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The Big One: Google's 'moonshot factory' lays off dozens
As layoffs ripple their way across Alphabet, the latest to see cuts is the innovation lab of Google, Bay Area Inno reports.
The "moonshot factory" X has laid off dozens of employees and is now turning to venture capital to fund further endeavors, an X spokesperson confirmed. According to an email obtained by Bloomberg, the move is part of a developing structure at the Mountain View, California-based lab to better enable projects to spin out and function as independent startups.
The company did not specifically say how many people would be affected, but said the layoffs will mainly impact support staff.
The lab has been a catalyst for innovation, with companies such as autonomous-driving vehicle company Waymo and robotics-software company Intrinsic Innovation graduating and spinning out from X.
Read more: Google's 'moonshot factory' X lays off dozens as it seeks outside investment
- Startups to Watch: Charlotte, North Carolina-based Fastbreak.ai, a sports-scheduling platform, has landed the National Basketball Association as an investor and customer of its scheduling software. NBA Equity, the corporate venture arm of the NBA, invested in Fastbreak's $5.2 million round. The startup's artificial-intelligence scheduling platform will help the league set matchups as it considers factors such as venue availability, travel for games, schedule fairness and television viewership, Charlotte Inno reports.
- Albedo Space, a startup that develops low-flying, mid-sized satellites used to capture high-quality images from space, raised a $35 million round from Bill Gates’ investment firm Breakthrough Energy Ventures and other backers. The startup operates in very low Earth orbit, or VLEO, and its image quality equates to the resolution of photos taken by drones and planes, Colorado Inno reports.
- Vancouver, Washington, software maker Digs secured $7 million for its software used by homebuilders during the building process to collaborate on design and construction. It can also help homeowners track and manage maintenance once they purchase the property, Portland Inno reports.
- With $2 million in seed funding, Boston women's health startup 3Daughters is making progress towards clinical trials for a less painful intrauterine device. The startup's device is magnetic, making retrieval easier, and eliminating the need for the potentially painful measuring process, BostInno reports.
- Palm Tree Crew, a startup co-founded by Norwegian DJ and music producer Kygo, raised $6 million from investors to build a live events and hospitality business headquartered in Miami. The company operates a live-events and hospitality business, a lifestyle consumer brand and a venture arm that invests in early-stage consumer and technology brands. Its flagship Palm Tree Music Festival was held in eight U.S. and international locations in 2023, Miami Inno reports.
Is a fix coming for the 'innovation tax'?
The push is on to correct what detractors call an “innovation tax” before Jan. 31, the start of tax season, Triangle Inno reports.
Eva Garland, founder of Eva Garland Consulting, says a decision not to extend a provision allowing research-and-development costs to be fully expensed under Section 174 of the U.S. tax code left some of her clients scrambling. Just last week, a client had to turn down a $1.5 million grant “because they didn’t know if they’d be able to pay the taxes on it,” she said.
But the sense of dread clients have been feeling for months is being replaced with “cautious optimism,” as a potential fix is in the works in Washington, D.C. Last week, the chairs of the Senate Finance Committee and the House Ways and Means Committee released a proposal for new tax legislation that includes addressing Section 174. Specifically, it would restore full deductibility for research expenses for tax years 2022 through 2025 – providing a retroactive tax benefit for 2022 and 2023.
Concerns still exist, however, and a legislative fix is not certain. Even if a measure does pass, the current proposal only defers the tax through 2025.
READ MORE: Fix for 'innovation tax' in sight? Startups feeling 'cautious optimism'
Weird and Wired: Startup brings its humanoid robots to BMW's production line
Figure AI has inked a deal with BMW to have its robot work in the car developer’s United States' facilities. BMW’s newest employee will be a 5’6”, 130-pound humanoid robot, dubbed 01. Sunnyvale, California-based Figure has been working on the robot — which has two arms, two legs, two hands and a screen for a face — since 2019. It will be the first time a human-like robot will join an automotive line, Bay Area Inno reports.
Read more: Figure AI to bring its humanoid robots to BMW's production line
