Tech
A new a16z report looks at which AI companies startups are actually paying for
On Thursday, Andreessen Horowitz released its first AI Spending Report in partnership with the fintech firm Mercury. Using transaction data from Mercury, the report analyzes the top 50 AI-native application layer companies that startups are spending money on, similar to the previously published Top 100 Gen AI Consumer Apps.
A16z partners Olivia Mooe and Seema Amble say the data shows companies are still adopting a range of different AI products for certain tasks — and new apps are rising and falling very quickly.
“There’s a proliferation of tools,” Amble said. “It hasn’t just coalesced around one or two in each category.”
The report also shows a lot of spending on “human augmentors” or “copilots” that can help boost productivity among the workforce, suggesting startups aren’t ready to fully shift into agentic workflows.
“As computer use becomes more of a mode and there’s more of the ability for there to be end-to-end agentic flows built, I think that shift will happen, where we’ll see fewer copilots and more end-to-end agent tools,” Amble said. “Especially as people are really eager to give them a try.”

Unsurprisingly, the top of the list was dominated by major labs, with OpenAI taking the top slot and Anthropic following up at number 2. Vibe-coding tools were also well represented, with Replit at number 3, Lovable at number 18. Cursor landed at number 6, and Emergent at number 48. Cognition, which operates more enterprise-oriented coding tools like Devin and Windsurf, was at number 34.
When a16z produced a similar list for consumer habits, Lovable ranked much higher than Replit on pure traffic alone because a lot of people were using it to create projects. But startups are not spending as much money on Lovable as they are on Replit, in part because of the lack of enterprise features. But the variety of companies on the list seems to suggest there’s room for plenty of different companies at once.
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“It’s an open question going forward on vibe coding,” Moore said. “Does the space start to consolidate, and one place becomes the best platform to vibe code? Or is it the case where there’ll be four or five more vibe coding companies that are really big businesses for different types of applications? We don’t have the answer to that yet.”
Moore was also surprised to see startups adopting consumer-oriented tools like CapCut and Midjourney.
“We’re seeing that a lot of these [consumer] companies are getting yanked into enterprise faster and faster because they make such delightful consumer tools that then people adopt and use as individuals and bring into their teams and workplaces,” Moore said.
Horizontal applications overall made up at least 60% of the names on the list, and 40% consisted of vertical applications. The most popular vertical software companies fell into three buckets: sales, recruiting, and customer service. But the report also found AI making progress in many sectors that previous generations of startups had struggled to crack.
“What maybe previously would have been, like, service firms or consultancies are now software companies in the age of AI,” Moore said.
Amble gave Crosby Legal as an example, which can quickly review a legal contract for a user, replacing what at one point would have been a meeting with an in-house general counsel, rummaging through thoughts and research. She said right now, most of the tools are used to aid employees (like a co-pilot) in making decisions faster, rather than replacing entire workforces and talent suits with automated workers (end-to-end agents).

“As the tech gets better, and we’re actually able to build out full agent co-workers, you’ll see that mix shift more toward end-to-end agents and away from co-pilots,” she said, later adding that AI tools can do much more work, like outreach, faster than a human can.
There were also a lot of note takers on the list, such as Otter.ai, Retell AI, and Habbyscribe — with no single option dominating. This is what Amble meant when she said there isn’t one product yet that has dominated the market; rather, startups are still picking “their own flavor” to see what tools they like best. This is also good for employees, who, with so many options, can pick what applications help them work best, rather than using a one-size-fits-all product “pushed down from the top,” Amble said.

The last big find in the report was the increasing intertwining of consumer and enterprise businesses. People are bringing the personal applications they use at home to work, and people who have started companies are using their favorite personal applications to help build their businesses. Before, there would have been a delineation between the two: a set stack for what to use while building a startup.
Amble and Moore cited Canva as an example: It’s a popular consumer app that also has a sizable enterprise audience. It took years for Canva to even add an enterprise plan. But as individual and enterprise use cases become harder to distinguish, companies are more willing to blend the two.
“Your TAM [total addressable market] is no longer one or the other, but you can sell into both,” she continued. She said companies building these products might also “professionalize” faster, meaning building out enterprise teams, like go-to-market, sales, and support, so they can start selling and accruing enterprise revenue sooner, rather than depending on individual consumers.
Moore and Amble are expecting the list to change quickly in the coming years. Older companies are now launching AI features to stay relevant and accessible, while new entrants arrive with new ideas.
“Legacy players, legacy almost means, ‘what was 12 months ago,” Amble said. “If we pull this again in 12 months, will the same note-taking apps even be on there? Or will there be a whole new set?”
Tech
Waymo starts autonomous testing in Philadelphia
Waymo is adding another four cities to its growing list of robotaxi rollouts. The company announced Wednesday it has begun testing its autonomous vehicles (with a safety monitor) in Philadelphia, and that it will start manual driving to collect data in Baltimore, St. Louis, and Pittsburgh.
Waymo did not offer a timeline for when it plans to launch commercial services in those locations, nor do we know whether the Alphabet-owned company will partner with other companies to operate robotaxis in each one. That has been the move in cities like Atlanta and Austin, for example, where Waymo has partnered with Uber to advance its robotaxi rollout.
But the new locations join a list of over 20 cities where the company is either offering rides, prepping a commercial launch, or testing. Waymo is also now offering rides on freeways in Los Angeles, Phoenix, and the San Francisco Bay Area. The company plans to be doing one million rides per week by the end of 2026.
Waymo has done all this while claiming to be operating at a level five times safer than humans, according to data the company recently released.
But the expansion has not come without its issues. The National Highway Traffic Safety Administration is investigating how the company’s vehicles operate near school buses, after a Waymo was filmed driving around a stopped bus in Atlanta in September.
This week, Austin news outlet KXAN published a report showing Waymo’s vehicles have driven past school buses that were in the process of unloading or loading children multiple times — including after Waymo claims to have shipped software updates to address the problem.
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Tech
Spotify Wrapped 2025 adds its first multiplayer feature with ‘Wrapped Party’
Spotify Wrapped is back. After last year’s widely criticized flop that included an AI podcast as its highlight, the streamer’s highly anticipated annual review feature has returned to its roots. This year, Spotify is doubling down on what it knows works best: deep dives into your streaming data, creative experiences, messages from favorite artists, and other social features.
The company claims that Wrapped 2025 is its biggest, as it’s introducing nearly a dozen new features in addition to its old standbys, like top songs and artists. Plus, it’s offering more visibility into users’ data than in years past. For the first time, Spotify Wrapped is adding a live multiplayer feature to compare your listening data with friends.
Wrapped Party, Wrapped’s first live interactive experience, allows you to invite up to nine friends to compare listening stats.

Also new this year, your Top Songs Playlist will include the play counts for each of the top songs, so you can actually see how much time you spent with your favorite tracks.
Other standout features this year include an interactive Top Song Quiz, a Listening Age feature, and Wrapped Clubs, which match you to one of six unique listening styles.
The company believes these additions will not only bring back the personalized, engaging experience that users have long expected from Wrapped, but will take it a step further by making it more interactive than before.
In the Top Song Quiz, for instance, you can try to guess which top song soundtracked your year before seeing the results.
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The new interactive Wrapped Party feature isn’t just about comparing the personal streaming data you’ve already received to your friends’ data, as that’s something people already do on social media. Instead, the feature presents unique data stories for your group, like who’s the “most obsessed fan,” the “early bird,” the most “picky listener,” or even something as nice as the “dinner table explainer,” meaning the person who listens to the most news podcasts.

Spotify says these awards update dynamically every time you join a Wrapped Party, so no two sessions are ever the same — even if you run through them again with the same group of friends.
The new Wrapped Clubs, meanwhile, will group you into one of half a dozen listening styles, like the “Soft Hearts Club,” the “Club Serotonin,” the “Full Charge Crew,” the “Cosmic Stereo Club,” and others. You’ll also receive a role in the club based on your listening data. You might be a club leader if your listening choices strongly matches the club’s values, a scout if you’re always seeking out new releases, or an archivist if you listen to music from past eras.

Another feature, Listening Age, compares your 2025 music listening to others in your age group. To calculate your age, the feature considers the release years of the tracks you listen to most. From there, it identifies the five-year span of music that you engaged with more than other listeners your age.

As in prior years, you’ll see your top songs, top artists, top genres, and, for the first time, top albums. If you engaged with audiobooks and podcasts, you’ll see metrics for those as well. Artists, writers, and podcasters will have their own version of Wrapped as before. And top fans will again receive video messages from their favorite artists, podcasters, and, now, authors.
You’ll also receive a playlist of your top songs of the year, as before.

What you won’t find in this year’s Wrapped is any feature that advertises it was made with AI.
In a press briefing on Tuesday, Spotify’s Senior Director of Global Marketing, Matt Luhks, admitted the company received a “lot of feedback” about its 2024 AI-focused Wrapped experience, saying it was a “mix of positive and ‘more constructive feedback,’” despite the feature driving more engagement than prior years.
“We take all of that in. We use that as information, insights, [and] inspiration for how we approached Wrapped this year,” he said in a press event ahead of today’s launch.
“What our users tell us about Wrapped means a lot to us, so it was really informative in how we approached Wrapped this year. And what we tried to build was the most creative, most innovative, most engaging Wrapped ever,” he added, setting a high bar for the 2025 edition of the now 11-year-old annual year-in-review feature.
“We’re the original and, we believe, still the best,” Luhks said.

Still, AI was a part of the Wrapped experience. Though the company claims the overall experience was not made with AI, it does leverage a LLM (large language model) to add a storytelling layer to Wrapped’s facts and figures, and natural language summaries in other parts of its experience, looking back on your data.
Spotify’s attempt to fix Wrapped after a notable stumble comes as the streamer faces increased competition from Apple, Amazon, YouTube, and others, which have all launched their own annual review features, inspired by Wrapped.
“Everyone seems to have their own version of Wrapped. Now, there’s a lot of reviews and replays and rewinds out there, but we believe that Wrapped still sets the bar for these year-end recaps,” Luhks said.
Along with the consumer experience, Spotify shared its top artists, songs, albums, podcasts, and audiobooks for the year, with top winners that included, respectively, Bad Bunny (top song and album), Joe Rogan (“The Joe Rogan Experience” podcast), and Rebeca Yarros (author of “Fourth Wing”).
Tech
Nothing looks to its community to raise $5M, wants to be ‘IPO-ready’ in 3 years
Hardware maker Nothing is letting its user base buy its stock as part of a new community investment round of $5 million. The new round, which opens on December 10, will enable consumers to buy the company’s shares at its Series C valuation of $1.3 billion.
The company said it has so far raised $8 million in total from over 8,000 people across two previous community investment rounds. It held its first community funding event in 2021, aiming to raise $1.5 million.
“This isn’t about raising capital, it’s about giving our community/fans a chance to invest while we’re private and join us on the journey,” a spokesperson for Nothing told TechCrunch.
Community investors have a rotating seat on the company’s board, but it is unclear what else they get for investing in the company through such rounds.
Nothing raised $200 million in its Series C back in September from investors including Tiger Global, GV, Highland Europe, EQT, Latitude, I2BF and Tapestry. The company has raised $450 million to date.
The community round comes as Nothing makes changes to its corporate structure as it tries to increase its share of a smartphone market dominated by giants like Samsung and Apple. The company is spinning off its budget CMF brand, and plans to explore AI-centric devices while it keeps building smartphones and audio products. And Nothing claims it crossed $1 billion in cumulative revenue this year, up 150% from 2024.
The startup is working to be “IPO-ready” in three years, CEO Carl Pei told TechCrunch in an email. “The timing will depend on market conditions and what makes sense for the business at that point in time,” he said.
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“What’s important is that we’re already operating with that discipline now. We’re building the systems, the governance, the financial discipline that a public company needs. It forces us to think longer-term and make smarter decisions that prioritise sustainable growth,” Pei added.
It’s not clear if Nothing aims to raise another round before an IPO. When asked about its fundraising plans, a Nothing spokesperson said the company is not thinking about raising capital immediately, but it wouldn’t be averse to those conversations.
Those interested in investing in the community round can use platforms like Wefunder and Crowdcube to participate.
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