Big Tech Companies Announce Shift to AI-Enabled Advertising

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
Big Tech Companies Announce Shift to AI-Enabled Advertising
Evan Xie

This is the web version of dot.LA’s weekly newsletter. Sign up to get the latest news on Southern California’s tech, startup and venture capital scene.


AI-enabled technology continued creeping into every aspect of our daily lives this week. A viral TED Talk features an early prototype for a wearable AI assistant. Alphabet merged its internal β€œGoogle Brain” team with DeepMind, the company it acquired in 2014, to significantly accelerate progress on AI research. Meanwhile, Elon Musk took some time away from having the WORST. 4/20. EVER. to talk up his latest AI project, a bot called TruthGPT that will investigate the meaning of life.


Nonetheless, Google still somehow managed to find a new way to generate a few headlines with yet another new integration for AI technology. According to a report from The Financial Times, Alphabet plans to use generative AI to create new kinds of original advertising across all of its various platforms. The same Large Language Model (LLM) that powers the Bard chatbot, along with some of the AI features available in Gmail and Google Workspace, will now develop ads and even whole ad campaigns for the company’s various platforms, including YouTube, Maps, Gmail, and even search result pages.

We’re not talking text-to-video here, exactly. Alphabet won’t just be writing simple prompts and letting the software design an entire campaign from there. Instead, sponsors and clients will supply Google with β€œchunks” of content related to their product offering, including images, video clips, and written copy. The bot will then β€œremix” all of these materials into an original ad, customized and fine-tuned around various Alphabet platforms and services.

The new AI ads will be integrated into a mysterious Google beta program known as β€œPerformance Max.” First introduced in late 2020, Performance Max is designed to maximize ad efficiency and reach across all Google platforms, and treats the company’s entire suite of products and services holistically, as a single advertising channel.

That means sponsors don’t decide whether they want their ads to appear on Google search pages or within Google Maps results or even ahead of YouTube videos. They just sign up, provide sales and CRM data, upload creative assets, lay out their budgets and the type of conversions they’re looking for, and allow Performance Max to do the rest. It’s something of a black box, focused on results but giving advertisers less granular control over their campaigns.

As Google executive Sean Downey explained to Digiday this week, Performance Max remains focused on β€œoutcome and optimization,” giving advertisers fewer options because β€œtoo many constraints around their campaigns can actually hinder that goal.” Nonetheless, the addition of AI bots – which also work in mysteriously inexplicable ways behind the scenes – to an already obscured system is a bit like putting a black box inside another black box. Google is falling back on years of built-up trust from brands here.

AI and AI-like systems have long been employed by the advertising industry, which relies on a large amount of number-crunching to guess at what kinds of messaging are going to reach the most receptive audiences across various platforms. It’s nearly impossible for human analysts to compete with software when it comes to comparing so many variables – from audience to device to time of day, context, performance, and so on – across so many different platforms. AI-enabled systems are also more dynamic, and can respond to shifts in user behavior or traffic in real time, making them particularly useful for launching and maintaining ad campaigns and maximizing their effectiveness. So it’s perhaps unsurprising that companies like Alphabet plan to expand their integration behind-the-scenes.

The notable shift is in making this AI output public-facing. Rather than relying on bots to design and run ad campaigns written and planned out by humans, Google will now have the bots actually writing the copy and producing the finished videos themselves. It’s sure to save the sponsors money, down the road, and perhaps also increase efficiency, while likely also costing some human copywriters and marketing executives their jobs.

Google’s not alone, either, in exploring the various ways AI software can assist its advertising business. Earlier this month, Meta announced plans to use generative AI to create new kinds of advertising for its various platforms. Microsoft also has plans to utilize technology developed by its in-house division, ChatGPT creators OpenAI, to improve and fine-tune its ad business. The company has been testing ads embedded in Bing AI chatbot responses since February, though it has declined to report how many users have actually seen or interacted with the ads. (These links aren’t marked as ads within the Bing AI chat conversations, though an ad icon appears if a user hovers over the link.) Microsoft is also playing around with photo and video ads for Bing chats.

California startup Creative.ai is trying to bring a similar kind of system to independent video game designers. Founder and CEO Athar Zia explained to Forbes last week that, once a video game developer identifies an ad type that works well to promote their game, they then must invest a lot of their time producing β€œendless imitations and iterations” of that ad for various platforms and app stores. The company’s technology, on the other hand, analyzes successful gaming ads and then replicates them automatically for new products.

Whether there will be room in the AI-enabled advertising world for up-and-comers remains to be seen. Regardless, farming out some – if not all – of the work involved in mounting a campaign to digital ad managers seems all but inevitable at this point. The apps can keep an eye on progress across multiple platforms, 24 hours a day, and they go through a lot fewer bottles of whiskey and orders of Clams Casino than the Mad Men.

Subscribe to our newsletter to catch every headline.

πŸš€ Inversion Secures $44 Million to Pioneer On-Demand Delivery from Space

πŸ”¦ Spotlight

Happy Friday, LA!

This week, Southern California's thriving space tech scene celebrated another milestone as Inversion, an El Segundo-based startup, announced a $44 million Series A funding round. The investment, co-led by Spark Capital and Adjacent, with participation from Kindred Ventures, Lockheed Martin Ventures and Y Combinator, underscores the growing appetite for innovative solutions in aerospace, logistics, and beyond. To date, they’ve raised $54 million, including a $10 million seed round in 2021. In September, they also secured a $71 million STRATFI agreement with the Space Force’s SpaceWERX to develop reentry vehicles for military applications, funded through a mix of government and private investment.

Image Source: Inversion

Inversion is pioneering a new frontier: reusable vehicles capable of rapidly returning payloads from orbit to Earth. Their "Earth Return Capsules" are designed to deliver within as little as an hour, enabling everything from rapid-turnaround experiments in microgravity to the delivery of critical medical supplies across the globe.

Building on this vision, a key focus for Inversion, as noted by SpaceNews, is the development of Arc, a reentry vehicle designed to provide "precision delivery on-demand" from space to Earth. With its first flight planned for 2026, the company is using the Series A funding to move Arc through its full product cycle, including design and development. This funding will also support Inversion's growth from its current 25 employees to a team of around 70, as well as their move into a new facility. Co-founder and CEO Justin Fiaschetti emphasized that the funding is sufficient to bring Arc through its inaugural flight.

Adding to the excitement, Inversion recently achieved a critical regulatory milestone in October by receiving a re-entry license from the Federal Aviation Administration (FAA). This license is a pivotal step in their journey, allowing the company to safely and legally return payloads from orbit to Earth. It positions Inversion among a select group of companies capable of operating in this emerging sector and demonstrates their readiness to bring the concept of space-based logistics into reality.

This isn’t just a win for Inversionβ€”it’s a win for the Los Angeles aerospace ecosystem, which continues to attract top-tier talent and funding. With giants like SpaceX and Relativity Space already calling the region home, Inversion is further cementing LA’s status as the nation’s space tech hub.

As Southern California continues to lead the way in space innovation, Inversion is one to watch. Their vision for merging cutting-edge aerospace technology with real-world logistics solutions may not just change how we view spaceβ€”it might transform how we interact with it.

Stay tuned for more updates from LA’s tech and startup scene. For now, keep your eyes on the skiesβ€”Inversion is bringing them closer to Earth.


🀝 Venture Deals

LA Companies

  • Seen Health, a company enhancing healthcare for seniors, has raised a $22M Series A funding round led by 8VC to support the opening of its first center in California and drive the development of the company’s technology. - learn more
LA Venture Funds
  • Theory Forge Ventures participated in a $30M Seed funding round for San Francisco-based Wordware, a startup developing a full-stack operating system for AI development that enables users to create sophisticated AI agents using natural language; the funds will be used to expand their platform and accelerate growth. - learn more
  • Clocktower Ventures participated in the most recent funding round for OpenYield, a New York-based company revolutionizing bond trading with its automated, equity-like marketplace, bringing the company's total funding to $7M to date. - learn more
  • Bonfire Ventures led a $4.25M Seed funding round for KeySavvy, a Seattle-based platform that simplifies and secures private-party car transactions; the funds will be used to expand their operations and engineering team, support new partnerships, enhance platform automation, and launch a fast-financing product for buyers. - learn more
  • Aliment Capital led a $42M Series C funding round for OneRail, an Orlando-based company specializing in last-mile delivery logistics software; the funds will be used to enhance their platform's capabilities and expand market reach. - learn more
  • UP.Partners led a $7M second-extension Series A funding round for Teleo, a Palo Alto-based company specializing in autonomous construction equipment; the funds will be used to expand their product offerings and accelerate market adoption. - learn more
  • Alexandria Venture Investments participated in a $30M Seed funding round for Valora Therapeutics, a San Diego-based biotechnology company developing novel immunotherapies using their proprietary AbLec platform; the funds will be used to advance their research and development efforts, optimize the platform, and progress AbLec therapeutics toward clinical trials. - learn more
  • Progression Fund participated in a $1.5M Pre-Seed funding round for GetMyHome, a Redondo Beach-based real estate service provider that offers a full rebate of seller-paid agent commission fees, charging clients a flat fee for the services they need, and employs agents who receive flat-fee compensation to help clients secure their dream homes without the incentive to push for overbidding. - learn more
  • Hyperlink Ventures participated in a $33M Series B funding round for Selector, a Santa Clara-based company specializing in AI-driven solutions that provide comprehensive visibility and intelligence for complex networks, infrastructure, and applications; the funds will be used to accelerate the development of their AIOps, Large Language Model (LLM), and Digital Twin technologies, as well as to expand their global presence. - learn more
  • Bonfire Ventures and Impulsum Venture Colab participated in a $5.25M Seed funding round for CalmWave, a Seattle-based health-tech startup specializing in reducing non-actionable ICU alarms to alleviate clinician fatigue; the funds will be used to boost market growth and expand partnerships with GPO channels like Premier, Inc. and Partners Coop. - learn more
  • Wavemaker 360 participated in a $14.5M Seed funding round for Citizen Health, a San Mateo, CA-based company with an AI-powered consumer health platform designed to support individuals managing rare and complex conditions; the funds will be used to enhance their platform and advance research in rare disease drug development. - learn more
  • B Capital led a $25M Series A funding round for Synapticure, a Chicago-based virtual care company specializing in neurodegenerative diseases; the funds will be used to expand partnerships, invest in technology, accelerate clinical research, and scale their medical group to enhance care for patients and caregivers nationwide. - learn more
  • Amboy Street Ventures and Emmeline Ventures participated in a $16M Series A funding round for Alloy, a New York-based menopause care startup that offers personalized treatments, including hormone therapy and symptom management, through telemedicine consultations and home delivery of medications. - learn more
  • Morpheus Ventures participated in a $28M Series A funding round for Goodstack, a SaaS and fintech platform that helps businesses integrate charitable giving, and the funds will be used to expand services for corporates, build technology for nonprofits, and hire across the team in 2025. - learn more
  • Trousdale Ventures participated in a Series B funding round for Anello Photonics, a Santa Clara, CA-based company specializing in silicon photonic optical gyroscopes (SiPhOGβ„’); the funds will be used to improve navigation and positioning in GPS-denied environments for industrial and defense uses. - learn more
  • Cultivate Next participated in a $30M Series B funding round for Plantible Foods, a San Diego-based biotechnology company that creates sustainable, plant-based protein ingredients, starting with Rubi Proteinβ„’ from the aquatic plant Lemna, will use its investment to expand manufacturing at its first commercial plant, "The Ranchito," a 100-acre facility in West Texas. - learn more
  • Bonfire Ventures led a $4M Seed funding round for Mithrl, a San Francisco-based company providing an AI-powered platform to accelerate scientific research; the funds will be used to expand their go-to-market team and further develop the platform. - learn more
  • Upfront Ventures led a $15M Seed funding round for BrightAI, a San Francisco-based company specializing in AI-powered sensor technology for real-time monitoring across various industries; the funds will be used to enhance their technology and meet growing customer demand. - learn more

      LA Exits

      • Brainjolt, a Pasadena-based digital media company that creates and curates engaging content across various platforms and reaches millions of users monthly, has been acquired by Centerfield. - learn more

              Download the dot.LA App

              What’s New from Waymo πŸš—Β and Snapchat πŸ‘»

              πŸ”¦ Spotlight

              Happy Friday, LA!

              Image Source: Waymo

              In case you’ve been cooped up indoors or haven’t had a chance to leave the office this week, you might have missed the latest buzzβ€”Waymo’s self-driving cars are now cruising all over LA! That’s rightβ€”Waymo One, the autonomous ride-hailing service, has officially expanded citywide, now covering nearly 80 square miles of Los Angeles. After months of testing and a waitlist, Angelenos can now book rides 24/7 in areas stretching from Santa Monica to Hollywood to the USC neighborhood. Early feedback has been overwhelmingly positive, with passengers rating the service 4.7/5. Riders are praising the smooth, safe experienceβ€”making it a game-changer for getting around the city, whether it’s for work, errands, or leisure.

              Image Source: Snap

              Meanwhile, Snapchat is stepping up its game with new features in its Family Center designed to boost family safety and connectivity. Parents can now request their teens' live location on Snap Map, stay informed about their location-sharing settings, and set travel notifications to get alerts when family members arrive or depart from key locations like home or school. These updates give families more control and peace of mind in managing their digital interactions.


              🀝 Venture Deals

              LA Companies

              • Camouflet, an AI-driven platform specializing in real-time pricing optimization, has raised a $3M Seed funding round from private investors to enhance its services. - learn more
              • Chaos Industries, a defense tech company specializing in advanced detection and monitoring systems, raised a $145M Series B funding round led by Accel to accelerate its development of critical national security technologies. - learn more
              • Radiant, a company specializing in advanced nuclear microreactors, raised a $100M Series C funding round led by DCVC. The funds will be used to complete the Kaleidos Development Unit and conduct testing at Idaho National Laboratory's DOME facility, aiming to bring factory-built microreactors to market. - learn more
              • Mundial Media, a company focused on contextual marketing for multicultural audiences, raised a $1.5M Pre-Seed extension round led by new and existing investors, with the funds aimed at advancing their Cadmus AI technology and expanding digital advertising offerings. - learn more

              LA Venture Funds
              • Joyful Ventures participated in a seed funding round for Meatly, a UK-based company specializing in lab-grown pet food, though the exact amount raised has not been disclosed. - learn more
              • B Capital participated in a $200M Series C funding round for Writer, a full-stack generative AI platform that helps enterprises deploy secure and reliable AI solutions to address critical business challenges. - learn more
              • LFX Venture Partners participated in a US$30M Series C2 funding round for UniUni, a company transforming last-mile delivery for e-commerce through technology, and plans to use the capital to improve its platform and rapidly grow its operations. - learn more
              • Composition Capital participated in a $20M Series B funding round for Arbolus, an expert insights platform that connects investors and consultants with subject matter experts, to support Arbolus's expansion into the U.S. market - learn more
              • Type One Ventures co-led a Series A funding round for Lunar Outpost, a company specializing in lunar surface mobility, commercial space robotics, and space resources; the funds will support their active programs. - learn more
              • Trousdale Ventures participated in a $29M funding round for Starfish Space, a Seattle-based satellite servicing company that will use the funds to develop and launch its Otter spacecraft, designed to extend the operational life of satellites in geostationary orbit. - learn more
              • Plus Capital participated in a $20M Series A funding round for OneSkin, a San Francisco-based biotech company specializing in skin health treatments, with the funds aimed at expanding research, developing new formulas, and growing its presence in the anti-aging skincare industry. The company will also invest in its team and explore new sales channels. - learn more
              • Starshot Capital participated in a $10.5M Series A funding round for Ecolectro, a New York City-based green hydrogen company, to support the development of its scalable electrolyzer technology and make green hydrogen more accessible. - learn more
              • Navitas Capital participated in a $37M Series B funding round for SwiftConnect, a company that provides connected access solutions for buildings and spaces, to expand its network, scale operations, and support new product initiatives. - learn more
              • Griffin Gaming Partners led a €17M Seed funding round for BIT ODD, a Finnish gaming studio focused on creating mobile games that prioritize creativity and emotional depth over finance-driven metrics. - learn more
              • The K Fund participated in a $20M funding round for Homethrive, a caregiving solutions platform, and the funds will be used to help expand its AI-driven care navigation, improve personalized support, and enhance digital tools to increase engagement across various payer populations. - learn more

                    LA Exits

                    • Farm Dog, a Los Angeles-based company that provides a platform with tools to help agronomists streamline their workβ€”offering features for field scouting, document management, and data integration to enhance productivity in agricultureβ€”has been acquired by FarmQA. - learn more

                            Download the dot.LA App

                            Wonder Dynamics: Redefining the Animation Landscape
                            Wonder Animation

                            πŸ”¦ Spotlight

                            Happy Friday, LA!

                            Wonder Dynamics, a Los Angeles-based company founded by Tye Sheridan and Nikola Todorovic, has launched Wonder Animation, a beta feature that is poised to transform the landscape of video production. Acquired by Autodesk in May, Wonder Dynamics is leveraging this innovative tool, which harnesses artificial intelligence to turn standard video footage into captivating 3D animated scenes, making sophisticated animation techniques more accessible to filmmakers of all budgets.

                            Wonder Animation allows creators to shoot from multiple angles, with the AI reconstructing these shots into a dynamic 3D space. This functionality enables filmmakers to seamlessly blend live-action scenes with interactive virtual environments while preserving original camera movements. Users can customize various aspects, including animations, characters, lighting, and camera tracking data, and the tool integrates smoothly with popular software like Maya, Blender, and Unreal Engine.

                            What sets Wonder Animation apart is its emphasis on artistic control. Unlike many AI tools that impose rigid outcomes, this feature empowers creators to guide their projects, ensuring that their unique style remains front and center.

                            As the boundary between video and 3D animation blurs, Wonder Animation invites creators to experiment and innovate in exciting ways. This development marks a significant step forward in digital storytelling, democratizing access to high-quality visual effects and making sophisticated animation achievable for a broader range of filmmakers.

                            With the global animation market projected to reach approximately $400 billion in 2024 and grow to over $587 billion by 2030β€”reflecting a compound annual growth rate (CAGR) of about 5%β€”tools like Wonder Animation are more relevant than ever. This growth underscores the increasing demand for animated content and highlights the necessity of innovative solutions to meet filmmakers’ evolving needs. For those looking to elevate their storytelling, Wonder Animation may just be the key to unlocking new creative horizons. According to Statista, this upward trend in the animation market emphasizes the significant opportunities ahead.


                            🀝 Venture Deals

                            LA Companies

                            • Evite, an online platform enabling users to design, send, and manage digital invitations and eCards with tools for event organization and guest tracking, has received a strategic growth investment from Francisco Partners to accelerate innovation and expand its product offerings. - learn more
                            LA Venture Funds
                            • F4 Fund participated in a $4.1M Pre-Seed funding round for Further, a platform designed to help first-time homebuyers determine how much home they can afford by providing personalized insights on interest rates and lender requirements, giving users a clear view of their purchasing power. - learn more
                            • Alexandria Venture Investments participated in a $10M Seed funding round for CrossBridge Bio, a company focused on developing advanced dual-payload antibody-drug conjugate (ADC) therapies, with the funds supporting preclinical development of its next-generation cancer treatments. - learn more
                            • Clocktower Ventures participated in a $5.6M Series A funding round for Morada Uno, a startup in Mexico focused on making apartment rentals easier by providing a platform that connects tenants with landlords and simplifies processes like lease agreements and rent payments. - learn more
                            • Skyview Capital participated in a $5M Series A funding round for Web3 chain game A-World, a tower defense battle game set in the metaverse on the BNB Chain, where players build hero towers to defeat waves of monsters. - learn more

                                LA Exits

                                • Drive Hospitality, a leading provider of personalized parking and hospitality services, including valet, concierge, bell services, parking management, and advanced technology integration, has been acquired by Propark Mobility. - learn more
                                • Vebu Labs, located in El Segundo and specializing in custom automation solutions for the food industryβ€”including the innovative 'Autocado' system that automates the peeling, coring, and scooping of avocados to enhance operational efficiencyβ€”will be acquired by Serve Robotics. - learn more

                                      Download the dot.LA App

                                      RELATEDEDITOR'S PICKS
                                      LA TECH JOBS
                                      interchangeLA
                                      Trending