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XMother Blames TikTok For Daughter’s Death in ‘Blackout Challenge’ Suit
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
The mother of a 10-year-old girl who died after allegedly trying a dangerous online “challenge” has sued Culver City-based TikTok and its Chinese parent company ByteDance, claiming the social media app’s algorithm showed her videos of people choking themselves until they pass out.
Nylah Anderson, an intelligent child who already spoke three languages, was “excruciatingly asphyxiated” and found unconscious in her bedroom on Dec. 7, according to a complaint filed Thursday in federal court in Pennsylvania. She spent five days in pediatric intensive care until succumbing to her injuries.
The lawsuit, filed by her mother Tawainna Anderson, claims TikTok’s algorithm had previously shown Nylah videos depicting the “Blackout Challenge,” in which people hold their breath or choke themselves with household items to achieve a euphoric feeling. That encouraged her to try it herself, the lawsuit alleged.
“The TikTok Defendants’ algorithm determined that the deadly Blackout Challenge was well-tailored and likely to be of interest to 10-year-old Nylah Anderson, and she died as a result,” the suit said.
In a previous statement about Nylah’s death, a TikTok spokesperson noted the “disturbing” challenge predates TikTok, pointing to a 2008 warning from the Centers for Disease Control and Prevention about deadly choking games. The spokesperson claimed the challenge “has never been a TikTok trend.” The app currently doesn’t produce any search results for “Blackout Challenge” or a related hashtag.
“We remain vigilant in our commitment to user safety and would immediately remove related content if found,” the TikTok statement said. “Our deepest sympathies go out to the family for their tragic loss.”
At least four other children or teens have died after allegedly attempting the Blackout Challenge, according to the Anderson lawsuit. TikTok has grappled with dangerous challenges on its platform before, including one in which people tried to climb a stack of milk crates. That was considered so dangerous that TikTok banned the hashtag associated with it last year. In February, TikTok updated its content rules to combat the dangerous acts and other harmful content.
The Anderson lawsuit comes as lawmakers and state attorneys general scrutinize how TikTok and other social media can be bad for teens and younger users, including by damaging their mental health, causing negative feelings about their body image and making them addicted to the apps.
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Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Two LA Startups Raised $2.37B to Build What AI Needs
🔦 Spotlight
Happy Friday, LA.
The largest checks in tech are increasingly going toward companies trying to build their way out of America’s biggest physical constraints.
This week, two Los Angeles startups raised a combined $2.37 billion in equity to tackle two particularly urgent ones: how the country manufactures critical hardware and where it will find enough electricity to power the AI era.
Torrance-based Hadrian is building highly automated factories for defense and aerospace. El Segundo’s Valar Atomics wants to manufacture nuclear reactors at scale. Different industries, same underlying bet: the next generation of technology will depend on our ability to produce physical infrastructure much faster than we do today.
Hadrian raised $1.37 billion in Series D funding, bringing its valuation to $7.87 billion. The company plans to use the capital to open new factories, expand research and development, and increase its capacity to produce critical defense, aerospace and industrial systems.
Hadrian’s pitch is straightforward, if wildly ambitious: America needs to relearn how to build things and build them quickly.
Its factories combine skilled workers with AI, robotics and proprietary software to manufacture precision components and, increasingly, complete mission-critical systems. Its customers include defense giants such as Lockheed Martin and RTX, along with newer players like Anduril.
The company has come a long way from simply making aerospace parts. Hadrian is positioning itself as a piece of America’s industrial infrastructure, offering manufacturers a way to rapidly scale domestic production at a time when wars abroad, strained supply chains and growing defense demands have made the country’s manufacturing gaps increasingly difficult to ignore.
Investors are clearly buying the argument. The new round comes just over a year after Hadrian raised $260 million, suggesting that “reindustrialization” has officially graduated from venture capital buzzword to billion-dollar investment thesis.
Meanwhile, roughly 15 miles away in El Segundo, Valar Atomics is moving even faster than its enormous ambitions suggested.
When we last wrote about Valar, the company was reportedly raising $450 million at a $2 billion valuation and racing to prove that nuclear energy could move on AI’s timetable. Now, it has closed a $1 billion Series B led by Sequoia Capital, secured an additional $200 million credit facility and reportedly reached a $6 billion valuation.
Valar is developing standardized, factory-built nuclear power plants designed to avoid the enormous costs and decades-long construction timelines associated with traditional nuclear projects. Its goal is not merely to build a working reactor, but to eventually manufacture fleets of them.
That ambition also sounds considerably less theoretical than it did when we first covered the company. In June, Valar’s Ward 250 reactor achieved a self-sustaining nuclear reaction. Just one week later, the company demonstrated the reactor generating electricity to power an Nvidia Blackwell system. Valar now says the new funding will help it move from proving its technology works to producing reactors at scale.
The timing is no coincidence. AI’s enormous appetite for electricity is forcing the tech industry to confront a basic reality: the cloud still has to plug into something. Training models and operating massive data centers will require far more reliable power, and nuclear energy is rapidly becoming one of Silicon Valley’s favorite answers.
Hadrian and Valar may be solving different problems, but their unusually large rounds point to the same shift. AI can design, predict and automate, but it cannot manufacture a missile component or generate a megawatt of electricity on its own. That requires factories, energy systems, supply chains and a great deal of capital.
For years, venture-backed companies competed to build the software layer. Now, some of the biggest bets are being placed on the infrastructure underneath it.
The future may run on AI. But first, someone has to build what keeps it running.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Endeavor Optical Networks emerged from stealth with $10.75M in seed funding from General Catalyst and Andreessen Horowitz to develop a satellite network that uses lasers to move data between continents. The startup plans to use the capital to build an optics lab, hire engineers and conduct ground testing ahead of a demonstration satellite launch targeted for late 2027. - learn more
- Actualyze AI emerged from stealth with a $7M seed round backed by Storm Ventures, Canaan Partners, Morado Ventures and AME Cloud Ventures. Its platform gives enterprises a central control layer for managing AI usage across teams and applications, helping them enforce security policies, track spending, route requests between models and maintain audit trails. - learn more
- Blaze.tech raised $8.5M in pre-seed funding led by Friale, a healthcare-focused venture firm founded by the family behind HCA Healthcare. The company helps digital health startups, providers and payers turn AI-generated prototypes into HIPAA-compliant software for uses including e-prescribing, EHR integrations, telehealth and auditing. - learn more
- Canon Capital participated in Oligo Security’s $60M funding round alongside Ballistic Ventures, Greenfield Partners, Lightspeed Venture Partners, Red Dot Capital Partners, TLV Partners and other investors, bringing the cybersecurity company’s total funding to $140M. Oligo will use the capital to accelerate product development and expand its global go-to-market operations as it helps organizations detect and block software exploits in real time. - learn more
- Matter Venture Partners participated in Volta’s seed and Series A financing alongside Azora, Andreessen Horowitz, Altimeter, NVIDIA and Michael Dell’s family office, valuing the AI infrastructure startup at $2.4B. Emerging from stealth, Volta plans to use the backing to develop and operate large-scale AI data centers, supported by a $5B infrastructure financing program with Azora and a $10B European compute partnership. - learn more
- Cedars-Sinai participated in Cirrus Therapeutics’ expanded seed financing through its Intellectual Property Company, bringing the ocular immunology biotech’s total funding to $14.7M. Cirrus will use the backing to advance its gene and cell therapy pipeline, including a lead treatment for geographic atrophy, while a new collaboration with Singapore Eye Research Institute and Duke-NUS will support research, clinical development and expansion across Asia-Pacific. - learn more
- Strong Ventures made a follow-on investment in Ready Robust Machine’s ₩13.4B Series B, which was led by Quantum Ventures Korea and brought the heavy-equipment technology company’s total funding to ₩22.9B. The company develops energy-recovery systems for hydraulic machinery and will use the capital to build out mass production, expand its data services and enter the Japanese market. - learn more
LA Exits
- Artium has been acquired by global consulting firm AlixPartners, bringing its expertise in building enterprise-grade AI agents for clients including BNY Mellon, Mayo Clinic and eBay to a broader global platform. The company will continue operating as a distinct team under the name Artium by AlixPartners, retaining its founders, employees, methodology and research relationships. - learn more
From Uber to Atoms: Travis Kalanick’s $1.7 Billion Return
🔦 Spotlight
Hello LA,
Nine years after his turbulent exit from Uber, Travis Kalanick is back with a new company, an enormous war chest and, apparently, some unfinished business.
Los Angeles-based Atoms announced this week that it has secured a $1.7 billion equity investment led by Andreessen Horowitz, with a16z cofounder Ben Horowitz joining its board. Bain Capital, Fifth Wall, Uber and several other investors participated, while a roster of major banks, including Goldman Sachs, JPMorgan and Bank of America, are listed as debt partners.
Yes, Uber itself is now backing the comeback of its famously ousted cofounder. Silicon Valley may preach disruption, but it has always appreciated a good redemption arc.
Atoms is the culmination of the company Kalanick has spent the past eight years building largely out of public view. Formerly known as City Storage Systems, the parent company behind CloudKitchens, it is now bringing its businesses together under one ambitious umbrella: Atoms Food, Atoms Mining and Atoms Transport.
The premise is that AI’s next major frontier will not be confined to screens, chatbots or software. Atoms wants to build what Kalanick calls a “computer for the physical world,” using software, sensors, robotics and AI to automate how physical goods are produced, stored and moved.
That means tackling decidedly unglamorous but enormous industries such as mining, construction, food production and heavy transportation. Rather than betting on humanoid robots that can theoretically do everything, Atoms is focused on specialized machines designed to perform specific, economically useful jobs.
In other words, the robot does not need a face. It needs a business model.
For a16z, the investment is as much a bet on Kalanick as it is on industrial AI. In an essay bluntly titled “Travis Is Back,” Horowitz argues that Kalanick possesses the rare mix of technical range, endurance and sheer force of will required to drag old-line industries into a new technological era. The firm’s broader thesis is that robotics will eventually handle much of the repetitive work involved in making, moving and storing physical goods, creating a market potentially as consequential as computing itself.
There is also some history being settled. Kalanick, Horowitz and Marc Andreessen nearly partnered during Uber’s early days but never completed the deal. In a new conversation about Atoms, Kalanick and Horowitz revisit that missed opportunity and the long road that brought them back together. Sixteen years later, the check is considerably larger.
The scale of the investment is remarkable, but so is its location. Atoms is headquartered in Los Angeles, giving the city a front-row seat to one of tech’s boldest industrial AI bets. It also reinforces something increasingly evident across LA’s startup ecosystem: the next era of AI will not only be written in code. It will be built in kitchens, warehouses, mines, vehicles and factories.
Whether Atoms becomes the operating system for the physical world or simply proves that even $1.7 billion cannot make atoms behave like bits remains to be seen. But Kalanick is taking another enormous swing, and this time, Los Angeles is where the comeback story begins.
More from this week’s LA startup and venture scene below.
🤝 Venture Deals
LA Companies
- Hawthorne-based Andrenam raised an $18M Series A led by Upfront Ventures, with participation from Valor Equity Partners, Also Capital, First Round Capital and Long Journey Ventures, bringing its total funding to $30M. The maritime defense startup will use the capital to scale production of its sonar-equipped buoys and expand its AI-powered platform for detecting and tracking underwater activity. - learn more
- Long Beach-based Bluecore Energy emerged from stealth with approximately $10M in oversubscribed financing led by Slauson & Co., with participation from Harlem Capital, Precursor Ventures, Hartbeat Ventures and others. The company is developing small modular nuclear reactors that can operate aboard floating barges and deliver zero-emission power to ports, data centers and other critical infrastructure. - learn more
- Vikk AI raised $4.2M across a $700K pre-seed and $3.5M seed round, with backing from MagnaSci Ventures and several angel investors. The legal AI startup will use the funding to expand its consumer assistant, document tools and advertising platform that connects users with lawyers based on their needs and location. - learn more
- Final Boss Sour raised $4M in strategic funding from Evolution VC Partners, The Angel Group, Mondelēz International’s SnackFutures Ventures and others, bringing its total funding to $12M. The gaming-inspired real-fruit snack brand will use the capital to expand into major retailers, including Walmart, Kroger, Target and 7-Eleven, while developing new products and collaborations. - learn more
- Overture Ventures participated in Fluxco’s $26M seed round, led by 8VC and Congruent Ventures, alongside Trust Ventures, Koch Disruptive Technologies and others. The Austin startup uses AI to help companies source electrical transformers from more than 150 manufacturers, reducing a procurement process that can take months to just days. - learn more
- Alexandria Venture Investments and Wedbush Healthcare Partners participated as returning investors in Crystalys Therapeutics’ oversubscribed $130M Series B, which was led by Frazier Life Sciences. The San Diego biotech will use the funding to advance Phase 3 trials and commercialization preparations for dotinurad, its once-daily oral treatment for gout. - learn more
- Rebel Fund participated in Klaimee’s $5.5M seed round, led by FundersClub’s Alexander Mittal and backed by ex/ante, Pioneer Fund, Y Combinator and others. The San Francisco insurtech startup certifies and insures autonomous AI agents, helping businesses manage financial and liability risks that traditional cyber and technology policies may not cover. - learn more
- M13 participated in Skyfall AI’s undisclosed funding round alongside Fidelity, Inovia Capital, Touring Capital, NextView Ventures and Garage Capital. Founded by former Microsoft researchers, the San Francisco startup is developing AI systems capable of making long-term decisions across finance, operations, marketing and other business functions, with the goal of building an autonomous enterprise. - learn more
- Interlagos Capital led Beyond Reach Labs’ $10M seed round, with participation from TerraForge Capital, Off-Piste Capital, Y Combinator and Augur VC. The startup will use the funding to scale production of its deployable solar-array hardware for satellites at a new 16,000-square-foot facility in Brooklyn, with plans to achieve flight qualification by the end of 2026. - learn more


