Starbucks is putting on its first-ever North America Barista Championship, a tournament featuring 15k+ baristas crafting classic Starbucks menu items plus their own signature creation. To prove this isn’t just a clever move to pit baristas against each other rather than against the union-busting company for once, the winner will get a trip to Starbucks’ Costa Rican coffee farm. The overcaffeinated judges, we presume, will win a trip to a cardiologist.
In today’s email:
The other X: Alphabet’s “moonshot factory” takes a hit.
Compostable shoes: Will they find their footing?
Heaven forbid: Crypto backed by God, not gold.
Around the web: A dubious fragrance, a lost social media network, a fun opportunity, and more.
👇 Listen: Can 3D-printed shoes help the environment?
The Big Idea
Alphabet’s innovation lab will solve humanity’s biggest problems, if others help foot the bill
Cost-cutting measures at its parent company have upped pressure on Alphabet’s X innovation lab.
2024-01-23T00:00:00Z
Ben Berkley
In 2010, Google co-founders Larry Page and Sergey Brin established X as their company’s most innovative wing, dedicated to “moonshot thinking.”
Identify global problems affecting millions or billions of people.
Pursue radical ideas that may seem impossible today and make them possible.
Seeking out tech breakthroughs that could “redefine humanity” seems like a tall enough task, but in today’s world, X increasingly requires another: a clearer path to profitability.
The belt tightens
As parent company Alphabet slims down its ranks — nearing 180k employees, down from 190.7k last year — X, AKA The Moonshot Factory, is now also feeling the pinch. PerBloomberg:
X will lay off “dozens of employees.”
The lab is seeking outside funding from VCs and other investors to back X projects.
To be clear: the end goal for X projects has always been independence as strong, self-sustaining businesses.
Self-driving car powerhouse Waymo and autonomous drone delivery service Wing are two of the most famous graduates from X’s R&D lab to become separate Alphabet subsidiaries.
But as cost-cutting efforts intensify across the company, the runway for developing these speculative bets solely on Alphabet’s dime is shortening.
What work could feel the heat?
X’s website shows four active projects, which will face, at minimum, a reduction in support staff:
Chorus: tech to enable better real-time supply chain management.
Tapestry: computational tools to untangle the complexities of global power grids.
Tidal: an underwater sensor system to aid in more sustainable fish farming.
Taara: a plan to increase internet access through beams of light.
OK, but: as cool as all those sound, X will never be our favorite innovation lab — not when there’s one by Domino’s and Microsoft that’s focused on creating “the next generation of pizza ordering.”
Free Resource
Share brilliant ideas — speak at INBOUND!
We can see it now: you, stepping to the INBOUND stage, with a Hustle sticker slapped on your Stanley and 30 slides of mind-blowing bullets… schooling a crowd in the thousands.
This September, people from every damn continent will meet up in Boston to hear from the best minds in tech and network with on-the-pulse professionals.
Legends like Oprah, Derek Jeter, Andrew Huberman, Reese Witherspoon, and both Obamas have headlined in the past. Business leaders join them to unpack rising industry trends or a slice of the next big thing.
So whatever you’re chasing, we want in. Apply to share your freshest ideas, or let a friend know ASAP (the deadline is Feb. 16).
“Pokemon with guns” is a huge hit: “Palworld,” a video game centered on violently capturing cartoon monsters, has Pokemon fans in an uproar. But the controversy has been good for sales: The game has sold 5m copies in just three days.
SNIPPETS
The Dow Jones Industrial Average and S&P 500 both reached all-time highs on Monday to kick off a wild week on Wall Street. Earnings reports are coming from Netflix and Tesla, plus new GDP numbers and the latest from the Fed’s preferred inflation measure.
ElevenLabs, a startup cloning voices with AI, just hit unicorn status. The company’s latest funding round raised $80m, bringing total funding to $101m, at a $1B+ valuation.
Apple sold 160k-180k Vision Pro headsets during a preorder window, per analyst estimates. The devices, which debut Feb. 2, cost $3.5k (plus taxes and dignity).
OpenAI’s GPT Store now forbids “romantic companionship” apps following an influx of girlfriend GPTs, but several remain and efforts to ban them seem to have slowed. Hmm!
Sony Group called off the $10B merger between its Indian unit and Zee Entertainment, stopping the creation of one of India’s largest TV broadcasters.
Also saying no: Macy’s turned down a $5.8B offer from Arkhouse Management and Brigade Capital Management to take the department store private, despite announcing additional store closures and layoffs last week.
McDonald’s spinoff CosMc’s drew a lot of visits in its first month, registering ~2.5x the foot traffic of a typical US McD’s location in December. Do people like it or is this a novelty bump? Ten more locations are coming in 2024 to help answer that.
Oof: Kyte Baby, a Texas-based baby clothing company, apologizedagain for firing a woman who requested to work remotely while her baby was in the NICU. It’s now rethinking its maternity leave policies.
SiriusXM dodged a lawsuit from “Dawson’s Creek” star James Van Der Beek. A judge dismissed the actor’s suit, which accused the audio giant of wrongfully reneging a $700k podcast deal.
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Future Footwear
3D-printed, compostable shoes are a step toward sustainability
On-demand, custom fashion could keep shoes out of our landfills.
2024-01-23T00:00:00Z
Sara Friedman
What if we told you that you can soon buy a shoe that costs hundreds of dollars and looks like a Croc and a sock had a baby?
Not interested? Weird.
But what if that shoe could solve some of the world’s biggest sustainability problems? That kind of changes things.
The footwear in question is a collaboration between London shoe brand Vivobarefoot and material science company Balena, perThe Guardian.
Customers will have their feet 3D-scanned in stores and their shoes will be custom printed over 30 hours.
The shoes use BioCir flex, a patented thermoplastic made of 51% biological material and 49% petrochemical.
Printing shoes on demand and to a customer’s exact specifications eliminates the need for extra stock or wasted materials.
The shoes are still being prototyped and are not yet available, but a pair will one day set you back ~$254-$330.
High cost
While that might seem steep for a questionable fashion choice, the price of ignoring our recycling problems is even higher.
The fashion industry produces ~10% of global carbon emissions and uses massive amounts of water and land.
Shoes are one of the biggest offenders: most are made with rubber, plastic, metal, and adhesives that are hard to dispose of and ultimately pile up in landfills.
While these 3D-printed shoes still can’t go straight to the compost bin with your fruits and veggies, they can be returned to an industrial composting plant and broken down into a nontoxic substance.
And it might be time to get used to the look — these funky kicks join a growing group of brands attempting to make footwear sustainable by using everything from mushrooms and sugarcane to cacti and bananas.
FIT THE BILL
There are thousands of companies valued at $1B+. How many clues do you need to identify today’s billion-dollar brand?
Clue 1: This cloud-based tech company has only been around for 11 years, and it spent its first five years of existence under a different, unpopular name.
Clue 2: It is headquartered in one of the Middle East’s top emerging tech hubs. (Startup Genome named the city the world’s fifth-best global hub for tech startups in 2023.)
Clue 3: Its software platform now has ~1.9k enterprise accounts, but no matter how hard they try, one world-famous cartoon cat will never get on board with this company.
👇 Scroll to the bottom for the answer 👇
The Holy Fail
The Lord minteth in the weirdest alleged crypto scam yet
A pastor is accused of hawking a worthless cryptocurrency and pocketing $1.3m+. He says God told him to.
2024-01-23T00:00:00Z
Juliet Bennett Rylah
Build an ark, sacrifice your only son, mint a new cryptocurrency.
Eligio Regalado — pastor of the online-only Victorious Grace Church in Colorado — and his wife, Kaitlyn, are accused of scamming $3m+ off a token backed not by gold, but God.
Uh, what?
Colorado Securities Commissioner Tung Chan alleges that between June 2022 and April 2023, the Regalados sold their token, INDXcoin, to 300+ investors via their platform, Kingdom Wealth Exchange.
They claimed the coin, which sold for $1.50 each, was linked to especially valuable tokens and worth at least $10 each, according to the lawsuit.
The problem:
They had no experience in crypto.
They were selling unregistered securities without a license.
The token was plagued with technical problems and was, in reality, worthless.
Chan accused the couple of pocketing $1.3m+ of the ~$3.2m raised and spending it on luxury items, vacations, an au pair, and a home remodel.
Where is your god now?
Still around, per Regalado, who posted a video explaining that, yes, they did finance their home remodel with the money — but that’s because God told them to.
In fact, it was God who instructed the Regalados to leave their marketing business in 2021 and create a new token, saying “Take this to my people for a wealth transfer.” God would go on to offer very specific cryptocurrency advice, including when to tell investors to HODL.
Regalado maintains his role as a crypto prophet, saying, “Either I misheard God… or God is still not done with this project.”
Your move, God.
AROUND THE WEB
🩺 On this day: In 1849, Elizabeth Blackwell graduated from Geneva Medical College in New York, becoming the first US woman to receive a medical degree.
🔎 That’s interesting: What happened to Ello, the social media platform that fizzled out after nine years of trying to offer a community without ads.
🏆 Opportunity:Enter The Webby Awards for a chance to have your work recognized as the internet’s best. The extended entry deadline is Feb. 9.
👃 Haha: Mschf’s latest gag is a fragrance that smells like WD-40.
Today, we wrote about 3D-printed, compostable shoes.
But saving the planet is not without downsides: some environmentally friendly products are pricey, inconvenient, and, in this case, can take a toll on your personal style.
We want to know the truth (it’s anonymous, after all): Do you care about sustainability when you shop?
How about a trade: help us reach world domination, and we’ll ship you a fresh physical copy of Noah Kagan’s new book, Million Dollar Weekend.
Refer 5 friends to our newsletter using your special link below by Jan. 30th and you’ll receive the AppSumo founder’s blueprint for scaling a 7-figure startup.