Dire wolves are so back.

The $20B bet.

Palantir's agent army.

 

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April 10, 2025

Talkin' shop

Hi there, 

 

Here is this week’s Hot or Not.

 

Hot: Shopify's AI mandate

 

AI isn’t optional at Shopify.

 

In a recently leaked internal memo, CEO Tobi Lütke said employees must first prove a task can’t be done using AI before requesting more resources or headcount. 

 

The company has also added “AI usage” questions to performance reviews.

 

It’s a top-down push that reflects Shopify’s broader strategy to embed AI across its operations — and to power the next phase of its growth.

 

In 2024, for instance, Shopify integrated with Perplexity AI’s commerce agent to enable in-platform browsing and checkout. It also partnered with AI search provider Coveo and introduced new personalization tools within its retail media offerings.

 

Next, Shopify will likely push deeper into agentic commerce — especially in areas like social media and gaming — and could look to acquire an AI startup to strengthen its personalization capabilities.

 

To see how Shopify has laid the foundation for its next move, get the full breakdown in our Shopify strategy map.

shopify strategy map-2

Not: Going extinct?

 

Colossal just made headlines by “resurrecting” the previously extinct dire wolf.

 

The biotech company says the pups are the first successfully de-extincted animals, thanks to a mix of ancient DNA, CRISPR edits, and dog surrogates.

 

But while the viral news cycle focused on the Game of Thrones-style optics, there’s a deeper reason for why the company let the dogs out.

 

Colossal is backed by In-Q-Tel, the CIA’s venture arm, which has been investing in synthetic biology platforms that could shape future biotech infrastructure — from on-demand drug manufacturing to biodiversity preservation and biological computing. 

 

Its investment in Colossal reflects growing interest in using genomic engineering for the purposes of national security resilience.

 

The goal isn’t just to bring species back — it’s to build the tools that could someday help respond to pandemics, genetic threats, or supply chain disruptions.

 

Read more about how Colossal fits into In-Q-Tel’s biotech strategy in this research brief.

IQT investment thesis map

Hot: a16z's $20B AI bet

 

Andreessen Horowitz is reportedly raising a $20B AI-focused fund — its largest ever — to double down on US-based growth-stage startups. 

 

The move extends its lead in a space it already dominates, with early bets on OpenAI, Databricks, xAI, Mistral, and Shield AI.

 

And the timing checks out.

 

In Q1’25, VC funding reached the highest level in nearly 3 years. Mega-rounds ($100M+) made up 70% of capital deployed, and AI alone drew more than half of total funding.

 

Why the flood of capital? 

 

Building frontier AI is expensive — and it’s commanding a premium. Median revenue multiples for AI companies hit 29.7x last quarter — 54.8x for LLM vendors.

 

As investor FOMO intensifies and capital needs climb, a16z is playing for an even bigger slice of the AI pie.

 

Go deeper on a16z’s new fund with our Head of Insights, Jason Saltzman.

image3-1

Get more on top investors and mega-round trends in our latest State of Venture report.

 

Not: One-size-fits-all AI

 

Instead of trying to out-build foundation model developers like OpenAI, Palantir is going all in on domain-specific agents.

 

The enterprise data & AI company is playing middleman — connecting top AI models like Claude and ChatGPT to sensitive enterprise data through its secure platforms, AIP and Foundry. 

 

It’s deploying an "army of agents" — designed for sectors like defense, healthcare, and supply chain — where regulation and complexity make off-the-shelf AI impractical.

 

And it’s working: In Q4’24, Palantir’s US commercial revenue jumped 64% YoY, and its customer base grew 73% over the same period.

 

As more companies hit limits with general-purpose tools, Palantir’s vertical strategy is looking increasingly defensible.

 

See how Palantir is deploying AI across defense, enterprise, industrial, and space tech in our newly published strategy map.

Palantir-SM-042025 final

The +1

worldwide wine consumption by country

Sip happens. Clear beats clever almost every single time.

 

I love you.

 

Anand

@asanwal 

Co-Founder & Exec Chair

 

P.S. If you’re still wondering about Tuesday’s top investor in AI defense tech — the answer (behind the blur) was General Catalyst.

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