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Disney plus OpenAI: What could go wrong?

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Hello, Alexei Oreskovic pitching in for Allie today. Well folks, this week had it all: A new OpenAI model, reports of an upcoming SpaceX IPO, and even a Waymo baby! And to top it all off, OpenAI and Disney announced a surprise partnership that will include a $1 billion investment in OpenAI and enable OpenAI users to create AI-generated videos with Mickey Mouse and hundreds of other Disney characters.

The 3-year deal is a huge win for OpenAI (all the more so given that Disney simultaneously sent a cease-and-desist letter to Google, accusing the internet giant and OpenAI arch-rival of infringing its IP via its AI systems on a “massive scale”). The question is: Why is the Mouse House rolling out the red carpet for the ChatGPT maker? 

You don’t need a lot of imagination to guess the sordid scenarios that await Disney’s family-friendly cast of characters now that the tortured souls of the internet will have carte blanche to feed them into the AI nightmare machine. There will be safeguards in place to prevent Mickey and friends from doing drugs, fornicating, and engaging in other unseemly or illegal behavior, a source told the Wall Street Journal. And I’m sure absolutely no one will figure out how to bypass those guardrails.

Entertainment businesses need to stay ahead of the trends and make sure they’re relevant to the next generation of consumers, of course. So hooking up with OpenAI is an obvious way for a company to stay connected with the kids. But if there’s any company that would seem in less immediate danger of losing the kids, it’s the company with The Lion King, The Little Mermaid, Donald Duck, and Iron Man. 

This will certainly be an interesting adventure to watch. And perhaps Disney’s deal with OpenAI will prove prescient and astute. I just hope Donald can hold his liquor.

See you Monday,

Alexei Oreskovic
X:@lexnfx
Email:
alexei.oreskovic@fortune.com
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Venture Deals

Harness, a San Francisco-based AI-powered platform designed to ship code faster, raised $240 million in Series E funding. GoldmanSachs led the round and was joined by IVP, MenloVentures, and UnusualVentures.

Port, a Middletown, Del.-based AI agent designed to handle some software developer tasks, raised $100 million in Series C funding. General Atlantic led the round and was joined by Accel, BessemerVenturePartners, and Team8.

Serval, a San Francisco-based developer of AI agents designed for IT processes, raised $75 million in Series B funding. Sequoia led the round and was joined by Redpoint, Meritech, FirstRound, and others.

Medra, a San Francisco-based AI platform designed to accelerate data generation for scientists, raised $52 million in Series A funding. HunanCapital led the round and was joined by LuxCapital, Neo, NFDG, and others.

RelationalAI, a San Francisco-based enterprise decision intelligence platform, raised $22.5 million in funding from SnowflakeVentures and AT&TVentures.

HavenEnergy, a Los Angeles, Calif.-based solar and home battery tech company, raised $15 million in Series B funding. GiantVentures led the round and was joined by CaliforniaInfrastructureBank, CarnriteVentures, ChaacVentures, ComcastVentures, and LererHippeau.

Neosapience, the San Francisco-based developer of the Typecast platform for creating voice and video content designed to have emotional intelligence, raised $11.5 million in Series C funding. Intervest led the round and was joined by HBInvestment, K2Investment, and BokwangInvestment.

Skydo, a Bangalore, India-based payments platform for global exporters, raised $10 million in Series A funding. SusquehannaAsiaVentureCapital and ElevationCapital.

Subsense, a Palo Alto, Calif.-based developer of non-surgically invasive, nanoparticle-based brain-computer interfaces, raised $10 million in funding from GoldenFalconCapital.

Kilo, a San Francisco-based open source coding agent, raised $8 million in seed funding. CotaCapital led the round and was joined by Breakers, GeneralCatalyst, QuietCapital, and TokyoBlack.

OnMe, a San Francisco-based digital gifting platform, raised $6 million in seed funding. NFX led the round and was joined by existing investors LererHippeau and Focal.

Cyphlens, a New York City-based enterprise security platform, raised $3.8 million in seed funding from SalesforceVentures, MotivateVentures, DCG, ex/ante, and CambrianVentures.

Conveyd, a London, U.K.-based AI conveyancing platform, raised $3.3 million in seed funding. Eka Ventures led the round and was joined by PortfolioVentures and existing investor FoundersFactory and angel investors.

Realm.Security, a Boston, Mass.-based security data pipeline platform, raised $2 million in funding from PresidioVentures.

Private Equity

LongRidgeEquityPartners acquired a majority stake in OnCorpsAI, a Boston, Mass.-based agentic AI platform designed for fund operations, for $55 million.

Aretum, a portfolio company of RenovusCapitalPartners, acquired VeteransEngineering, a Rockville, M.D.-based IT modernization, cybersecurity, and cloud architecture company for mission-critical government programs. Financial terms were not disclosed.

Rentsync, backed by SilversmithCapitalPartners, acquired Spacelist, a Vancouver, Canada-based real estate listing marketplace. Financial terms were not disclosed.

Exits

PerimeterSolutions agreed to acquire MedicalManufacturingTechnologies, a Charlotte, N.C.-based provider of medical manufacturing solutions, from ArclineInvestmentManagement for $685 million.

ExperiGreenLawnCare, backed by WindPointPartners, acquired TurfMastersBrand, a Roswell, Ga.-based lawn care company, from CenterOakPartners. Financial terms were not disclosed.

Funds + Funds of Funds

SwishVentures, a Tel Aviv, Israel-based venture capital firm, raised $100 million for a new fund focused on companies in cybersecurity, infrastructure, and AI.

People

CoreInnovationCapital, a Los Angeles, Calif.-based venture capital firm, hired Michael J. Hsu as venture partner. He most recently served as Comptroller of the Currency.



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40% of Stanford undergrads receive disability accommodations—but it’s become a college-wide phenomenon as Gen Z try to succeed in the current climate

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The pandemic has shaken up college life for good: Since then, social media and AI have revolutionized classroom expectations, and the bar for landing a job after graduation has become impossibly high. Many are now questioning whether getting a degree was even worth it.

The ripple effect of those strains is already showing in campus accessibility offices,  where diagnoses of ADHD, anxiety, and depression are rising—and so are requests for extended time on coursework.

At Harvard, 21% of undergraduates received disability accommodations last year, an increase of more than 15% over the past decade, according to data published by the National Center for Education Statistics analyzed by the Harvard Crimson. Top schools like Brown, Cornell, and Yale reported similar numbers, roughly in line with national trends. But the increase is more pronounced at other institutions: 34% of students at UMass Amherst and 38% at Stanford are registered as disabled, according to The Atlantic

In the 2011-12 school year, the number of undergraduates with a disability was about 11%, based on U.S. Department of Education data—highlighting just how much of a dramatic shift this phenomenon has become.

One founder says students are trying to get a leg up in today’s tough job market

Experts note that many students have medical conditions that merit accommodations, and the increase is in part linked to broader access to mental-health care and reduced stigma around seeking support.

The rise has nonetheless drawn national attention, with some critics arguing that students are abusing the system to secure lighter workloads or an edge in hypercompetitive classrooms.

Derek Thompson, author of the recent bestseller Abundance called the numbers “mind-boggling,” arguing that colleges may be overcorrecting after years of underrecognizing disability. 

“America used to stigmatize disability too severely,” he wrote on X. “Now elite institutions reward it too liberally. It simply does not make any sense to have a policy that declares half of the students at Stanford cognitively disabled and in need of accommodations.”

Joe Lonsdale, a billionaire venture capitalist and Palantir cofounder, expressed similar concerns, suggesting some families are seeking diagnosis just to give students “a leg up.”

After all, the post-graduation job hunt has tightened into a numbers game few can win.

In 2023 and 2024, more than 1.2 million applications were submitted for just under 17,000 open graduate roles in the U.K., according to the Institute of Student Employers. And in the U.S., lawmakers warn the funnel is narrowing further. Sen. Mark Warner has warned that joblessness among recent graduates could hit 25% in the next two to three years, as AI reshapes entry-level work.

But in reality, there is no evidence of widespread misuse, and not all students registered with a disability receive accommodation in every class. Still, the scale of requests has raised questions among some faculty members about how accommodations intersect with academic expectations.

Faculty grapple with balancing support of students and avoidance of stigma

For instructors, the rise in accommodations can be challenging to navigate. Many say they want to support students with legitimate needs but worry that requesting clarification could be seen as insensitive or ableist.

One adjunct professor, posting to Reddit, said the number of students with accommodations has “increased exponentially” across the three schools where they teach.

“I had an increasingly large number of students at this particular school be given the accommodation to turn work in 48 hours late, and I got tired of constantly having to extend due dates for just them,” the professor wrote, noting that they themselves have ADHD and autism.

“The students I’ve had on this accommodation would use it pretty much every week since they were perpetually behind.”

Harry Lewis, former dean of Harvard College, expressed a related concern to the Harvard Crimson.

“The whole system of accommodations for things other than physical disabilities just seems badly mismatched with the educational purposes that students and faculty share,” he said.

However, Katy Washington, CEO of the Association of Higher Education and Disability, argued that students seeking accommodations are not “unfair burdens” on professors, and rather than questioning whether too many students qualify—which can perpetuate stereotypes—the focus should be on designing assessments that are inclusive for all learners.

“For decades, students with invisible disabilities were denied support because their struggles were dismissed as laziness or lack of effort,” Washington wrote in a letter to her organization’s members, shared with Fortune. “The rise in accommodations reflects a cultural shift toward acknowledging mental health, not a decline in academic integrity.”

A shifting skill-based job market could leave some students unprepared

For students, the increase in accommodations coincides with employers rethinking what actually matters in hiring. Fewer companies are prioritizing degrees, and more are evaluating on what they can do—through portfolio, projects, and real-world problem-solving.

Less than half of U.S. professionals at the director-level and above say a university degree is essential for getting ahead, according to LinkedIn. Moreover, nearly 1 in 5 job postings on the platform do not require a degree.

That shift could complicate the picture for students who’ve grown accustomed to extended deadlines or extra time. Whether a small number of students are abusing the system, workplace assessments typically don’t come with accommodations—and performance is often judged on speed, accuracy, and consistency.  Some Gen Zers have already faced the pink slip just months into the start of their career due to employers being unimpressed with some of their soft skills, like organization.

In other words: even as college becomes more flexible, the job market is moving in the opposite direction.



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Black Lives Matter leader in Oklahoma City indicted on claims she used funds for vacations, groceries and real estate

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A federal grand jury indicted the leader of the Black Lives Matter movement in Oklahoma City over allegations that millions of dollars in grant funds were improperly spent on international trips, groceries and personal real estate, prosecutors announced Thursday.

Tashella Sheri Amore Dickerson, 52, was indicted earlier this month on 20 counts of wire fraud and five counts of money laundering, court records show.

Court records do not indicate the name of Dickerson’s attorney, and messages left Thursday at her mobile number and by email were not immediately returned.

According to the indictment, Dickerson served since at least 2016 as the executive director of Black Lives Matter OKC, which accepted charitable donations through its affiliation with the Arizona-based Alliance for Global Justice.

In total, BLM OKC raised more than $5.6 million dating back to 2020, largely from online donors and national bail funds that were supposed to be used to post bail for individuals arrested in connection with racial justice protests after the killing of George Floyd by a Minnesota police officer in 2020, the indictment alleges.

When those bail funds were returned to BLM OKC, the indictment alleges, Dickerson embezzled at least $3.15 million into her personal accounts and then used the money to pay for trips to Jamaica and the Dominican Republic, retail shopping, at least $50,000 in food and grocery deliveries for herself and her children, a personal vehicle, and six properties in Oklahoma City deeded to her or to a company she controlled.

The indictment also alleges she submitted false annual reports to the alliance stating that the funds were used only for tax-exempt purposes.

If convicted, Dickerson faces up to 20 years in federal prison and a fine of up to $250,000 for each count of wire fraud and 10 years in prison and fines for each count of money laundering.

In a live video posted on her Facebook page Thursday afternoon, Dickerson said she was not in custody and was “fine.”

“I cannot make an official comment about what transpired today,” she said. “I am home. I am safe. I have confidence in our team.”

“A lot of times when people come at you with these types of things … it’s evidence that you are doing the work,” she continued. “That is what I’m standing on.”

The Black Lives Matter movement first emerged in 2013 after the acquittal of George Zimmerman, the neighborhood watch volunteer who killed 17-year-old Trayvon Martin in Florida. But it was the 2014 death of Michael Brown at the hands of police in Ferguson, Missouri, that made the slogan “Black lives matter” a rallying cry for progressives and a favorite target of derision for conservatives.

The Associated Press reported in October that the Justice Department was investigating whether leaders in the Black Lives Matter movement defrauded donors who contributed tens of millions of dollars during racial justice protests in 2020. There was no immediate indication that Dickerson’s indictment is connected to that probe.



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Hinge CEO bribed students with KitKats to get the $550 million-a-year business off the ground

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After more than a decade shaping modern romance, Justin McLeod is leaving Hinge behind to launch his next venture: Another dating app, with an AI twist, called Overtone.

Today, Hinge has more than 30 million users, with a date being set up every two seconds. But in 2011, when it launched, McLeod was just a young Harvard Business School student when he came up with the idea for the app “designed to be deleted.” And the fresh-faced, 20-something entrepreneur was so desperate for people to sign up to his app that he even bribed them with chocolate.

At the time, online dating largely took place on desktops and required real effort. The idea of swiping to find the love of your life (or a one-night stand) on your mobile phone seemed alien.

So convincing fellow students (who had no shortage of opportunities to meet people in class, dorms, and parties) to sign up to Hinge was challenging, McLeod tells Fortune.

“I remember the days of running around the college library in Washington, D.C., at this college, Georgetown, and bribing kids with KitKats to come try my app,” he laughs. “We would get dozens of users a day—maybe, if that.” 

Financing Hinge also required a lot of scrappiness, with McLeod recalling he had to “beg and borrow a lot” to get the app off the ground.

“I was out there networking and talking to as many people as I could and taking money from anyone who would give it to me. That’s just what it takes sometimes,” he says. “I was collecting—me—literally like, $5,000 checks and $10,000 checks to come and start Hinge.”

Hinge CEO’s big break came from a McKinsey job offer

These days, it’s hard enough landing an internship while studying—let alone walking straight into a full-time job right after graduating. But for McLeod, that wasn’t the case: He hadn’t even finished his second year of business school when McKinsey offered him a spot on its coveted grad scheme. 

A career in consulting would have set McLeod on a path to a six-figure salary, with Glassdoor estimating that the average consultant earns between $173,000 to $233,000 a year. McLeod’s sign-up bonus alone was $12,000.

It turned out to be the big break he needed—to finally get Hinge off the ground.

“I was able to keep putting off my offer for like a couple of years,” he recalls while adding that he “borrowed” the money to build his app.

“Once Hinge started to become successful and they saw I was the founder of it, they were like, ‘You’re probably not coming to be an analyst here are you?’ And, of course, by that time I had to pay it back.”

Why did McLeod choose the highly risky path of entrepreneurship when he could have had a comfortable career at McKinsey?

“I turned down my offer and started to work on Hinge, really because I was just so passionate about the idea. Once I started thinking about it, it was hard for me to stop. I really knew this was what I was meant to work on.”

Of course, it paid off: By 2015, Hinge had raised $26.35 million and had an estimated valuation of $75.5 million, before Match Group bought the company off McLeod for an undisclosed amount. 

The founder treated himself and his family to a nearly $13 million apartment in New York soon after. Meanwhile, Hinge brought in $396 million in 2023, last year and an estimated $550 million last year.

Advice for entrepreneurial Gen Z grads

Like McLeod, young people today aren’t dreaming of holding down a 9-to-5 gig after college or climbing the corporate ladder. Research consistently shows they want to be their own boss.

And they’re already making those dreams a reality: In fact, the second fastest-growing job title among Gen Z grads right now is “founder,” according to LinkedIn.

His advice for young entrepreneurs? “You have to be hopelessly idealistic and ruthlessly practical at the same time—that’s how you create something big and successful.”

“Some people who are like too in the hopelessly idealistic camp, dream, but never make something a reality, and people who are too in the ruthlessly practical camp do things but nothing that big or game-changing,” McLeod explains.

Instead, he says successful founders like himself constantly balance the two: Essentially dream big, but “pay attention to the very practical day-to-day realities in order to make that come to life.”

Meanwhile, to Gen Zers who don’t know what they want to do career-wise after school, his advice is to stop overthinking it—just give work a go, whether that’s starting your own business or dipping your toes in the rat race.

“I think people who get too self-involved in, like, what’s my career going to be? What am I going to do? They miss the opportunity to cultivate that passion, that interest for something out there in the world,” he says.

“I would never have figured out what I wanted if I just sat around like meditating about it. I had to work a summer in healthcare and realize that’s not it. I worked on a few other startup ideas before Hinge came to me and it was a lot of figuring out what I didn’t like or what didn’t resonate with me. But each time, I got a little bit smarter and a little bit closer.”

A version of this story originally published on Fortune.com on September 22, 2024.



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