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Snapchat+ tops 25M subscribers, driving company’s direct revenue ARR to $1B

Snap’s direct revenue business has reached a $1 billion annualized revenue run rate, the company announced on Wednesday. Annualized revenue refers to a business’s current revenue rate projected over a full year. The social media giant says the milestone is driven by its Snapchat+ offering, which has now surpassed 25 million subscribers.

Launched in 2022, Snapchat+ gives subscribers access to exclusive and pre-release features for $3.99 per month. Following a successful launch, Snap introduced additional paid tiers beyond the core Snapchat+ subscription over the past year to further diversify its revenue streams.

“Snapchat+ has become one of the fastest-growing consumer subscription services globally, with subscriber growth every quarter,” the company wrote in a blog post. “What started as an early-access program for our most engaged Snapchatters has quickly scaled into a meaningful business—one that now represents a strong and growing revenue stream alongside our ads business.”

Last June, Snapchat launched Lens+, which gives users access to exclusive Lenses and AR experiences, along with the perks in the standard Snapchat+ tier, for $8.99 per month.

In early 2025, the company launched an ad-free Snapchat+ subscription tier called Platinum for $15.99 per month. And, in a controversial move in September, Snapchat announced plans to cap free storage for its Memories feature and launched a paid storage plan that costs $1.99 per month. Snapchat+ subscribers will get up to 250GB of storage as part of their monthly subscription, while Snapchat Platinum users will get 5TB.

Moving beyond Snapchat+, the company announced yesterday that it’s launching creator subscriptions in alpha with select people in the U.S. Users will be able to buy subscriptions to creators, including Jeremiah Brown, Harry Jowsey, and Skai Jackson. Creators can set their own monthly prices for subscriptions, which will unlock subscriber-only content, priority replies to a creator’s public Stories, and an ad-free experience for that creator’s Stories.

In terms of the future, Snap says it’s going to continue to grow Snapchat+ with a focus on customization and community-driven features.

Snap has proven there is a market for social media subscriptions, and rival Meta is following suit, as the company told TechCrunch last month that it was going to test new subscriptions that give people access to exclusive features on Instagram, Facebook, and WhatsApp.

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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.

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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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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.”

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