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There's money to be made in AI startups that boost human connections, according to a VC

There's money to be made in AI startups that boost human connections, according to a VC

AI adoption is ramping up, opening opportunities for new consumer startups.
Menlo Ventures' recent "State of Consumer AI" report reveals categories the VC firm is eyeing.
Business Insider spoke with two partners at the firm about where Menlo is placing bets.
That's a question Menlo Ventures, a venture capital firm that's invested in companies like Uber, Tumblr, and Anthropic, wants to answer.
Connection is one of a handful of "white space opportunities" that Menlo Ventures is eyeing as fertile ground for new startups in consumer AI technology, according to the firm's recent "The State of Consumer AI" report.
Menlo Ventures and Morning Consult surveyed roughly 5,000 US-based adults in April about their feelings around AI and how they've used the tools within the past six months.
"Today, usage is dominated by these generalist AI systems," such as OpenAI's ChatGPT or Google's Gemini, Menlo Ventures partner Amy Wu Martin told Business Insider. "But we're seeing, starting with specific categories, this move into more specialized apps."
Menlo's research identified five broad categories where specialized AI apps are gaining traction: routine tasks, creative expression, physical and mental health, learning and development, and connection.
Dating, social networking, AI companions, and more
What falls under the connection umbrella?
One niche is dating. Menlo's market map of consumer AI tools highlighted AI-powered matchmaking apps like A16z Speedrun alum Sitch, Keeper, and Ditto. Then there are social networking apps that use AI agents to surface new people to meet, such as Gigi or professional-focused startups like Series or Boardy. Menlo also puts AI companions (think Character AI or Replika) and the turn-yourself-into-a-bot startup Delphi (a Menlo investment) under its connection thesis.
"People are starting to use AI as a bit of a crutch to actually figure out how to interact with people and feel less awkward," Martin said, pointing to examples of how people may use AI to prepare for a date or dinner party.
In addition to dating advice or social coaching, the technology can be a semi-social outlet in itself, enabling users to interact with AI-generated personas.
"The biggest gap in the AI connectivity is multiplayer mode," Martin said, referring to AI that facilitates and participates in group activities.
Social media has largely morphed into entertainment — propelled by the rise of influencers — instead of a place to foster real-life connections. Menlo thinks AI could help bring people together, especially in the still-untapped realm of multiplayer experiences.
"What is the tool that really just helps you be better in your relationships?" Menlo partner Shawn Carolan said. "I don't want more media coming my way. It's almost like the opposite of social media."
But people aren't running en masse to AI for connection just yet.
According to the report, only 14% of participants said they used AI for "staying in touch."
Investors are buzzing about consumer AI
A new crop of startups at the intersection of AI and social networking has stirred buzz with investors.
"We are trying to understand where the puck is going," Martin said. "The next phase, especially consumer, is around these specialized apps."
Menlo Ventures isn't the only firm betting on consumer AI applications.
Amber Atherton, a partner at early-stage consumer fund Patron, recently told BI about wanting to invest in startups that better help people find new relationships and maintain their existing ones.
Beyond connection, Menlo Ventures is also watching spaces like healthcare and wellness, financial management, personalized learning, home-related tasks, and family logistics as opportunities for startups.
Parents, for instance, are AI "power users," according to Menlo's survey.
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Faraday Future Founder and Co-CEO YT Jia Shares Weekly Investor Update: Company Has Received Over 10,000 Paid Pre-Orders for the FX Super One MPV as It Marks the 4th Anniversary of FFAI's Public Listi
Faraday Future Founder and Co-CEO YT Jia Shares Weekly Investor Update: Company Has Received Over 10,000 Paid Pre-Orders for the FX Super One MPV as It Marks the 4th Anniversary of FFAI's Public Listi

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LOS ANGELES--(BUSINESS WIRE)--Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) ('Faraday Future', 'FF' or the 'Company'), a California-based global shared intelligent electric mobility ecosystem company, today shared a weekly business update from YT Jia, Founder and Co-CEO of FF. 'This week marks the 4th anniversary of FFAI's public listing. Over the past four years, we've weathered countless ups and downs, pushed through our darkest hours, and stood firm in the face of doubts and challenges—never giving up. Above all, we are most grateful to the investors, stockholders, and partners who have stood by us. Your support is the reason our dream has never dimmed. As of the day of our July 17 Initial Product Launch of FX Super One, we have received over 10,000 paid pre-orders for this vehicle. Beyond the much-discussed Super EAI F.A.C.E., many people have asked me: what exactly are Super One's breakthroughs in product value for the U.S. market? 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When used in this press release, the words 'plan to,' 'can,' 'will,' 'should,' 'future,' 'potential,' and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the Super One MPV, Super EAI F.A.C.E., and EAI Embodied AI Agent 6x4 architecture, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. 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Faraday Future Founder and Co-CEO YT Jia Shares Weekly Investor Update: Company Has Received Over 10,000 Paid Pre-Orders for the FX Super One MPV as It Marks the 4th Anniversary of FFAI's Public Listing
Faraday Future Founder and Co-CEO YT Jia Shares Weekly Investor Update: Company Has Received Over 10,000 Paid Pre-Orders for the FX Super One MPV as It Marks the 4th Anniversary of FFAI's Public Listing

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LOS ANGELES--(BUSINESS WIRE)--Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) ('Faraday Future', 'FF' or the 'Company'), a California-based global shared intelligent electric mobility ecosystem company, today shared a weekly business update from YT Jia, Founder and Co-CEO of FF. 'This week marks the 4th anniversary of FFAI's public listing. Over the past four years, we've weathered countless ups and downs, pushed through our darkest hours, and stood firm in the face of doubts and challenges—never giving up. Above all, we are most grateful to the investors, stockholders, and partners who have stood by us. Your support is the reason our dream has never dimmed. As of the day of our July 17 Initial Product Launch of FX Super One, we have received over 10,000 paid pre-orders for this vehicle. Beyond the much-discussed Super EAI F.A.C.E., many people have asked me: what exactly are Super One's breakthroughs in product value for the U.S. market? To answer that, let's take a closer look at S2 and S3 Products & Technologies, where we've been carefully crafting. We've distilled five big breakthroughs in product value—these are what we believe give Super One its truly disruptive and differentiated edge in the U.S. market. First, it represents a whole new category—First Class EAI-MPV, addressing three key pain points for American users, including: Number one, traditional minivans may offer large interior space, but have poor power performance and safety, and offer no sense of luxury whatsoever. Number two, while the Escalade is luxurious, it's fundamentally constrained by its traditional, bulky SUV structure. This leads to a poor driving experience, inefficient use of space, and a compromised user experience overall. It's inconvenient to get in and out of and lacks the versatility for today's diverse lifestyles. Number three, let alone EAI capabilities, both of these vehicle types have almost zero AI capability and are stuck in a past era. We believe Super One is here to shatter old paradigms and deliver brand new value. Second, it is a vehicle EAI agent and an avatar of its owner. It redefines the human-vehicle relationship, moving from passive control to a partnership of mutual understanding and shared experience. It feels what you feel and accompanies where you go. Third, it delivers comprehensive intelligent active safety. Its high-strength steel body, electric AWD, and an AI risk prediction engine all work together to make every journey exceptionally safe and secure. Fourth, AI luxury and ultimate comfort like a private clubhouse, it breaks boundaries and sets new gold standards for luxury and comfort. Fifth, FF empowers the FX Super One with much of the core value of the $300,000 FF 91. With extreme price-to-performance ratio and running cost, it aims to bring accessible AI TechLuxury. 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We look forward to sharing these exciting plans and updates with you soon. Thank you to all our investors for your continued attention and support for FF and FX. We'll keep driving the company's growth with open and transparent communication. Today we're starting with Government affairs updates in terms of S7 System and Capability Build-Up. This week, we brought the FX Super One and FF 91 to Capitol Hill in Washington, D.C. There, we held high-level closed-door discussions with over a dozen U.S. Congress members and tariff policy makers. We talked about important topics such as reshoring U.S. manufacturing, technological innovation, and industry policies related to tariffs—efforts that support the implementation of the Global Automotive Industry Bridge Strategy. After experiencing both models in person, the Congress members were very impressed. We believe we will fill a key gap in the market, upgrading the American consumer experience, and helping accelerate the reshoring of manufacturing and the advancement of the entire industry chain. But really, after the FX Super One's initial launch, this is only the beginning. The next crucial steps will be product delivery, a series of certification tests, and trial production. I'll be leading the team to give it our all in this new chapter—continuing our relentless execution. In August, we'll also be taking the FX Super One to the Pebble Beach Concours d'Elegance, the luxury car events. This fulfills the promise we made there last August, and we'll be sharing new outcomes from our bridge strategy. For us, attending Pebble Beach every year is not just about showcasing our products, it's about demonstrating our unwavering belief in making the impossible possible. We welcome friends and partners who are interested in joining us. See you next week.' 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When used in this press release, the words 'plan to,' 'can,' 'will,' 'should,' 'future,' 'potential,' and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the Super One MPV, Super EAI F.A.C.E., and EAI Embodied AI Agent 6x4 architecture, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. 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You should carefully consider the foregoing factors and the other risks and uncertainties described in the 'Risk Factors' section of the Company's Form 10-K filed with the SEC on March 31, 2025, and other documents filed by the Company from time to time with the SEC.

US-China talks to restart as hopes grow for trade war truce extension
US-China talks to restart as hopes grow for trade war truce extension

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US-China talks to restart as hopes grow for trade war truce extension

The US and China are due to start a fresh round of talks on Monday as expectations grow that the world's two biggest economies could agree a 90-day extension to their trade war truce. The meetings in Sweden - led on Washington's side by Treasury Secretary Scott Bessent and for Beijing by Vice Premier He Lifeng - come hours after US President Donald Trump announced a framework tariffs deal with the European Union. The current 90-day truce between the US and China - which saw the two countries temporarily lowering tariffs on each other - is set to end on 12 August. Since Trump returned to the White House in January, the US and China had raised import levies on each other to more than 100%. The current 90-day tariffs pause came after top officials from the US and China met in Geneva and London earlier this year. Last week, Bessent said talks with China were in "a very good place" and suggested the new round of talks could result in a second truce. On Monday, citing sources on both sides, the Hong Kong-based South China Morning Post reported that the US and China are expected to extend the truce by another three months. The BBC has contacted the Chinese embassy in the US and the US Treasury Department for comment. The latest US-China talks come after Washington struck deals with both the EU and Japan in the last week. On Sunday, Trump and European Commission President Ursula von der Leyen announced a trade agreement framework. It ended a months-long standoff between two of the world's biggest economic partners. Last week, Trump said Washington had agreed a "massive" trade deal with Tokyo. Under the agreement, Japan would invest $550bn (£407bn) in the US while its goods sold to America would be taxed at 15% when they reach the country - below the 25% tariff Trump had threatened. The US has also struck tariffs deals with the UK, Indonesia and Vietnam. At 10%, Britain has negotiated the lowest US tariff rate so far. No similar breakthrough is expected from the US-China talks this week but, with expectations of an extension to their truce, there are hopes that global trade will not be hit by fresh tariffs disruption. Asia is reeling from Trump's tariff salvo – is anyone winning? What the US-Japan deal means for Asia and the world Sign in to access your portfolio

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