1010Computers | Computer Repair & IT Support

Google is making autofill on Chrome for mobile more secure

Google today announced a new autofill experience for Chrome on mobile that will use biometric authentication for credit card transactions, as well as an updated built-in password manager that will make signing in to a site a bit more straightforward.

Image Credits: Google

Chrome already uses the W3C WebAuthn standard for biometric authentication on Windows and Mac. With this update, this feature is now also coming to Android .

If you’ve ever bought something through the browser on your Android phone, you know that Chrome always asks you to enter the CVC code from your credit card to ensure that it’s really you — even if you have the credit card number stored on your phone. That was always a bit of a hassle, especially when your credit card wasn’t close to you.

Now, you can use your phone’s biometric authentication to buy those new sneakers with just your fingerprint — no CVC needed. Or you can opt out, too, as you’re not required to enroll in this new system.

As for the password manager, the update here is the new touch-to-fill feature that shows you your saved accounts for a given site through a standard Android dialog. That’s something you’re probably used to from your desktop-based password manager already, but it’s definitely a major new built-in convenience feature for Chrome — and the more people opt to use password managers, the safer the web will be. This new feature is coming to Chrome on Android in the next few weeks, but Google says that “is only the start.”

Image Credits: Google

 

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Point wants to provide credit card rewards with debit cards

Point, a new challenger bank in the U.S., is launching publicly today with an invite system. While Point is technically providing a bank account, the company focuses on rewards associated with a debit card.

“I started Point as a solution about everything that is frustrating and complicated about credit cards. The incentives between credit card companies and cardholders are misaligned,” Point co-founder and CEO Patrick Mrozowski told me.

When Mrozowski first got a credit card, he was spending a ton of money to reach a certain level of spending and unlock the sign-up bonus. At the end of the month, he ended up with credit card debt for no valid reason.

“What would American Express look like today?” he says to sum up Point’s vision. It comes down to two important principles — being in charge of your budget so that you don’t end up with debt and unlocking rewards from brands that you actually interact with.

Many challenger banks want to provide a simple banking experience for the underbanked. Point doesn’t have the same positioning. Creating a Point account is more like joining a membership program.

When you sign up, you get a debit card with some level of insurance as it’s a Mastercard World Debit card. You can expect some trip cancellation insurance, rental car insurance, purchase insurance, etc.

As the name of the startup suggests, you earn points with each purchase. You get 5x points on subscriptions, such as Spotify and Netflix, 3x points on food, grocery deliveries and ride sharing, and 1x points on everything else. Points can be redeemed for dollars — each point is worth $0.01. In addition to that, Point is going to create a feed of offers with discounts, content, events and more.

Due to its premium positioning, Point isn’t free. You have to pay $6.99 per month or $60 per year to join Point. Point doesn’t charge any foreign transaction fees.

You can connect your Point account with another bank account using Plaid. It lets you top up your account using ACH transfers. Behind the scenes, Point works with Radius Bank for the banking infrastructure, an FDIC-insured bank.

The company announced earlier this month that it has raised a $10.5 million Series A led by Valar Ventures with Y Combinator, Kindred Ventures, Finventure Studio and business angels also participating.

Image Credits: Point

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Huawei overtook Samsung in global smartphone shipments for Q2

Things haven’t exactly been smooth sailing for Huawei in recent years. The company’s rapid trajectory has been disrupted by on-going battles with the U.S. government that have, among other things, blocked its access to Google apps and services. But a new report from Canalys paints a reasonably rosy picture as the hardware giant overtook Samsung to snag the top spot in global smartphone shipments for the second quarter of 2020.

The news is a milestone for a number of reasons, not the least of which is the fact that this is first time in nine years that neither Apple nor Samsung has been at the top of Canalys’ charts. Huawei’s figures were almost exclusively boosted by sales in its native China, which currently comprises more than 70% of its total figure.

Image Credits: Canalys

It’s important to note here, however, the fact that the company took the top spot by essentially shrinking at a less rapid rate than Samsung. Huawei’s overall figures are down 5% year-over-year. But that figure pales in comparison to Samsung’s 30% drop. The two Goliaths are currently at 55.8 million and 53.7 million, respectively.

Things were bad for the smartphone industry prior to COVID-19, but the pandemic certainly hasn’t helped overall, as people are less inclined toward shelling out hundreds to north of $1,000 for inessential upgrades. And, indeed, Huawei’s numbers dropped by 27% outside of China, but the overall slide was dampened by an 8% growth in China. Samsung, meanwhile, currently controls less than 1% of the Chinese market.

As for what this all means for the future, it seems that it may be difficult for Huawei to maintain its top spot. “Its major channel partners in key regions, such as Europe, are increasingly wary of ranging Huawei devices, taking on fewer models, and bringing in new brands to reduce risk” Canalys’ Mo Jia said of the report. “Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover.”

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New Relic is changing its pricing model to encourage broader monitoring

In the monitoring world, typically when you spin up a new instance, you pay a fee to monitor it. If you are particularly active in any given month, that can result in a hefty bill at the end of the month. That leads to limiting what you choose to monitor, to control costs. New Relic wants to change that, and today it announced it’s moving to a model where customers pay by the user instead, with a smaller, less costly data component.

The company is also simplifying its product set with the goal of encouraging customers to instrument everything instead of deciding what to monitor and what to leave out to control cost. “What we’re announcing is a completely reimagined platform. We’re simplifying our products from 11 to three, and we eliminate those barriers to standardizing on a single source of truth,” New Relic founder and CEO Lew Cirne told TechCrunch.

The way the company can afford to make this switch is by exposing the underlying telemetry database that it created to run its own products. By taking advantage of this database to track all of your APM, tracing and metric data all in one place, Cirne says they can control costs much better and pass those savings onto customers, whose bills should be much smaller based on this new pricing model, he said.

“Prior to this, there has not been any technology that’s good at gathering all of those data types into a single database, what we would call a telemetry database. And we actually created one ourselves and it’s the backbone of all of our products. [Up until now], we haven’t really exposed it to our customers, so that they can put all their data into it,” he said.

New Relic Telemetry Data. Image Credit: New Relic

The company is distilling the product set into three main categories. The first is the Telemetry Data Platform, which offers a single way to gather any events, logs or traces, whether from their agents or someone else’s or even open-source monitoring tools like Prometheus.

The second product is called Full-stack Observability. This includes all of their previous products, which were sold separately, such as APM, mobility, infrastructure and logging. Finally they are offering an intelligence layer called New Relic AI.

Cirne says by simplifying the product set and changing the way they bill, it will save customers money through the efficiencies they have uncovered. In practice, he says, pricing will consist of a combination of users and data, but he believes their approach will result in much lower bills and more cost certainty for customers.

“It’ll vary by customer, so this is just a rough estimate, but imagine that the typical New Relic bill under this model will be a 70% per user charge and 30% data charge, roughly, but so if that’s the case, and if you look at our competitors, 100% of the bill is data,” he said.

The new approach is available starting today. Companies can try it with a 100 GB single-user account.

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Buildots raises $16M to bring computer vision to construction management

Buildots, a Tel Aviv and London-based startup that is using computer vision to modernize the construction management industry, today announced that it has raised $16 million in total funding. This includes a $3 million seed round that was previously unreported and a $13 million Series A round, both led by TLV Partners. Other investors include Innogy Ventures, Tidhar Construction Group, Ziv Aviram (co-founder of Mobileye & OrCam), Magma Ventures head Zvika Limon, serial entrepreneurs Benny Schnaider and  Avigdor Willenz, as well as Tidhar chairman Gil Geva.

The idea behind Buildots is pretty straightforward. The team is using hardhat-mounted 360-degree cameras to allow project managers at construction sites to get an overview of the state of a project and whether it remains on schedule. The company’s software creates a digital twin of the construction site, using the architectural plans and schedule as its basis, and then uses computer vision to compare what the plans say to the reality that its tools are seeing. With this, Buildots can immediately detect when there’s a power outlet missing in a room or whether there’s a sink that still needs to be installed in a kitchen, for example.

“Buildots have been able to solve a challenge that for many seemed unconquerable, delivering huge potential for changing the way we complete our projects,” said Tidhar’s Geva in a statement. “The combination of an ambitious vision, great team and strong execution abilities quickly led us from being a customer to joining as an investor to take part in their journey.”

The company was co-founded in 2018 by Roy Danon, Aviv Leibovici and Yakir Sundry. Like so many Israeli startups, the founders met during their time in the Israeli Defense Forces, where they graduated from the Talpiot unit.

“At some point, like many of our friends, we had the urge to do something together — to build a company, to start something from scratch,” said Danon, the company’s CEO. “For us, we like getting our hands dirty. We saw most of our friends going into the most standard industries like cloud and cyber and storage and things that obviously people like us feel more comfortable in, but for some reason we had like a bug that said, ‘we want to do something that is a bit harder, that has a bigger impact on the world.’ ”

So the team started looking into how it could bring technology to traditional industries like agriculture, finance and medicine, but then settled upon construction thanks to a chance meeting with a construction company. For the first six months, the team mostly did research in both Israel and London to understand where it could provide value.

Danon argues that the construction industry is essentially a manufacturing industry, but with very outdated control and process management systems that still often relies on Excel to track progress.

Image Credits: Buildots

Construction sites obviously pose their own problems. There’s often no Wi-Fi, for example, so contractors generally still have to upload their videos manually to Buildots’ servers. They are also three dimensional, so the team had to develop systems to understand on what floor a video was taken, for example, and for large indoor spaces, GPS won’t work either.

The teams tells me that before the COVID-19 lockdowns, it was mostly focused on Israel and the U.K., but the pandemic actually accelerated its push into other geographies. It just started work on a large project in Poland and is scheduled to work on another one in Japan next month.

Because the construction industry is very project-driven, sales often start with getting one project manager on board. That project manager also usually owns the budget for the project, so they can often also sign the check, Danon noted. And once that works out, then the general contractor often wants to talk to the company about a larger enterprise deal.

As for the funding, the company’s Series A round came together just before the lockdowns started. The company managed to bring together an interesting mix of investors from both the construction and technology industries.

Now, the plan is to scale the company, which currently has 35 employees, and figure out even more ways to use the data the service collects and make it useful for its users. “We have a long journey to turn all the data we have into supporting all the workflows on a construction site,” said Danon. “There are so many more things to do and so many more roles to support.”

Image Credits: Buildots

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Microsoft’s new Flight Simulator is a beautiful work in progress

For the last two weeks, I’ve been flying around the world in a preview of Microsoft’s new Flight Simulator. Without a doubt, it’s the most beautiful flight simulator yet, and it’ll make you want to fly low and slow over your favorite cities because — if you pick the right one — every street and house will be there in more detail than you’ve ever seen in a game. Weather effects, day and night cycles, plane models — it all looks amazing. You can’t start it up and not fawn over the graphics.

But the new Flight Simulator is also still very much a work in progress, too, even just a few weeks before the scheduled launch date on August 18. It’s officially still in beta, so there’s still time to fix at least some of the issues I list below. Because Microsoft and Asobo Studios, which was responsible for the development of the simulator, are using Microsoft’s AI tech in Azure to automatically generate much of the scenery based on Microsoft’s Bing Maps data, you’ll find a lot of weirdness in the world. There are taxiway lights in the middle of runways, giant hangars and crew buses at small private fields, cars randomly driving across airports, giant trees growing everywhere (while palms often look like giant sticks), bridges that are either under water or big blocks of black over a river — and there are a lot of sunken boats, too.

When the system works well, it’s absolutely amazing. Cities like Barcelona, Berlin, San Francisco, Seattle, New York and others that are rendered using Microsoft’s photogrammetry method look great — including and maybe especially at night.

Image Credits: Microsoft

The rendering engine on my i7-9700K with an Nvidia 2070 Super graphics card never let the frame rate drop under 30 frames per second (which is perfectly fine for a flight simulator) and usually hovered well over 40, all with the graphics setting pushed up to the maximum and with a 2K resolution.

When things don’t work, though, the effect is stark because it’s so obvious. Some cities, like Las Vegas, look like they suffered some kind of catastrophe, as if the city was abandoned and nature took over (which in the case of the Vegas Strip doesn’t sound like such a bad thing, to be honest).

Image Credits: TechCrunch

Thankfully, all of this is something that Microsoft and Asobo can fix. They’ll just need to adjust their algorithms, and because a lot of the data is streamed, the updates should be virtually automatic. The fact that they haven’t done so yet is a bit of a surprise.

Image Credits: TechCrunch

Chances are you’ll want to fly over your house the day you get Flight Simulator. If you live in the right city (and the right part of that city), you’ll likely be lucky and actually see your house with its individual texture. But for some cities, including London, for example, the game only shows standard textures, and while Microsoft does a good job at matching the outlines of buildings in cities where it doesn’t do photogrammetry, it’s odd that London or Amsterdam aren’t on that list (though London apparently features a couple of wind turbines in the city center now), while Münster, Germany is.

Once you reach altitude, all of those problems obviously go away (or at least you won’t see them). But given the graphics, you’ll want to spend a lot of time at 2,000 feet or below.

Image Credits: TechCrunch

What really struck me in playing the game in its current state is how those graphical inconsistencies set the standard for the rest of the experience. The team says its focus is 100% on making the simulator as realistic as possible, but then the virtual air traffic control often doesn’t use standard phraseology, for example, or fails to hand you off to the right departure control when you leave a major airport. The airplane models look great and feel pretty close to real (at least the ones I’ve flown myself), but some currently show the wrong airspeed. Some planes use modern glass cockpits with the Garmin 1000 and G3X, but those still feel severely limited.

But let me be clear here. Despite all of this, even in its beta state, Flight Simulator is a technical marvel and it will only get better over time.

Image Credits: TechCrunch

Let’s walk through the user experience a bit. The install on PC (the Xbox version will come at some point in the future) is a process that downloads a good 90GB so that you can play offline as well. The install process asks you if you are okay with streaming data, too, and that can quickly add up. After reinstalling the game and doing a few flights for screenshots, the game had downloaded about 10GB already — it adds up quickly and is something you should be aware of if you’re on a metered connection.

Once past the long install, you’ll be greeted by a menu screen that lets you start a new flight, go for one of the landing challenges or other activities the team has set up (they are really proud of their Courchevel scenery) and go through the games’ flight training program.

Image Credits: Microsoft

That training section walks you through eight activities that will help you get the basics of flying a Cessna 152. Most take fewer than 10 minutes and you’ll get a bit of a de-brief after, but I’m not sure it’s enough to keep a novice from getting frustrated quickly (while more advanced players will just skip this section altogether anyway).

I mostly spent my time flying the small general aviation planes in the sim, but if you prefer a Boeing 747 or Airbus 320neo, you get that option, too, as well as some turboprops and business jets. I’ll spend some more time with those before the official launch. All of the planes are beautifully detailed inside and out and except for a few bugs, everything works as expected.

To actually start playing, you’ll head for the world map and choose where you want to start your flight. What’s nice here is that you can pick any spot on your map, not just airports. That makes it easy to start flying over a city, for example. As you zoom into the map, you can see airports and landmarks (where the landmarks are either real sights like Germany’s Neuschwanstein Castle or cities that have photogrammetry data). If a town doesn’t have photogrammetry data, it will not appear on the map.

As of now, the flight planning features are pretty basic. For visual flights, you can go direct or VOR to VOR, and that’s it. For IFR flights, you choose low or high-altitude airways. You can’t really adjust any of these, just accept what the simulator gives you. That’s not really how flight planning works (at the very least you would want to take the local weather into account), so it would be nice if you could customize your route a bit more. Microsoft partnered with NavBlue for airspace data, though the built-in maps don’t do much with this data and don’t even show you the vertical boundaries of the airspace you are in.

Image Credits: TechCrunch

It’s always hard to compare the plane models and how they react to the real thing. Best I can tell, at least the single-engine Cessnas that I’m familiar with mostly handle in the same way I would expect them to in reality. Rudder controls feel a bit overly sensitive by default, but that’s relatively easy to adjust. I only played with a HOTAS-style joystick and rudder setup. I wouldn’t recommend playing with a mouse and keyboard, but your mileage may vary.

Live traffic works well, but none of the general aviation traffic around my local airports seems to show up, even though Microsoft partner FlightAware shows it.

As for the real/AI traffic in general, the sim does a pretty good job managing that. In the beta, you won’t really see the liveries of any real airlines yet — at least for the most part — I spotted the occasional United plane in the latest builds. Given some of Microsoft’s own videos, more are coming soon. Except for the built-in models you can fly in the sim, Flight Simulator is still missing a library of other airplane models for AI traffic, though again, I would assume that’s in the works, too.

Image Credits: TechCrunch

We’re three weeks out from launch. I would expect the team to be able to fix many of these issues and we’ll revisit all of them for our final review. My frustration with the current state of the game is that it’s so often so close to perfect that when it falls short of that, it’s especially jarring because it yanks you out of the experience.

Don’t get me wrong, though, flying in FS2020 is already a great experience. Even when there’s no photogrammetry, cities and villages look great once you get over 3,000 feet or so. The weather and cloud simulation — in real time — beats any add-on for today’s flight simulators. Airports still need work, but having cars drive around and flaggers walking around planes that are pushing back help make the world feel more alive. Wind affects the waves on lakes and oceans (and windsocks on airports). This is truly a next-generation flight simulator.

Image Credits: Microsoft

Microsoft and Asobo have to walk a fine line between making Flight Simulator the sim that hardcore fans want and an accessible game that brings in new players. I’ve played every version of Flight Simulator since the 90s, so getting started took exactly zero time. My sense is that new players simply looking for a good time may feel a bit lost at first, despite Microsoft adding landing challenges and other more gamified elements to the sim. In a press briefing, the Asobo team regularly stressed that it aimed for realism over anything else — and I’m perfectly okay with that. We’ll have to see if that translates to being a fun experience for casual players, too.

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LA’s consumer goods rental service, Joymode, sells to the NYC retail investment firm, XRC Labs

After raising $15 million in financing from one of technology’s most successful global investment firms, the Los Angeles-based consumer goods rental company Joymode is selling itself to an early-stage retail investment firm out of New York, XRC Labs.

Joymode’s founder Joe Fernandez will continue on as an advisor to Joymode as the company moves to pivot its business to focus on retail partnerships.

The relationship with XRC Labs’ Pano Anthos began after a small pilot integration between Joymode and Walmart launched in late 2019. “[It] became obvious that we should go all in on retail partnerships,” according to Fernandez. And as the company cast about for partners to pursue the strategy, Anthos and his firm, XRC, kept being mentioned, Fernandez said.

The precise terms of the deal with XRC Labs were undisclosed, but Joymode will become a wholly owned business of XRC and could potentially return to market to raise additional funds from additional investors, according to Fernandez.

“We could never crack growth at the scale we needed,” said Fernandez of the company’s initial business. “From day one, my belief was Joymode was going to be huge or dead. We grew, but given the cost structure of our business it put a lot of pressure on the business to grow exponentially fast. Everyone loved the idea but the actual growth was slower than we needed it to be.”

Though Joymode wasn’t a success, Fernandez said he can’t fault his investors or his team. “We got to iterate through every possible idea we had. Literally every idea we had was exhausted… We failed and that’s a bummer, but we got a fair shot,” he said.

What remains of the company is an inventory management system on the back end and a service that will allow any retailer to get involved in the rental business going forward.

“Part of the thesis was that by making things available for rental, people would want to do more stuff,” said Fernandez, but what happened was that consumers needed additional reasons to use the company’s service, and there weren’t enough events to drive demand.

“I believe that the inventory management system we made was incredible and it will be a standard for retailers doing rentals going forward,” he said. 

 As the company turned to retailers, the rental option became a way to generate revenue through additional products. “All the accessories that made the event even better,” said Fernandez. “Add-ons, try before you buy, experiential things that are just much more complete in a retail environment.”

At Joymode, the problem was that the company was owning the inventory, which created a high fixed cost. “We never felt confident with the growth in LA to justify the expense of opening in another city,” Fernandez said. “If we had cracked user acquisition in LA we would have rolled it out in a bunch of places.”

Ultimately, Joymode members saved $50 million by using Joymode to rent products rather than buying them. In all, the company acquired 2,000 unique products — from beach and camping equipment to video games, virtual reality headsets to cooking appliances. On a given weekend, roughly 30,000 products would ship from the company’s warehouse to locations across Southern California.

At XRC Labs, a firm launched in 2015 to support the consumer goods and brand space, Joymode will complement an accelerator that raises between $6 million and $9 million every two years and manages a growth fund that could reach $50 million in assets under management.

For Anthos, the best corollary to Joymode’s business could be the rental business at Home Depot. “Home Depot’s rental business is over $1 billion per year,” Anthos said. “There’s going to be this enormous component of our society and for them renting will be not just a more sustainable but reasonable option. They’re going to want to rent because they don’t want to own it.”

Joymode was backed by TenOneTen, Wonder, Struck Ventures, Homebrew and Naspers (now Prosus).

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Extra Crunch Live: Join our Q&A tomorrow at noon PDT with Y Combinator’s Geoff Ralston

From Airbnb to Zapier, and Coinbase to Instacart, many of the tech world’s most valuable companies spent their earliest days in Y Combinator’s accelerator program.

Steering the ship at Y Combinator today is its president, Geoff Ralston . We’re excited to share that Ralston will be joining us on Extra Crunch Live tomorrow at noon pacific.

Extra Crunch Live is our virtual speaker series, with each session packed with insight and guidance from the top investors, leaders and founders. This live Q&A is exclusive to Extra Crunch members, so be sure to sign up for a membership here.

Ralston took on the YC President role a little over a year ago shortly after Sam Altman stepped away to focus on OpenAI.

In the months since, Y Combinator has had to reimagine much about the way it operates; as the pandemic spread around the world, YC (like many organizations) has had to figure out how to work together while far apart. In the earliest weeks of the pandemic, this meant quickly shifting their otherwise in-person demo day online; later, it meant adapting the entire accelerator program to be completely remote.

While still relatively new to the president seat, Ralston is by no means new to YC. He joined the accelerator as a partner in 2012, and his edtech-focused accelerator Imagine K12 was fully merged into YC’s operations in 2016.

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Leverage AI to optimize customer service outcomes

Nitesh Dudhia
Contributor

Nitesh Dudhia is co-founder and CBO of Aikon Labs Pvt Ltd. Nitesh has worked on market opportunity identification, business planning and strategy formulation and execution for digital transformation.

As offices worldwide shift to remote work, our interactions with customers and colleagues have evolved in tandem. Professionals who once relied on face-to-face communication and firm handshakes must now close deals in a world where both are rare. Coworkers we once sat beside every day are now only available over Slack and Zoom, changing the nature of internal communication as well.

While this new reality presents a challenge, the advancement of key technologies allows us to not just adapt, but thrive. We are now on the precipice of the biggest revolution in workplace communication since the invention of the telephone.

It’s not enough to simply accept the new status quo, particularly as the overall economic climate remains tenuous. Artificial intelligence has much to offer in improving the way we speak to one another in the social distance era, and has already seen wide adoption in certain areas. Much of this algorithmic work has gone on behind the scenes of our most-used apps, such as Google Meet’s noise-canceling technology, which uses an AI to mute certain extraneous sounds on video calls. Other advances work in real-time right before our eyes — like Zoom’s myriad virtual backgrounds, or the automatic transcription and translation technology built into most video conferencing apps.

This kind of technology has helped employees realize that, despite the unprecedented shift to remote work, digital conversations do not just strive to recreate the in-person experience — rather, they can improve upon the way we communicate entirely.

It’s estimated that 65% of the workforce will be working remotely within the next five years. With a more hands-on approach to AI — that is, using the technology to actually augment everyday communications — workers can gain insight into concepts, workflows and ideas that would otherwise go unnoticed.

Your customer service experience

Roughly 55% of the data companies collect falls into the category of “dark data”: information that goes completely unused, kept on an internal server until it’s eventually wiped. Any company with a customer service department is invariably growing their stock of dark data with every chat log, email exchange and recorded call.

When a customer phones in with a query or complaint, they’re told early on that their call “may be recorded for quality assurance purposes.” Given how cheap data storage has become, there’s no “maybe” about it. The question is what to do with this data.

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Investment in AI startups slips to three-year low

The fortunes of startups that leverage artificial intelligence have soared dramatically in recent years.

These AI-powered startups have seen quarterly investment totals rise from a few hundred rounds and a few billion dollars each quarter to 1,245 rounds and $17.3 billion in the second and third quarters of 2019, according to data from CB Insights. The rise in dollars chasing AI startups has been huge, demonstrating strong venture capital interest in the cohort.

But in recent quarters, the trend has slowed as VC deals for AI-powered startups fell off.


The Exchange explores startups, markets and money. You can read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.


A new report from the business-data company looking at the second quarter of venture capital results for global AI startups shows historically strong but declining investing rates for the upstart firms. During a pandemic and widespread recession, this is not a complete surprise; other areas of VC investment have also fallen in recent quarters. This is The Exchange’s second look at quarterly data in the startup category, something partially spurred by our interest in the economics of the startups that make up the group.

The scale of decline is notable, however, as is the national breakdown of VC investment into AI. (The United States is doing better than you probably guessed, if you have only listened to politicians lately.)

Let’s unpack the latest results, determine how investing patterns have changed by stage and examine how different countries compare when it comes to deal and dollar volume for AI-powered startups.

Global declines, US dominance

In the second quarter of 2020, global investment into AI startups fell to 458 deals worth $7.2 billion. According to the CB Insights dataset, the deal volume is the lowest for 12 quarters, or since Q2 2017 when 387 investments into AI startups were worth $4.7 billion.

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