Automattic’s war with WP Engine heats up, Masa hits up AI for investment ideas, and everybody wants to be a celebrity

Startup Battlefield: Automattic Wages War, AI Funding Heats Up, and Gen Z Chases Side Hustles This briefing analyzes key themes and insights from the October 4th edition of StrictlyVC, a newsletter covering venture capital and startup news. Main Themes: Automattic vs. WP Engine: Automattic, the company behind WordPress, is aggressively targeting competitor WP Engine, sparking internal dissent and legal action. AI Investment Surge: AI continues to attract significant funding, with CoreWeave securing a multi-billion dollar valuation and startups like Voyage AI and Clout Kitchen raising substantial capital. Fundraising Challenges & Alternative Avenues: While fundraising remains difficult for many, companies like EnergyX are exploring alternative avenues, including engaging retail investors. Gen Z Trends: The newsletter highlights Gen Z's entrepreneurial spirit, showcasing their pursuit of side hustles like Airbnb arbitrage and their influence on platform redesigns like Facebook's recent efforts. Key Takeaways & Notable Facts: Automattic’s Internal Conflict: Over 150 Automattic employees (8% of staff) have accepted an "Alignment Offer" to leave the company following CEO Matt Mullenweg's decision to challenge WP Engine. Mullenweg's aggressive stance includes legal action and strong public criticisms, likening WP Engine to "Al Capone." AI's Dominance in Funding: CoreWeave's massive secondary share sale, valuing the AI infrastructure provider at $23 billion, underscores the sector's continued appeal. Other AI startups like Voyage AI (focused on reducing AI hallucinations) and Clout Kitchen (developing AI-powered tools for gamers) also secured significant funding. EnergyX’s Retail Investment Strategy: EnergyX, a lithium extraction technology company, successfully raised $75 million from retail investors. CEO Teague Egan emphasizes the benefits of "democratizing investment" and reducing reliance on traditional VCs. Gen Z's Impact on Tech: From Airbnb arbitrage as a side hustle to influencing Facebook's redesign, Gen Z's preferences and behaviors are increasingly shaping the tech landscape. Notable Quotes: Matt Mullenweg on WP Engine: “We’re using that legal avenue to really, yeah, pressure them. That’s true: we are pressuring them.” Teague Egan on Retail Investors: “[This offering] democratizes investment… [and] takes some of the power away from traditional VCs that always want to beat you down for terms.” Other Highlights: Masayoshi Son, CEO of SoftBank, predicts computers will be 10,000 times more intelligent than humans within a decade. Mark Zuckerberg's growing wealth and potential foray into the T-shirt business. Airbnb arbitrage emerges as a popular side hustle among Gen Z. The increasing "celebritization" of travel, with ultra-wealthy individuals demanding celebrity-level perks. Overall, the StrictlyVC newsletter paints a picture of a dynamic tech landscape shaped by fierce competition, AI's continued rise, and the evolving priorities and behaviors of Gen Z.