Marissa Mayer Shuts Down AI Startup, Transfers Assets

Sunshine Startup Transitions Assets to Dazzle AI Venture

Marissa Meyer, previously the CEO of Yahoo, is preparing to cease operations of her consumer software company, Sunshine. The company’s resources are being transferred to Dazzle, a newly established artificial intelligence startup.

This information was initially disclosed by Wired, referencing a communication distributed to Sunshine’s investors.

Dazzle's Focus: An AI Personal Assistant

According to sources familiar with the matter, Dazzle is dedicated to the development of an AI-powered personal assistant. The transition will involve the complete relocation of Sunshine’s workforce to the new venture.

Approval for this arrangement has been secured from the vast majority of Sunshine’s investors, including Norwest Venture Partners, Felicis Partners, and SV Angel.

Sunshine's History and Challenges

Founded in 2018, Sunshine initially introduced “Sunshine Contacts,” a subscription-based application designed for contact management. However, the product experienced limited uptake, largely attributed to user apprehensions regarding data privacy.

In 2024, the service expanded to incorporate event management and photo sharing functionalities, integrating AI elements. Despite these additions, the apps collectively garnered only slightly over 1,000 downloads from the Google Play Store.

Funding and Self-Funding

The company successfully secured approximately $20 million in funding during 2020. Meyer has stated that, beyond this initial investment, the company was primarily sustained through self-funding.

Sunshine’s initial concept struggled to gain traction, and the company is now pivoting its focus towards the burgeoning field of artificial intelligence.