Tech
A robot on top of a pile of discarded robot parts
Getty Images

Three-quarters of founders in the latest Y Combinator cohort are working on AI startups

Riding a wave that’s created trillion-dollar companies, AI startups are hoping to stick out from the crowd

If you want to understand the extent to which artificial intelligence (AI) has gripped Silicon Valley, look no further than the latest cohort of Y Combinator.

For nearly two decades, Y Combinator has been America’s pre-eminent startup factory, churning out dozens of unicorns (startups worth > $1 billion) including Airbnb, Stripe, Coinbase, and DoorDash. Getting accepted into one of its bi-annual programs has become an aspiration for an entire generation of coders and founders, who subscribe to Y Combinator’s advice to “build something people want”.

And using AI has now become hard-coded into a majority of those ambitions. Of the 208 startups currently listed in the YC S24 startup directory, a staggering 156 or 75% — are working on AI-related products.

That’s more than any cohort in history, and it follows the news that nearly half of all US venture capital investment went to AI companies last quarter.

With stiff competition to get into Y Combinator, it’s unclear if that fact represents: Y Combinator deliberately selecting startups that are working in the space, more founders choosing to work in AI, or if more startups are actually just saying that their product is AI-related because they think that’s what investors or customers want to hear. It’s probably a combination of all three.

Share of Y Combinator startups working on AI
Sherwood News

So, what are all these companies trying to build? Well, there’s an AI-powered interior designer (Rastro), a GenAI interviewer for business interviews (Mindely), a “Conversational AI Sidekick for Kids” (Genie), a tool for making hit songs with AI (Sonauto), and a startup that wants to automate “taking orders at drive-thrus with a voice AI” (Lilac Labs).

Interestingly, you can track tech hype cycles throughout YC’s history. In 2022, when “Crypto / Web 3” was the hottest thing to work on, 33 YC startups were working in the space — in both of the most recent batches there was only 1.

More Tech

See all Tech
tech

Tesla’s 45 Austin Robotaxis now have 14 crashes on the books since launching in June

Since launching in June 2025, Tesla’s 45 Austin Robotaxis have been involved in 14 crashes, per Electrek reporting citing National Highway Traffic Safety Administration data.

Electrek analysis found that the vehicles have traveled roughly 800,000 paid miles in that time period, amounting to a crash every 57,000 miles. According to the NHTSA, US drivers crash once every 500,000 miles on average.

The article says Tesla submitted five new crash reports in January of this year that happened in December and January. Electrek wrote:

“The new crashes include a collision with a fixed object at 17 mph while the vehicle was driving straight, a crash with a bus while the Tesla was stationary, a collision with a heavy truck at 4 mph, and two separate incidents where the Tesla backed into objects, one into a pole or tree at 1 mph and another into a fixed object at 2 mph.”

Tesla updated a previously reported crash that was originally filed as only having damaged property to include a passenger’s hospitalization.

Last month, Tesla shares climbed after CEO Elon Musk said in a post on X that the company’s Austin Robotaxis had begun operating without a safety monitor.

The article says Tesla submitted five new crash reports in January of this year that happened in December and January. Electrek wrote:

“The new crashes include a collision with a fixed object at 17 mph while the vehicle was driving straight, a crash with a bus while the Tesla was stationary, a collision with a heavy truck at 4 mph, and two separate incidents where the Tesla backed into objects, one into a pole or tree at 1 mph and another into a fixed object at 2 mph.”

Tesla updated a previously reported crash that was originally filed as only having damaged property to include a passenger’s hospitalization.

Last month, Tesla shares climbed after CEO Elon Musk said in a post on X that the company’s Austin Robotaxis had begun operating without a safety monitor.

tech
Jon Keegan

Ahead of IPO, Anthropic adds veteran executive and former Trump administration official to board

Anthropic is moving to put the pieces in place for a successful IPO this year.

Today, the company announced that Chris Liddel would join its board of directors.

Liddel is an seasoned executive who previously served as CFO for Microsoft, GM, and International Paper.

Liddel also comes with experience in government, having served as the deputy White House chief of staff during the first Trump administration.

Ties to the Trump world could be helpful for Anthropic as it pushes to enter the public market. Its reportedly not on the greatest terms with the current administration, as the startup has pushed back on using its Claude AI for surveillance applications.

Liddel is an seasoned executive who previously served as CFO for Microsoft, GM, and International Paper.

Liddel also comes with experience in government, having served as the deputy White House chief of staff during the first Trump administration.

Ties to the Trump world could be helpful for Anthropic as it pushes to enter the public market. Its reportedly not on the greatest terms with the current administration, as the startup has pushed back on using its Claude AI for surveillance applications.

tech
Rani Molla

Meta is bringing back facial recognition for its smart glasses

Meta is reviving its highly controversial facial recognition efforts, with plans to incorporate the tech into its smart glasses as soon as this year, The New York Times reports.

In 2021, around the time Facebook rebranded as Meta, the company shut down the facial recognition software it had used to tag people in photos, saying it needed to “find the right balance.”

Now, according to an internal memo reviewed by the Times, Meta seems to feel that it’s at least found the right moment, noting that the fraught and crowded political climate could allow the feature to attract less scrutiny.

“We will launch during a dynamic political environment where many civil society groups that we would expect to attack us would have their resources focused on other concerns,” the document reads.

The tech, called “Name Tag” internally, would let smart glass wearers identify and surface information about people they see with the glasses by using Meta’s artificial intelligence assistant.

Now, according to an internal memo reviewed by the Times, Meta seems to feel that it’s at least found the right moment, noting that the fraught and crowded political climate could allow the feature to attract less scrutiny.

“We will launch during a dynamic political environment where many civil society groups that we would expect to attack us would have their resources focused on other concerns,” the document reads.

The tech, called “Name Tag” internally, would let smart glass wearers identify and surface information about people they see with the glasses by using Meta’s artificial intelligence assistant.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.