off, OpenAI and Disney announced a surprise partnership that will include a $1 billion investment in OpenAI and enable OpenAI users to create AI-generated videos with Mickey Mouse and hundreds of other Disney characters.
The 3-year deal is a huge win for OpenAI (all the more so given that Disney simultaneously sent a cease-and-desist letter to Google, accusing the internet giant and OpenAI arch-rival of infringing its IP via its AI systems on a “massive scale”). The question is: Why is the Mouse House rolling out the red carpet for the ChatGPT maker?
You don’t need a lot of imagination to guess the sordid scenarios that await Disney’s family-friendly cast of characters now that the tortured souls of the internet will have carte blanche to feed them into the AI nightmare machine. There will be safeguards in place to prevent Mickey and friends from doing drugs, fornicating, and engaging in other unseemly or illegal behavior, a source told the Wall Street Journal. And I’m sure absolutely no one will figure out how to bypass those guardrails.
Entertainment businesses need to stay ahead of the trends and make sure they’re relevant to the next generation of consumers, of course. So hooking up with OpenAI is an obvious way for a company to stay connected with the kids. But if there’s any company that would seem in less immediate danger of losing the kids, it’s the company with The Lion King, The Little Mermaid, Donald Duck, and Iron Man.
This will certainly be an interesting adventure to watch. And perhaps Disney’s deal with OpenAI will prove prescient and astute. I just hope Donald can hold his liquor.
See you Monday,
Alexei Oreskovic
X:@lexnfx
Email:alexei.oreskovic@fortune.com
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Venture Deals
– Harness, a San Francisco-based AI-powered platform designed to ship code faster, raised $240 million in Series E funding. GoldmanSachs led the round and was joined by IVP, MenloVentures, and UnusualVentures.
– Port, a Middletown, Del.-based AI agent designed to handle some software developer tasks, raised $100 million in Series C funding. General Atlantic led the round and was joined by Accel, BessemerVenturePartners, and Team8.
– Serval, a San Francisco-based developer of AI agents designed for IT processes, raised $75 million in Series B funding. Sequoia led the round and was joined by Redpoint, Meritech, FirstRound, and others.
– Medra, a San Francisco-based AI platform designed to accelerate data generation for scientists, raised $52 million in Series A funding. HunanCapital led the round and was joined by LuxCapital, Neo, NFDG, and others.
– RelationalAI, a San Francisco-based enterprise decision intelligence platform, raised $22.5 million in funding from SnowflakeVentures and AT&TVentures.
– HavenEnergy, a Los Angeles, Calif.-based solar and home battery tech company, raised $15 million in Series B funding. GiantVentures led the round and was joined by CaliforniaInfrastructureBank, CarnriteVentures, ChaacVentures, ComcastVentures, and LererHippeau.
– Neosapience, the San Francisco-based developer of the Typecast platform for creating voice and video content designed to have emotional intelligence, raised $11.5 million in Series C funding. Intervest led the round and was joined by HBInvestment, K2Investment, and BokwangInvestment.
– Skydo, a Bangalore, India-based payments platform for global exporters, raised $10 million in Series A funding. SusquehannaAsiaVentureCapital and ElevationCapital.
– Subsense, a Palo Alto, Calif.-based developer of non-surgically invasive, nanoparticle-based brain-computer interfaces, raised $10 million in funding from GoldenFalconCapital.
– Kilo, a San Francisco-based open source coding agent, raised $8 million in seed funding. CotaCapital led the round and was joined by Breakers, GeneralCatalyst, QuietCapital, and TokyoBlack.
– OnMe, a San Francisco-based digital gifting platform, raised $6 million in seed funding. NFX led the round and was joined by existing investors LererHippeau and Focal.
– Cyphlens, a New York City-based enterprise security platform, raised $3.8 million in seed funding from SalesforceVentures, MotivateVentures, DCG, ex/ante, and CambrianVentures.
– Conveyd, a London, U.K.-based AI conveyancing platform, raised $3.3 million in seed funding. Eka Ventures led the round and was joined by PortfolioVentures and existing investor FoundersFactory and angel investors.
– Realm.Security, a Boston, Mass.-based security data pipeline platform, raised $2 million in funding from PresidioVentures.
Private Equity
– LongRidgeEquityPartners acquired a majority stake in OnCorpsAI, a Boston, Mass.-based agentic AI platform designed for fund operations, for $55 million.
– Aretum, a portfolio company of RenovusCapitalPartners, acquired VeteransEngineering, a Rockville, M.D.-based IT modernization, cybersecurity, and cloud architecture company for mission-critical government programs. Financial terms were not disclosed.
– Rentsync, backed by SilversmithCapitalPartners, acquired Spacelist, a Vancouver, Canada-based real estate listing marketplace. Financial terms were not disclosed.
Exits
– PerimeterSolutions agreed to acquire MedicalManufacturingTechnologies, a Charlotte, N.C.-based provider of medical manufacturing solutions, from ArclineInvestmentManagement for $685 million.
– ExperiGreenLawnCare, backed by WindPointPartners, acquired TurfMastersBrand, a Roswell, Ga.-based lawn care company, from CenterOakPartners. Financial terms were not disclosed.
Funds + Funds of Funds
– SwishVentures, a Tel Aviv, Israel-based venture capital firm, raised $100 million for a new fund focused on companies in cybersecurity, infrastructure, and AI.
People
– CoreInnovationCapital, a Los Angeles, Calif.-based venture capital firm, hired Michael J. Hsu as venture partner. He most recently served as Comptroller of the Currency.