Upward and onward

The future is very much yet to be written about vertical farming. In many ways, the technology presents hope in the midst of rising food safety concerns, aging populations and potential environmental collapse. It’s also an intensely hard row to hoe, as it were. Early companies in the space are going to be the ones focused on driving down unit economics (hopefully) to a point where the technology makes sense from a price perspective.

But sometimes being early to a party means you’re among the first to leave. Last January, we covered what looked to be an important next step for Upward Farms, as the company announced plans to open a 250,000-square-foot farm in Northeastern, Pennsylvania early this year. The Brooklyn-based firm recently announced, however, that it has closed up shop.

“We found that vertical farming is almost infinitely complex — as we tackled challenges, new ones emerged,” founders Jason Green, Ben Silverman and Matt La Rosa said in an open letter. “Our team faced these challenges head on, humbly asking ourselves, ‘If not me, who, and if not now, when?’ ”

Even in a thriving market, building this stuff is intensely difficult. After three years of economic and other challenges, one imagines that it becomes even harder to convince potential backers to stick out what is ultimately a long runway.

The startup is closing up its decade-long project, but the founders point at some potential silver lining. “While Upward Farms is closing its doors,” they note, “a small portion of our team will continue working to unleash the magic of the microbiome. In the coming months, we’ll have more to share.”

There are still plenty of big names in the space, including Bowery and AeroFarms. It probably shouldn’t be a big surprise that the herd is going to thin for a bit, until the path to success gets clearer. Meantime, perhaps the Upward team has valuable innovations it can share with a potential industry partner.

Upward and onward by Brian Heater originally published on TechCrunch


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After initially defying the global slowdown, African startups’ first quarter venture results fall

The recent, and now past, venture capital boom was a global affair. While traditionally busy markets like North America and Europe benefited from the explosion in capital, other regions with more nascent startup scenes also saw big gains in their ability to attract funding. Southeast Asia is a frequently noted example of the phenomenon. Latin American as well.


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Africa also saw its venture capital totals soar during the last startup gold rush. In recent quarters, much like other startup regions around the world, African venture results have declined. In fact, March posted what was described as “the worst month in 2.5 years” for Africa, including “the first time the monthly amount of funding raised by start-ups in Africa dipped below the $100 million mark since 2020,” by The Big Deal, a publication focused on the venture and startup market on the continent.

Clearly, the quarter was a step backward. Naturally we wanted to better understand what was going on in one of the most exciting venture markets in recent years. So, this morning, The Exchange has collected two other data sources for us to chew on.

We know that deals are still getting done in Africa. TechCrunch recently covered a $4 million round for Shuttlers, which we described as a “Nigerian shared mobility company.” Chargel, based in Senegal, recently raised $2.5 million. But TechCrunch coverage of individual rounds is by definition partial when compared to all activity, so we’ll need to grapple with aggregates to ascertain a clearer image.

From a lower ceiling in terms of dollars raised, African startups’ slowing fundraising pace is bringing its quarterly results under the billion-dollar mark. That’s thin support for such a large, geographically diverse and increasingly digitally connected area.

Let’s talk venture results, unique issues to the African startup scene, and look ahead to see if we can spy any good news on the horizon.

After initially defying the global slowdown, African startups’ first quarter venture results fall by Anna Heim originally published on TechCrunch


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Microsoft makes its AI-powered Designer tool available in preview

Today, Microsoft Designer, Microsoft’s AI-powered design tool, launched in public preview with an expanded set of features.

Announced in October, Designer is a Canva-like web app that can generate designs for presentations, posters, digital postcards, invitations, graphics and more to share on social media and other channels. It leverages user-created content and DALL-E 2, OpenAI’s text-to-image AI, to ideate designs, with drop-downs and text boxes for further customization and personalization.

“Since October, the AI models have steadily improved, and we’ve worked to weave these powerful capabilities throughout the Designer canvas in even more delightful ways while keeping you in control,” Bryan Rognier, GM at Microsoft’s 365 Consumer division, wrote in a blog post published today.

Now Designer can generate written captions and hashtags relevant for social media posts, offering several suggestions users can choose from. It can also create animated visuals, complete with backgrounds and text transitions, powered by AI.

Microsoft Designer

New features coming to Microsoft’s AI-powered Designer tool. Image Credits: Microsoft

In the future, Designer will gain additional editing features, Microsoft says, including the ability to place an object in a specific spot in a graphic and automatically fill in the rest of a picture. Forthcoming “erase” and “replace background” options, meanwhile, will let users brush over objects, people or backdrops they didn’t intend to be in a graphic.

Designer will remain free during the preview period, Microsoft says — it’s available via the Designer website and in Microsoft’s Edge browser through the sidebar. Once the Designer app is generally available, it’ll be included in Microsoft 365 Personal and Family subscriptions and have “some” functionality free to use for non-subscribers, though Microsoft didn’t elaborate.

Addressing some of the legal questions that’ve sprung up recently around AI-powered image-generation systems, Microsoft says that users will have “full” usage rights to commercialize the images they create with Designer and Image Creator. It’s unclear whether that might change in the future, though, given the ongoing court battles involving OpenAI and other startups commercializing generative AI tools.

Microsoft makes its AI-powered Designer tool available in preview by Kyle Wiggers originally published on TechCrunch


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Pinterest announces multi-year ads partnership with Amazon alongside earnings beat

Pinterest today announced a multi-year strategic ad partnership with Amazon aimed at bringing more brands and relevant products to its platform. The new deal will make the e-commerce giant Pinterest’s first-ever partner on third-party ads, the company said in a blog post shared alongside the company’s first-quarter earnings beat.

The partnership is a step in a new direction for the image sharing and social media site, which has been working to adjust to consumers’ changing interests around product discovery in recent years. As demand for video platforms like TikTok and Reels grew, Pinterest’s image pinboard began to feel dated, leading it to launch its video-first Idea Pins and increase its investment in creator content.

But some of those creator efforts were recently wound down, ahead of Pinterest’s last quarter miss on revenue where the company warned also of low first-quarter sales, sending its shares down.

By comparison, Amazon’s digital ads unit in the same quarter did well, jumping 19% to $11.6 billion.

Like other tech companies, Pinterest has been struggling with the macroeconomic forces impacting its business, but promised it was working to adapt to the changing environment. The company also laid off 150 employees in February, as it tried to reduce expenses.

While Pinterest has for years worked to connect product inspiration to purchases, the Amazon ads partnership could potentially offer consumers a more seamless buying experience. Unlike on some e-commerce websites, Amazon shoppers may not have to fiddle with filling out forms, as most have their payment information already on file with the company, leading to faster checkouts.

When users encounter an Amazon ad on Pinterest, they’ll be taken directly to Amazon to make the purchase, Pinterest says.

“Over 463 million people come to Pinterest each month to create a life they love. Brands and products are a critical piece of this journey, enabling Pinners to move easily from inspiration to action and advertisers to realize value in connecting with users with high commercial intent,” Pinterest noted in its blog post. “Our partnership with Amazon will allow us to scale these efforts in meaningful ways,” it said.

The company noted the implementation of the Amazon ads integrations will take place over multiple quarters, starting later this year. Pinterest can’t yet say where the ads will appear to end users and it’s not making any near-term forecasts related to revenue impacts, noting it won’t see meaningful impact until next year.

“Amazon Ads is delighted to partner with Pinterest and make it even easier for customers to discover and buy relevant products through shoppable content, while also providing differentiated value for brands,” add Amazon SVP Paul Kotas, in a statement.

Pinterest beat on Q1 revenue and earnings, with revenue up 5% year over year to $603 million, ahead of $598 million expected, and adjusted EPS of $0.08, vs $0.02 expected. Global monthly active users were up 7% year over year to 463 million. The company also reported a GAAP net loss of $209 million, or 31 cents per share, up from 1 cent a share in the year-ago period.

Despite the earnings beat, Pinterest stock dropped 6% on higher Q2 costs.

more to come

 

Pinterest announces multi-year ads partnership with Amazon alongside earnings beat by Sarah Perez originally published on TechCrunch


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YouTube Music officially rolls out podcasts for listeners in the US

YouTube Music is officially adding podcasts to its platform in the United States on Android, iOS and the web. The rollout comes a few months after YouTube podcasting head Kai Chuk revealed that podcasts would be added to YouTube Music soon.

The update allows users watching podcasts on the main app to continue listening to them on YouTube Music. The company notes that all users call listen to podcasts on-demand, offline, in the background, while casting and seamlessly switch between audio-video versions on YouTube Music.

“This podcast listening experience is different from our music listening experience where you need a Premium or Music Premium subscription to enjoy some of these features,” the company wrote in a blog post. “This new podcast listening experience complements the podcast video experience on YouTube.”

Podcasts in YouTube Music will be available regardless of whether you have a YouTube Premium subscription. YouTube even notes that paying customers may encounter host-read endorsements or sponsorship messages when listening to podcasts on YouTube Music.

YouTube Music homepage with podcasts

Image Credits: YouTube

YouTube is rolling out the update to all of its listeners in the United States gradually, which means not everyone may see it just yet. The company said it plans to bring podcasts to YouTube Music to users outside of the United States soon, but didn’t provide any specific launch details.

The YouTube Music Home tab now includes a new “Podcasts” tab that takes you to a dedicated feed, which will show you your favorite podcasts and recommended episodes.

YouTube is advising creators that if their podcast is audio-only, they should consider uploading a video with a static image, or use audiograms or other dynamic video formats. The company notes that it will soon offer creators the option to directly upload their audio podcasts via RSS feeds to both YouTube and YouTube Music.

According to previous reports, YouTube isn’t looking to sign exclusive deals with podcasters, which has been a key strategy at Spotify. YouTube instead seems to be focused on melding the experience of listening to podcasts on video and audio.

YouTube Music officially rolls out podcasts for listeners in the US by Aisha Malik originally published on TechCrunch


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Replit, the web-based IDE developing a GitHub Copilot competitor, raises $100M

Investors continue to pump money into generative AI tech. Case in point, Replit, an IDE startup developing a code-generating AI-powered tool called Ghostwriter, this week raised nearly $100 million ($97.4 million) at a $1.16 billion post-money valuation.

Andreessen Horowitz led the round — a Series B extension — with participation from Khosla Ventures, Coatue, SV Angel, Y Combinator, Bloomberg Beta, Naval Ravikant, ARK Ventures and Hamilton Helmer.

“We are relentless in our mission to empower a billion software developers,” Replit founder and CEO Amjad Masad said in a statement, adding that the new funds — which bring Replit’s total raised to over $200 million — will be put toward further developing the core product experience, expanding Replit’s cloud services and “driving innovation” in AI.

“AI has already brought that future closer,” Masad continued. “We look forward to expanding our offerings for professional developers.”

Based in San Francisco, Replit was co-founded by programmers Amjad Masad, Faris Masad and designer Haya Odeh in 2016. Before creating Replit, Masad worked in engineering roles at Yahoo and Facebook, where he built software development tooling.

Replit

Replit offers a web-based IDE for software development.

Replit offers an online, collaborative IDE that supports a range of programming languages, including JavaScript, Python, Go and C++. With Replit, users can share a workspace with one or many users and see real-time edits across files, message each other and debug code together. Beyond that, users can share projects, ask for help, learn from tutorials and use templates.

But perhaps its headlining feature is Ghostwriter, a suite of features powered by an AI model trained on publicly available code. Ghostwriter — much like GitHub’s Copilot — can make suggestions and explain code, considering what users type and other context from their accounts, like the programming languages they’re using.

Ghostwriter appears to be the driver behind Replit’s recent explosive growth, leading to a partnership with Google Cloud and a user base eclipsing 22 million developers. But like all generative AI tools, it comes with risks — and potentially legal consequences that have yet to fully play out in the courts.

Microsoft, GitHub and OpenAI are being sued in a class action lawsuit that accuses them of violating copyright law by allowing Copilot to regurgitate sections of licensed code without providing credit. Liability aside, some legal experts have suggested that AI like Copilot could put companies at risk if they were to unwittingly incorporate copyrighted suggestions from the tool into their production software.

It’s unclear whether Ghostwriter, too, was trained on licensed or copyrighted code. But Replit does note that the code Ghostwriter suggests might contain “incorrect, offensive or otherwise inappropriate” strings.

That includes insecure code. According to a recent study out of Stanford, software engineers who use code-generating AI systems are more likely to cause security vulnerabilities in the apps they develop. While the study didn’t look at Replit specifically, it stands to reason that developers who use it would fall victim to the same.

Replit has its work cut out for it, that’s all to say.

Replit, the web-based IDE developing a GitHub Copilot competitor, raises $100M by Kyle Wiggers originally published on TechCrunch


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Bipartisan Senate bill would ban social media algorithms for minors

In a bipartisan effort to “protect kids from harm,” an unlikely cohort of senators introduced a bill that would restrict minors’ access to social media, as well as ban companies from using algorithms to recommend content to minors. 

Senators Brian Schatz (D-Hawaii), Chris Murphy (D-Conn), Katie Britt (R-Ala) and Tom Cotton (R-Ark) introduced the Protecting Kids on Social Media Act on Wednesday. The bill would set a minimum age of 13 to use social media sites, and would require parental consent and age verification for users under 18. 

“The growing evidence is clear: social media is making kids more depressed and wreaking havoc on their mental health. While kids are suffering, social media companies are profiting. This needs to stop,” Schatz said in a press release. “Our bill will help us stop the growing social media health crisis among kids by setting a minimum age and preventing companies from using algorithms to automatically feed them addictive content based on their personal information.”

While some social media companies, like TikTok and YouTube, have launched kid-friendly versions of their platforms with content limits and parental controls, age verification is largely based on an honor system. 

If the bill is signed into law, social media companies will be forbidden from using the “personal data” of any user to recommend content “unless the platform knows or reasonably believes that the individual is age 18 or older according to the age verification process used by the platform,” the bill’s text reads. Advertising to minors will still be allowed, as long as it’s “solely based on context,” and isn’t “targeted or recommended based on the personal data” of the user.

The bill’s language doesn’t outline how algorithms will be regulated. A representative for Schatz did not immediately respond to request for comment. 

On Twitter, users have already raised concerns about the Protecting Kids on Social Media Act, and questioned whether the proposed regulations are even enforceable. 

“Broadly speaking I’d say this: yes, Big Tech companies are harming kids,” Evan Greer, director of the digital rights nonprofit Fight for the Future, said in a tweet responding to Murphy. “We stop that by forcing those companies to change their business practices, not by kicking kids off the internet or taking away kids rights.” 

Alejandra Caraballo, a civil rights attorney and clinical instructor at Harvard Law School’s Cyberlaw Clinic, also responded to Murphy’s tweet announcing the bill, in which he described prohibiting algorithms for kids. 

“With all due respect Senator, but that is a terribly misinformed statement about social media technology. You might as well try saying you’re banning javascript for teens,” she said. 

Murphy decried social media companies as “100% committed to addicting our children to their screens” in a press release. 

“The alarm bells about social media’s devastating impact on kids have been sounding for a long time, and yet time and time again, these companies have proven they care more about profit than preventing the well-documented harm they cause,” he said. “In particular, these algorithms are sending many down dangerous online rabbit holes, with little chance for parents to know what their kids are seeing online.”  

Most social media policies already require users to be at least 13 years old, but enforcement is flimsy at best. Minors can easily fly under the radar by submitting a fake date of birth and checking off a box attesting to their supposed age. The bill would require social media platforms to take “reasonable steps beyond merely requiring attestation,” instead employing “existing age verification technologies” to ensure that users are the age they claim to be. 

The bill’s language forbids companies from storing and using any information collected during the verification process “for any other purpose.” It instead proposes a free “Pilot Program,” regulated by the Secretary of Commerce, that would provide “secure digital identification credential to individuals who are citizens and lawful residents of the United States.” 

The Pilot Program is supposed to “meet or exceed the highest cybersecurity standards” of consumer products, and the bill promises that only anonymized aggregate data will be stored. 

This isn’t the first bipartisan effort to try and curb kids’ internet use. Last year, Senators Richard Blumenthal (D-Conn) and Marsha Blackburn (R-Tenn) introduced the Kids Online Safety Act (KOSA), which would require sites to provide more parental control tools and limit the content that users under 16 can access. Dozens of civil liberties organizations, including the American Civil Liberties Union, the Electronic Frontier Foundation, Fight for the Future and GLAAD, opposed the bill

The Protecting Kids on Social Media Act follows a larger nationwide push for age verification online. This year, Louisiana, Mississippi, Virginia and Utah passed laws requiring users to submit a government-issued ID in order to view porn sites. Eleven more states have proposed similar laws. But digital privacy advocates have expressed concerns over how age verification data is stored and used. 

In the joint letter opposing KOSA, civil liberties organizations warned against age verification requirements. 

“Age verification requirements may require users to provide platforms with personally identifiable information such as date of birth and government-issued identification documents, which can threaten users’ privacy, including through the risk of data breaches, and chill their willingness to access sensitive information online because they cannot do so anonymously,” the letter said. “Rather than age-gating privacy settings and safety tools to apply to only minors, Congress should focus on ensuring that all users, regardless of age, benefit from strong privacy protections by passing comprehensive privacy legislation.” 

Bipartisan Senate bill would ban social media algorithms for minors by Morgan Sung originally published on TechCrunch


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