Tech
Kana emerges from stealth with $15M to build flexible AI agents for marketers
Marketing is one of the few operations no industry can afford to ignore, which is why we have a veritable host of AI-powered marketing tools being shoved into marketers’ faces today. All the social platforms, from Facebook and Instagram to TikTok, and major incumbents like Microsoft and Google, to content-generation startups like Jasper and Copy.ai, offer AI tools that claim to make marketers’ lives easier in uncountable ways.
That was partly why I was confused to see yet another marketing AI startup entering the fray: San Francisco-based Kana just came out of stealth with a suite of AI agents that can do data analysis, audience targeting, campaign management, customer engagement, media planning, and optimizing for AI chatbots. The startup has raised $15 million in a seed funding round led by Mayfield.
But Kana has something going for it that most marketing startups today don’t: Its co-founders, Tom Chavez (CEO; pictured above on the right) and Vivek Vaidya (CTO; pictured above on the left), have been building marketing tech for more than 25 years. Kana’s actually their fourth venture after Rapt (acquired by Microsoft in 2008), Krux (bought by Salesforce in 2016), and startup studio super{set}, which they incubated Kana in for nine months.
Calling this a “wondrous” time to be building, Chavez said there was a clear opportunity to bring their experience and today’s AI tech to bear on this class of problems. “We see a market that’s crying out for solutions that meet this moment […] We understand the space deeply, having wallowed in it arguably a little too long; having really stood in our customers’ pain,” he told TechCrunch.
The solution, as Kana pitches it, involves “loosely coupled” AI agents that can be tailored “on the fly,” integrated into legacy marketing software, and can simultaneously work on different operations. So a marketer could, for example, upload a media brief that Kana’s agents would analyze to figure out the campaign goals, search for the audience to target, and pull in data from inventory and market research to further tweak the plan. The platform bakes in autonomous campaign tracking, optimization, and reporting.
Alongside agents, Kana offers synthetic data generation to augment third-party data sources for activities like market research and audience targeting. This, Chavez argued, could help companies reduce the costs of using third-party data, fill in gaps in the data, and help marketers run tests on various platforms faster and narrow down strategies.
Kana says this is all done while keeping humans in the loop so that marketers can approve the AI agents’ actions, give feedback, and customize what the agents do as their needs change.
Chavez and Vaidya emphasized the importance of the platform’s flexibility, arguing that the ability to deploy, tailor, and build new agents in real time would let marketers see results on their campaigns faster than they would with legacy systems.
Going forward, the startup sees that very flexibility to customize its platform for customers, doubling as its moat against incumbents and other startups building similar products.
“We have the opportunity not to create bespoke solutions, but to highly tailor and configure these solutions to meet customers where they are. Larger companies just are never going to get there,” Chavez said.
“We live in a world which allows us to explore a third option [with customers]: not build, not buy, but build with — build with in a way which is supported,” Vaidya added. “We can move with insane speed that these big companies just cannot. And that’s our advantage.”
Kana will use the fresh cash to expand hiring across engineering, product, and go-to-market. Mayfield managing partner Navin Chaddha is joining the company’s board.
Tech
Tesla dodges 30-day suspension in California after removing ‘Autopilot’
The California Department of Motor Vehicles will not suspend Tesla’s sales and manufacturing licenses for 30 days because the EV maker has stopped using the term “Autopilot” in the marketing of its vehicles in the state.
The decision, issued late Tuesday, means Tesla can continue selling its EVs in California without interruption and officially settles a case that has been dragging on for nearly three years. California is Tesla’s biggest U.S. market.
In November 2023, the DMV filed accusations that Tesla violated state law by using deceptive marketing of Autopilot, its basic advanced driver-assistance system, as well as its more capable Full Self-Driving driver-assistance software. The state regulator argued that the terms misled customers and distorted the capabilities of the advanced driver-assistance systems.
Tesla stopped using the term “Full Self-Driving Capability” and instead used Full Self-Driving (Supervised) to more accurately describe the system and clarify that drivers were still required to monitor it. But Tesla held on to the Autopilot term, prompting the DMV to refer the case to an administrative law judge at the California Office of Administrative Hearings.
In December, the administrative law judge agreed with the DMV’s request to suspend Tesla’s sales and manufacturing licenses in the state for 30 days as a penalty for its actions. The DMV agreed with the ruling but didn’t pounce; instead, the state regulator gave Tesla 60 days to comply.
“Since then, Tesla took corrective action and has stopped using the misleading term ‘Autopilot’ in the marketing of its electric vehicles in California,” the DMV stated in a release posted on its website. “Tesla had previously modified its use of the term ‘Full Self-Driving’ to clarify that driver supervision is required. By taking this prescribed action, Tesla will avoid having its dealer and manufacturer licenses suspended in the state for 30 days by the DMV.”
Tesla didn’t just stop using the term Autopilot, though. In January, the company discontinued Autopilot in the U.S. and Canada altogether. The move not only helped it comply with the DMV but was also viewed as a way to boost adoption of FSD, which, unlike Autopilot, requires the owner to pay for the upgraded system.
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FSD Supervised, which until February 14 required an $8,000 one-time fee, is now only available through a monthly subscription of $99. That subscription fee is expected to increase as the system becomes more capable, Tesla CEO Elon Musk has said.
Tech
U.S. court bars OpenAI from using ‘Cameo’
A federal district court in Northern California ruled in favor of Cameo, a platform that allows users to get personalized video messages from celebrities and ordered OpenAI to stop using “Cameo” in its products and features.
OpenAI was using the “Cameo” name for its AI-powered video-generation app Sora 2. Users could use that feature to insert digital likenesses of themselves into AI-generated videos. In a ruling filed Saturday, the court said the name was similar enough to cause user confusion and rejected OpenAI’s argument that “Cameo” was merely descriptive, finding that “it suggests rather than describes the feature.”
In November, the court granted a temporary restraining order to Cameo and stopped OpenAI from using the word. The AI company then renamed the feature to “Characters” after that order.
“We have spent nearly a decade building a brand that stands for talent-friendly interactions and genuine connection, and we like to say that ‘every Cameo is a commercial for the next one,” Cameo CEO Steven Galanis said in a statement.
“This ruling is a critical victory not just for our company, but for the integrity of our marketplace and the thousands of creators who trust the Cameo name. We will continue to vigorously defend our intellectual property against any platform that attempts to trade on the goodwill and recognition we have worked so hard to establish,” he noted.
“We disagree with the complaint’s assertion that anyone can claim exclusive ownership over the word ‘cameo,’ and we look forward to continuing to make our case,” an OpenAI spokesperson told Reuters in response to the ruling.
OpenAI has been involved in several intellectual property cases in recent months. Earlier this month, the company ditched “IO” branding around its upcoming hardware products, according to court documents obtained by Wired. In November, digital library app OverDrive sued OpenAI over its use of “Sora” for its video-generation app. The company is also in legal disputes with various artists, creatives, and media groups in various geographies over copyright violations.
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Tech
DG Matrix raises $60M to make data center power smarter
Data centers face a conundrum: how to power increasingly dense server racks using equipment that relies on century-old technology.
Traditional transformers are bulky and hot, but a new generation of solid-state transformers promises to address both problems while making power management more flexible.
One solid-state transformer startup, DG Matrix, has raised $60 million in a Series A round, TechCrunch has exclusively learned. Engine Ventures led the round with ABB, Cerberus Ventures, Chevron Technology Ventures, Clean Energy Ventures, Fine Structure Ventures, Helios Climate Ventures, MCJ, and Piedmont Capital participating.
The company also recently announced a deal to provide its Interport device to Exowatt, the startup building solar-plus-storage containers to supply data centers with 24/7 electricity.
The Interport device acts as a router for power, Subhashish Bhattacharya, co-founder and CTO of DG Matrix, told TechCrunch. One Interport can handle up to 2.4 megawatts of connections. For example, it could accumulate 600 kilowatts from solar panels and 600 kilowatts from grid-scale batteries to feed power to 12 racks drawing 100 kilowatts each.
Because Interport can integrate electricity from a variety of sources, including large batteries, DG Matrix says it can eliminate uninterruptible power supplies (UPS) and the equipment needed to support them.
Altogether, one Interport can cut down the amount of space devoted to power conversion in a data center. Two 4-by-30-foot skids laden with power conversion equipment can be replaced by a single four-by-four-foot Interport device, DG Matrix co-founder and CEO Haroon Inam told TechCrunch.
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By eliminating several devices, the company can boost the system’s overall efficiency. All the legacy devices chained together can achieve about 82% to 90% efficiency, Inam said, while Interport is 95% to 98% efficient. He said that reliability should improve, too. “When you are using only 10%, 15% of the components that legacy is using, you’re going to be far more reliable,” he added.
DG Matrix is in the process of rolling out initial units to customers in June. Its next product will be a sidecar to supply data center racks with power that builds on the technology the company has already developed.
Currently, data centers represent about 90% of DG Matrix’s pipeline, with the remainder devoted to EV charging for fleets. Inam said the next step is to expand into building power and add more capacity to build micro- and mini-grids to support electrification projects in remote communities. There, Interports would orchestrate power from solar, wind, and batteries to provide round-the-clock electricity without a grid connection.
“Nobody’s going to build a $100 million transmission line to a village,” Inam said. “Now you can spend a fraction of that money and help eliminate energy poverty.”
