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AI and Brainrot: Can Companies Monetize Online Distraction?

October 3, 2025
AI and Brainrot: Can Companies Monetize Online Distraction?

Government Shutdown and Startup Impacts

A U.S. government shutdown has commenced this week, marking the first such event in seven years. Although the immediate effects may not be widely felt, startups anticipating permits, visas, or regulatory clearances could face critical challenges, as even a short delay can threaten their viability.

Discussion on Equity Podcast

This week’s episode of Equity features Kirsten Korosec, Anthony Ha, and Max Zeff discussing the ways in which this uncertainty is impacting startups, often in unforeseen manners.

The conversation also delves into the complexities faced by AI companies as they strive to establish viable and sustainable business models.

Key Topics Explored

The podcast covers several significant developments, including:

  • The introduction of OpenAI’s Sora application, a TikTok-like platform showcasing AI-generated content, and an assessment of consumer willingness to subscribe to a continuous flow of synthetic videos.
  • The case of Tilly Norwood, an AI-generated actress, and the demonstration that even virtual performers can generate genuine controversy within the entertainment industry.
  • Periodic Labs’ substantial $300 million seed funding round, secured from investors like Andreessen Horowitz, Jeff Bezos, and Nvidia, to facilitate the development of AI scientists and the exploration of novel physics.
  • The implications of the U.S. government acquiring equity positions in companies such as Lithium Americas, MP Materials, and Intel, and the questions this raises regarding governmental involvement as a shareholder.

Equity, TechCrunch’s primary podcast, is produced by Theresa Loconsolo and is released every Wednesday and Friday.

Listeners can subscribe via Apple Podcasts, Overcast, Spotify, and other podcast platforms.

Follow Equity on X and Threads at @EquityPod for updates and further discussion.

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