📓Creativ Brief: Startup Grind Recap and Silicon Valley
Global AI funding. Generic AI. Disney licensing antitrust. Sports media rights. Meta fined again. Talking to animals.
I want some cash to build out our machine-generated insights products.
So I made my first visit to Silicon Valley this week to attend Startup Grind, an annual conference connecting startups and investors with a series of learning panels.
Nestled in the Santa Clara Valley from San Jose to San Francisco, the region is one of the wealthiest domiciles in the United States, receiving its name from the silicon circuits, microprocessors, and computers that birthed our digital age in the 1990s.
AI was the only topic on everyone's lips.
Venture capital partners from Sequoia, Mayfield, and Lightspeed discussed how AI was democratizing product development, allowing anyone and their dog to code the next transformative consumer products.
Innovators like the co-founder of Instagram spoke about a difficult fundraising ecosystem and how AI has transformed the composition of new companies as the talent, both on the engineering and business side, looks fundamentally different to the companies of yesterday.
As for startups, you’d have a harder time finding one that didn’t include AI. AI for your real estate portfolio, AI to optimize your ad delivery, AI to balance your finances, to write your newsletter, to generate a video, to find and hire talent, to speak to animals (not a joke).
Between sips of Google Cloud supplied bubble tea and a Hubspot for Startups tequila hangover, I grasped what Silicon Valley is - a microcosm obsessed with the commercialization of new technologies. AI is still the hot new thing.
Most of the startups appeared primarily concerned with engineering their companies to use hot AI technologies, rather than solve any specific human problems. AI is receiving all the funding now, so startup founders have pivoted to give investors what they want.
Yet, any brand expert will tell you, value destruction coincides with genericism. Last year, I wrote how AI has become generic. The genericism of AI hasn’t seemed to scare off investors as AI startup investment is expected to hit a record high this year (see chart below).
If everyone uses the same foundational models and anyone can code, make ads, or generate content with AI, then what makes anything unique? A question that Silicon Valley feels unprepared to answer.
3 Stories Shaping the Media and Tech Industries
The U.S. Department of Justice is reportedly investigating Disney's deal to license ESPN content to FuboTV, citing potential antitrust concerns. The probe centers on whether the agreement could reduce competition in the sports streaming market, especially as Disney prepares to launch its own direct-to-consumer ESPN service.
Why it matters: This underscores growing regulatory scrutiny of major media companies leveraging their content power in ways that may limit consumer choice and stifle emerging streaming competitors.
Top sports executives are convening in Washington, D.C., to discuss the evolving landscape of sports media rights amid significant industry shifts. This meeting occurs as major leagues like the NFL and NBA approach pivotal media rights negotiations, with the NFL's $111 billion deal containing opt-out clauses after the 2028-29 season, potentially allowing the league to restructure its broadcasting partnerships.
Why it matters: The outcome of these discussions could reshape the distribution of live sports content, influencing how fans access games and how media companies strategize in the face of increasing competition from tech giants.
The European Union has fined Apple and Meta a combined €700 million for violating the Digital Markets Act (DMA), marking the first major enforcement action under the new digital competition rules. Apple was penalized for restricting app developers from directing users to alternative payment options outside its App Store, while Meta's "pay or consent" model, which requires users to either pay for ad-free services or consent to data tracking, was deemed non-compliant with the DMA's provisions.
Why it matters: This development underscores the EU's commitment to curbing the dominance of Big Tech companies and promoting fair competition, potentially setting a precedent for how digital markets are regulated globally.
Creativ Spotlight - Erica Coates, President of MOCEAN, nominated for Agency Leader of the Year
Voting for ThinkLA’s IDEA awards is now open. Our wonderful partner Erica Coates, President of MOCEAN, is nominated for agency leader of the year. Please give her a vote in the link below.
Stat of the Week - Global Funding to AI, By Quarter
Wonder why every startup on the planet is an AI startup now? This chart illuminates why - access to capital. Investors have been primed to look for the next big AI winner, so a disproportionate amount of capital is flowing into this new technology.
One Fun Thing - Animal Speak with AI
Forgot primate sign language, scientists think they can generated a translator to speak with animals using a combination of sensors and artificial intelligence. Read this fascinating interview with Karen Bakker, professor of University of British Columbia and fellow at the Harvard Radcliffe Institute for Advanced Study on their work.