Tech
Growth at all costs is destroying the internet. PR maven Ed Zitron says that’s an opportunity for startups.
If you spend any amount of time online, you probably noticed that your user experience keeps getting worse.
Websites are waterlogged with autoplay ads, pop-ups, and tracking scripts. Customer service chatbots are useless, despite the promises of generative AI. Social media algorithms boost rage-bait to keep you scrolling and engaged. Dating apps hide all the good ones behind a paywall. Your printer won’t work without a monthly subscription. Oh, and good luck canceling that subscription in three clicks or less.
This is the backwash of the internet’s shift from a user-first experience to one designed to maximize engagement, ad revenue, and subscriptions.
Ed Zitron, CEO of EZPR and host of the Better Offline podcast, calls it the “rot economy,” the result of “a tech industry that has become so obsessed with growth that you, the paying customer, are a nuisance to be mitigated far more than a participant in an exchange of value.”
In a recent episode of the Equity podcast, I spoke to Zitron — who is writing a book called “Why Everything Stopped Working” — about why the stagnation of major companies creates the perfect opportunity for startups to challenge incumbents across various industries.
Zitron didn’t hold back when describing Big Tech’s decline, criticizing its obsession with quarter-to-quarter growth that leads to subpar products: “They’re ugly, they’re expensive, they don’t work very well, you don’t like using them.” He argued that many of these dominant players have grown “fat and lazy” and “overconfident,” their business models based on the idea that “it’s just easier to stay with us.”
“You can beat that,” Zitron said. “Anything you see on the web that sucks right now is at threat.”
As Zitron sees it, there are numerous areas that are ripe for disruption. One of the most obvious is social media, where he notes that “to use Instagram right now is to fight Meta to get to the things you want” and get past what Meta wants you to see. “And Facebook is even worse,” he laments.
This crummy user experience, combined with the political maneuverings on Elon Musk and Mark Zuckerberg, is why we’re seeing people defect from X and Meta and sign up for platforms on the decentralized web, which is a system of independent, privately owned servers that work together to provide private and secure access to information and services.
Bluesky and Mastodon have emerged as popular alternatives to X, and many startups are throwing their hats in the ring to challenge Instagram and TikTok. In the decentralized space, Bluesky is launching a photo-sharing app called Flashes, and Pixelfed is already attracting users. Many TikTok users have downloaded RedNote as the ByteDance-owned app remains in limbo.
Enterprise and productivity software
Zitron similarly sees massive opportunities when it comes to enterprise and productivity offerings like Microsoft 365 that aren’t “great.”
Zitron said of Microsoft broadly, “They don’t make great products. They haven’t in some time.” Here, he added that he would “maybe put the gaming [division] aside” from this complaint. “I quite like the Xbox division,” he said. Then he added: “But they love laying people off and I’m sure that that place is going to slop soon.”
But it’s not just Microsoft. Zitron argued that many once-beloved Silicon Valley darlings — like Microsoft, Salesforce, Dropbox, and Zoom — lost their way after going public. The pressure to deliver quarter-over-quarter growth to appease shareholders invariably forces companies to prioritize short-term gains over long-term product quality.
He pointed to Google Docs as an example of growing corporate overreach designed to benefit a company at its users’ expense.
“Google Docs was beloved for being this really clean, easy-to-use thing,” Zitron said. “The problem is now it’s telling me that it needs AI. I must use Gemini in it now.”
Zitron called Adobe “the weakest company in tech” at the moment, calling them “desperate” and calling for a replacement. Some potential challengers we’ve seen include Figma, Affinity, and Blender.
Generally, Zitron thinks consumers will have a role to play in this shift as they cotton onto the self-serving “laziness” of incumbents.
“I believe in the next year, we’re going to see a real shift in consumers, both business and otherwise, away from these shitty companies. And when I say shitty companies, I mean most of Big Tech.”
Search
Google in particular is already facing an assault by numerous startups, and deservedly so in Zitron’s mind. Google Search used to surface the best links for your query. Now it surfaces a page of sponsored links that don’t answer your question.
“Google search is bad now,” he said, noting that DuckDuckGo “apparently makes money” and may be able to rise if the judge in Google’s search antitrust trial forces the company to share its datasets with competitors.
Zitron didn’t list all the other search competitors, but it’s worth mentioning a few. Perplexity, for example, is competing with chatbot-style search that answers questions directly in a conversational way while citing resources. Diem is a female-focused social search engine with an AI chatbot that’s fighting against data bias in a world designed for men. In the decentralized space, Marginalia Search boosts obscure, non-commercial sites rather than SEO-optimized junk, while OpenSearch is an independent, crawler-based engine.
For users who prioritize not just a better search experience but also a more privacy-focused search, there’s Kagi, a paid, private search engine with a focus on high-quality results and no ads.
There’s also Brave Search, a fully independent search index that doesn’t rely on Google or Bing. Brave also has a privacy-focused browser that blocks ads and trackers by default.
Zitron believes email is another area that a startup could “take on.” While email is one of the dominant communication tools, most of our inboxes are cluttered with spam and disorganized due to clunky UX from giants like Outlook, Gmail, and Yahoo. The same is true for enterprise email, like Microsoft Exchange and Google Workspace.
There are plenty of opportunities for disruption here, notes Zitron. He says an offering from the end-to-end encrypted email service Proton “isn’t as usable as it needs to be,” but it’s not the only game in town (rival services include Tutanota and Skiff). At the same time, increasingly popular alternatives Superhuman, Hey, and Shortwave are trying to rethink user experience in email.
Build products that don’t suck
Zitron sees opportunities for disruption everywhere, and not just in a purely digital sense. He also sees an opportunity for startups to take on Amazon’s shipping and logistics business by “creating a coalition of other companies with smaller businesses — a Shopify for the delivery side.”
Whether it’s coming up with a new real estate technology to replace the “fat and happy” Zillows of the world, or a better version of Canva that’s not bloated with AI offerings, Zitron has called for a fresh take on the venture capital model. He says VC has too long focused on growth at all costs, which has created a stranded generation of startups that raised too much money — and have nowhere to go as a result.
Zitron’s PR business is to draw attention to startups, so it’s in his interests to underscore the many shortcomings of Big Tech in comparison. Still, it was an inspiring chat.
If you’re hankering for a better user experience, or you’re working on something to take down the bigs, you’ll definitely enjoy it. Check out our chat here.
Tech
Marc Lore says that AI will soon enable anyone open a restaurant
Marc Lore, the veteran e-commerce entrepreneur who sold his previous startups to Amazon and Walmart, has big plans to infuse AI into his current venture, Wonder.
The centerpiece of those plans is Wonder Create, an initiative that would let anyone — from food entrepreneurs to social media influencers — use AI to design and launch their own restaurant brand in under a minute. The virtual restaurant would then go live across Wonder’s growing network of tech-enabled kitchen locations, currently numbering 120 and expected to reach 400 next year.
Lore’s startup, a vertically integrated dining and delivery platform, has evolved from food trucks to fast casual restaurants with 10 to 20 seats. These are not normal restaurants, though; they are “programmable cooking platforms” capable of operating as 25 different types of restaurants based on cuisine, within their all-electric kitchens that are increasingly becoming robotic.
Speaking at The Wall Street Journal’s “Future of Everything” conference this week, Lore said these kitchens have a 700-ingredient library. The “restaurants” they house actually consist of many different brands that operate from within these locations.
In addition to a staff of up to 12 people in these kitchens, cooking tech, like conveyors and robotic arms, are involved in the cooking process. The company also just bought Spice Robotics, a maker of an automatic bowl-making machine previously used by Sweetgreen. Next year, it plans to offer an “infinite sauce machine” that can make bout 80% of all the sauces found in recipes on the internet today.
Wonder Create was announced earlier this year as a way for anyone to use Wonder’s software to launch their own restaurant brand and recipes.
Lore offered more details as how this would work by leveraging AI technology, describing the plan as something like a “Shopify front-end with an AI prompt.”
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“You type in what kind of restaurant you want to build. It builds the restaurant — AI does — in under a minute. It does the name, branding, description, pictures, pricing, health information, and all the recipes for your restaurant,” Lore explained during an interview at the WSJ event. The would-be restaurateur could then refine the prompt if changes were needed. When ready to go live, the restaurant would launch across all of Wonder’s locations.
The company currently has 120 of these “programmable cooking platforms” in operation, a number that’s expected to grow to 400 next year. As it adds robotics to the equation, the company won’t necessarily reduce headcount, Lore noted. Instead, it will increase the number of meals a kitchen can produce in a given period.
“We have about 7 million throughput capacity with 12 people,” he said. “We see a path to getting to 20 million throughput out of 2,500 square feet with just 12 people. The goal also is…I guess by 2035, to have 1,000 unique restaurants operating out of the 2,500 square feet,” Lore added.
The goal with these AI-created “restaurants” is to allow people to experiment with food in new ways. A restaurateur could test recipes to gauge customer reaction before adding dishes to his own brick-and-mortar locations, for example.
Lore sees other use cases for the platform, too, like letting influencers connect with their audience through their own “restaurant” brands without having to actually launch their own chains.
“It could be a mega-influencer, a micro-influencer — anyone that wants to monetize their following,” Lore said. “Or it could be a private trainer that wants to make specific bowls. It could be a not-for-profit. It could be Disney for [marketing] their new movie. Anybody can make a restaurant.”
Whether that many people actually want to is an open question. Ghost kitchens — a similar concept that promised to let brands sell food without owning a restaurant — had a rocky run in the early 2020s, with several high-profile operators scaling back or shutting down after struggling to build customer loyalty. Wonder’s added layer of automation and AI may address some of those pitfalls, but the model is still unproven at scale.
MrBeast Burger, a famous ghost kitchen experiments, vividly illustrated the challenge. The brand faced widespread complaints over inconsistent food quality — a consequence of relying on dozens of different contracted kitchens and staff. Wonder’s programmable, increasingly automated kitchens are designed to solve exactly that problem.
There are still limits to this idea, Lore admitted. Wonder’s team (including its robots) can’t do things like toss and stretch pizza dough or slice and roll sushi. Instead, Wonder’s focus is on simpler basics like burgers, chicken wings, fried chicken, and bowls.
The whole plan comes together with Lore’s other acquisitions — Grubhub for its 250 million-deliveries-per-year business and Blue Apron for its meal kit business. Now, Wonder is focused on buying restaurant brands, like New York City-based Blue Ribbon Fried Chicken, which it snapped up for $6.5 million in February.
“When you buy a brand — and you can buy a brand that has 10 locations, or even 50 locations — and then overnight put it in 1,000, there’s just an incredible arbitrage there,” Lore noted.
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Tech
Peter Sarlin’s QuTwo reaches $380M valuation in angel round
QuTwo, the Finnish AI lab founded by former AMD Silo AI CEO Peter Sarlin, is now valued at €325 million (approximately $380 million) after raising a €25 million angel round ($29 million). It’s a sign of enduring tailwinds for AI, quantum computing, and sovereign tech, especially for Europe-made companies.
QuTwo’s name is a nod to quantum computing, but it hasn’t gone all-in on quantum. Its core product, QuTwo OS, is an orchestration layer that directs tasks to classical, quantum or hybrid architectures — with the idea that enterprise use cases are often best served by “quantum-inspired” computing, which uses classical chips to simulate quantum behavior on more reliable hardware.
Enterprise AI will be QuTwo’s bread and butter. The company already secured some $23 million in committed revenue thanks to design partnerships with the likes of retail giant Zalando, for which it helped develop AI assistants. “AI is the North Star that we will continue to aim for. Quantum is just a new type of compute,” said Sarlin, who is adamant that QuTwo is an AI company.
Momentum has been building around Europe-based AI labs, and several of them have become overnight unicorns. Just last week, former DeepMind researcher David Silver secured $1.1 billion for his new endeavor, Ineffable Intelligence. QuTwo’s valuation and round size are somewhat modest in comparison but will let it pursue its roadmap under less pressure.
According to Sarlin, who serves as QuTwo’s executive chairman, this was a decision he also made for his previous company, Silo AI, which AMD acquired for $665 million in 2024. “I had a lot of investors who would have wanted to pour a lot of money into making Silo into Europe’s OpenAI, but I didn’t believe in that play,” he told TechCrunch.
The main difference is that QuTwo wants the freedom to think long term, with a five- to ten-year horizon. “We are on a mission to build the globally leading AI company for the next paradigm, given that Europe did not succeed in building the AI company for this era,” Sarlin said.
It’s not that Sarlin is bearish on European AI, of which he is a prolific backer. Nor is he necessarily critical of extra-large rounds — he volunteered that he is also an investor in Yann LeCun’s Ami Labs, which raised $1.03 billion, and in British-American venture Recursive Superintelligence, which is rumored to be following the same path. But he didn’t see a billion-dollar round as the right fit for QuTwo — nor VC money, at least for now.
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Until recently, QuTwo was solely funded through Sarlin’s family office, PostScriptum, which also incubated NestAI, the other company where he serves as executive chairman. But whereas NestAI raised some $115 million in a funding round led by Finland’s sovereign fund and Nokia, QuTwo wasn’t seeking to raise external funding.
However, when the lab’s soft launch generated significant interest earlier this year, Sarlin decided he would say no to checks from VCs and strategic investors, but yes to an angel round in part due to the geopolitical moment Europe is currently navigating.
With Europe increasingly looking to favor local alternatives to U.S. tech providers, there are tailwinds for AI made in Finland. But there is also investor appetite for a company that promises to facilitate more ambitious R&D initiatives in the fields where the region already has strong players, such as the automotive, life sciences and gaming sectors.
Conversely, Sarlin expects that QuTwo’s angel investors could open doors across Europe. There are definitely quite a few introductions he could request from this group, which includes Yuri Milner, Xavier Niel, Nico Rosberg, Dieter Schwarz and Niklas Zennström, and as well as many startup founders from Hugging Space, Legora, Miro, Skype, Supercell, Wolt, and more.
This will also support QuTwo’s growth. It recently expanded into Sweden, and has been hiring. According to Sarlin, some 50 quantum and AI scientists have joined the team, which includes two other second-time entrepreneurs: his former cofounder at Silo, Kaj-Mikael Björk; and Kuan Yen Tan, a cofounder at IQM, the Finnish quantum company that is set to go public.
QuTwo’s connection with IQM is also a reminder that the company believes we are about to enter the quantum era — it just can’t wait. “The question for repeat founders like [us] is how can we have even a larger impact. In the long term, it’s important for Europe that we build the AI company for the next paradigm out of Europe. But, in the short term, we can have a significant impact in driving ambitious R&D moon shots in Europe,” Sarlin said.
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Tech
reMarkable’s new Paper Pure tablet goes back to basics with a monochrome screen
After exploring the bigger market for productivity tablets featuring color displays with the Paper Pro and the smaller Paper Pro Move, E Ink tablet maker reMarkable is returning to its roots with a new monochrome device called the Paper Pure.
The new, $399 Paper Pure succeeds the monochrome reMarkable 2 after six years, and comes with more powerful hardware as well as modern software features that make it competitive in today’s tablet market.
The Paper Pure has a 10.3-inch display when measured diagonally, the same as the reMarkable 2, but the new one is wider, which, the company says, makes it easier to take notes and read text. Notably, the resolution hasn’t changed between the two tablets, staying at 1872 x 1404 pixels with a pixel density of 226 PPI.
The tablet also comes with 32GB of storage, four times the amount you got on its predecessor, and is also about 40 grams lighter, weighing 360 grams.

ReMarkable said the Paper Pure is 50% more responsive than the reMarkable 2, and offers 30% more battery life with its 3,820 mAh battery.
The company has added a slew of new features to the tablet to bring it up to par with modern productivity tools, including support for a web app. The Paper Pure lets you sync your calendar, as well as take and share notes for a particular meeting. And if you import documents from cloud storage services, the online sync service will automatically convert them into a notebook suited for reading and annotating on the tablet itself. The company said it also comes with better handwriting search capabilities.
The Paper Pure integrates with Slack, too, so you can convert handwritten notes into typed text that you can share. It also integrates with collaboration tool Miro, letting you share sketches and the like.
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The Norwegian company said it now plans to sunset production of the reMarkable 2, but will still offer software updates and support to existing customers.
The Paper Pure’s base model comes bundled with a stylus, and the costlier $449 version gets you a fancier stylus, dubbed Marker Plus, that includes an eraser function, plus a sleeve folio in various colors. Users can order the device starting today, and shipping is expected to start in early June.
The company said it has sold more than 3.5 million devices so far, and that it has 1.2 million subscribers for its Connect service, which offers unlimited cloud storage, exclusive templates, and the ability to create links to share notes or sketches.
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