Tech
SpaceX launches new V3 Starlink satellites but suffers another booster failure
SpaceX successfully deployed the first third-generation Starlink satellites on Friday using an upgraded version of its prototype Starship — the 13th test flight of its mega-rocket to date. But the company suffered another failure with its Super Heavy booster during a planned simulated landing in the Gulf of Mexico.
It’s the second time the company has had an issue with the Super Heavy booster on this V3 version of Starship. In May, on the first Starship V3 flight, SpaceX encountered a failure of the Starship’s Super Heavy booster as it separated from the upper stage of the rocket. SpaceX was able to perform a simulated landing of the upper stage of Starship during Friday’s launch after it deployed the Starlink satellites.
The launch came a little more than a week after SpaceX tried to conduct the 13th Starship launch. That attempt had to abort immediately after ignition due to a number of rocket engine failures. SpaceX said it replaced six engines ahead of Friday’s flight to fix the problem.
During Friday’s launch, the booster made it farther into its planned flight but wasn’t able to properly fire up all of the engines required for its simulated landing burn. The booster exploded after a faster-than-expected impact with the water.
This was the first launch of Starship since SpaceX went public in June in the largest IPO in history. In a test of SpaceX’s “fly, fail, fix” approach to Starship development, the company saw its stock decline last week in the day following the launch abort. The dip is part of a larger downward trend since the IPO that has seen the company’s stock drop from a peak of more than $200 per share to $115 at the close of trading on Friday. In after-hours trading, SpaceX shares fell another 2% following the booster failure, before paring some of those losses.
SpaceX had better luck with the Starship V3 upper stage during Friday’s launch. The upper stage lost a rocket engine during the first V3 launch in May. That didn’t happen this time around, as Starship encountered no issues on its way to deploying the new Starlinks. The Ship, as the company calls it, was able to survive the harsh forces of atmospheric reentry and perform a simulated landing in the Indian Ocean roughly one hour after liftoff.
Unlike previous Starship missions, the Ship didn’t explode when it tipped over into the water. The Ship instead floated around in the water, giving SpaceX a chance to use a drone to closely examine the heat shield tiles on its belly.
The new Starlink satellites burned up in the atmosphere roughly 20 minutes after deployment, as Starship still isn’t capable of reaching Earth orbit. SpaceX was able to communicate with all of them while they were in space, marking a step forward for that program, which is the only profitable part of the company’s business.
The ability to deploy the more capable V3 Starlink satellites improves the economics of the company’s capital-hungry space internet network. SpaceX has said launching 60 of the new satellites on Starship is a “potential twenty-fold increase” in downlink capacity deployed versus those flown by a single Falcon 9.
However, it’s not clear if SpaceX can realize those gains if Starship expends the Super Heavy booster rather than reusing it. SpaceX’s S-1 said that without a fully-reusable Starship, progress on Starlink “would be at a slower pace and higher cost.”
With assistance from Tim Fernholz.
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Tech
Sam Altman’s biometric startup World raises $52.5M via crypto sale
World, the online verification startup co-founded by OpenAI’s Sam Altman, has raised $52.5 million through a crypto token sale to strategic investors.
Participating investors joined a 12-month lockup sale of World’s token, WLD. Lockup periods prevent asset buyers from selling or trading their tokens for a set period of time. The yearlong lockup demonstrates investors’ “long-term commitment to World’s continued growth and utility,” the company said Friday in a press release.
The money will go to the World Foundation, an exempted limited guarantee foundation based in the Cayman Islands, created to steward the expansion of World’s network.
The sale’s lead buyer is Pantera Capital, a venture capital firm focused on digital assets. Other companies involved in the sale included Eightco Holdings, Bain Capital Crypto, Susquehanna Crypto, and Selini Capital, among others.
The World project is operated by Tools for Humanity (TFH), a startup based in San Francisco and led by CEO and co-founder Alex Blania. Altman is the company’s other co-founder.
World is an unusual business that revolves around online verification and sells access to what it calls “proof of human” tools. The idea is that, as bots and AI generate much of the content online, it will become increasingly important to know who is really human and who isn’t. World’s mission is to popularize its World ID, an anonymous digital marker that verifies whether a human — not a bot or an AI agent — is behind a particular account.
To get a verified World ID (the highest level of verification within World’s system), users must have their eyes scanned by an Orb, a metallic ball that converts a user’s iris into a distinct cryptographic identifier. World’s Orbs are located at its offices and have also been deployed at partner stores around the world.
The project began as a more overtly crypto-based experiment under the name “Worldcoin” — the same name of the crypto asset involved in the recent sale. Users can trade or hold the token through World’s app, which also serves as a custodial wallet. The company later rebranded to World amidst a broader backlash against the crypto industry.
In April, the project launched a new version of its app and announced partnerships with companies, including Tinder, Zoom, and Docusign. Yet, despite its global ambitions, World has struggled to scale its business or convince consumers to care much about its mission. In June, TFH conducted a round of layoffs.
Correction July 24: An earlier version of this story incorrectly stated that World has a partnership with Ticketmaster. It does not. We regret the error.
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Tech
OpenAI’s own model went rogue before Kimi had Wall Street sweating
Chinese AI lab Moonshot’s open model Kimi went viral this week for reasons that had less to do with the model itself and more to do with how the U.S. AI industry reacted to it. Meanwhile, an unreleased OpenAI model wandered outside its test environment and ended up connected to a real security breach at Hugging Face — a reminder that “China risk” isn’t the only kind of AI risk worth worrying about.
On this episode of TechCrunch’s Equity podcast, hosts Kirsten Korosec, Anthony Ha, and Sean O’Kane dig into why Kimi K3 set off a fresh round of AI panic, the industry’s response to an OpenAI staffer’s “regulatory FUD” post, and what that OpenAI breach means for AI security more broadly.
Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.
Tech
India’s move against Jack Dorsey’s Bitchat sparks legal debate
An apparent Indian government effort to remove GitHub repositories for Jack Dorsey’s offline Bluetooth-powered messaging app Bitchat has raised questions about the legal basis for targeting open source software because of how it works.
The issue with Bitchat came to light after Dorsey posted on X on Friday what he said was a notice from India’s Ministry of Home Affairs directing GitHub to restrict access to three Bitchat repositories within three hours. The notice argues that the app’s anonymous, decentralized architecture could facilitate unlawful activity and allow users to communicate during internet shutdowns while making lawful interception more difficult.
The move comes as Indian authorities tighten internet restrictions after weeks of student-led protests in New Delhi over alleged examination paper leaks.
The demonstrations, known as the “cockroach” movement, have drawn thousands of young people demanding the resignation of Indian Education Minister Dharmendra Pradhan, with authorities also imposing restrictions on marches toward the parliament. Local media reported that some protesters downloaded offline messaging apps, including Bitchat and Briar, after internet services were suspended.
The order represents a new approach for the Indian government, which, before 2021, typically relied on Section 69A of the IT Act and the 2009 Blocking Rules when it wanted content removed nationwide, according to Mishi Choudhary, founder of SFLC.in, an Indian digital rights legal advocacy group.
She told TechCrunch that the document resembled the format of recent government takedown notices, but the legal provisions it cites do not clearly authorize authorities to seek the removal of an entire software project because of how it works rather than any specific illegal content.
Unlike many government takedown requests, the document Dorsey shared does not identify specific posts, messages, or repositories containing unlawful material. Instead, it argues that Bitchat’s ability to function during internet shutdowns and without central servers could facilitate unlawful activity.
The notice, dated July 23 and apparently issued by the Indian Cybercrime Coordination Centre (I4C), which operates under India’s Home Ministry, said Bitchat enables users to communicate “even during network restrictions” and “internet shutdowns,” making it possible to “circumvent lawful restrictions” while hampering “lawful interception, attribution, and traceability.”
In recent days, Bitchat has seen a sharp rise in popularity in India. Market intelligence provider Sensor Tower shared data with TechCrunch that showed that India accounted for about 85% of the app’s global downloads between July 17 and July 23, compared with about 1% over the previous 30 days. Bitchat was downloaded more than 91,000 times in India over the past five days, after downloads jumped thirty-two-fold on July 19 from the previous day. The app’s daily active users in India also reached more than 330,000 on Thursday, the highest level recorded for the app in the country.
Request raises questions about open source software
The Internet Freedom Foundation (IFF), a New Delhi-based digital rights advocacy group, questioned the effectiveness of the apparent takedown request.
“The order also fails on its own terms as deleting a repository does not delete the application from any phone that carries it, and the mesh keeps functioning without servers. What the takedown actually prevents is scrutiny of the underlying code,” the group said on X.
Raman Chima, global program director at the Association for Progressive Communications, a global digital rights network, told TechCrunch the apparent notice went beyond targeting the messaging service itself by seeking to remove its open source code from GitHub.
“They’re [the Indian government] not just targeting the designated service provider, but they’re trying to say that open source development of this type of product … should not occur,” he said.
GitHub did not confirm whether it had received the document. The repositories remained accessible from India on Friday. Asked about the apparent notice, the company shared a link to its public repository of government takedown requests, which did not contain any recent requests related to Bitchat.
Namrata Maheshwari, Asia Pacific policy manager and encryption policy lead at digital rights group Access Now, told TechCrunch that blocking an offline messaging platform during internet restrictions risked turning shutdowns into “a communication blackout” that violated fundamental rights. Protesters in any democracy have the right to communicate privately and coordinate peacefully, she said.
“When we receive a complete government takedown request, we notify the affected account owners and give them an opportunity to appeal,” Rose Coogan, the company’s principal online safety counsel, said in a statement emailed to TechCrunch. “We share every government takedown request we take action on publicly.”
India’s Home Ministry did not respond to a request for comment.
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