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14 ‘Second Wave’ Startups Powering the Next Evolution of the Industry

14 ‘Second Wave’ Startups Powering the Next Evolution of the Industry

Kylan Gibbs is betting that AI’s next chapter won’t be about trimming budgets — it’ll be about building entirely new kinds of products.

Gibbs, a former product manager at DeepMind, now runs Inworld, an AI startup that has raised more than $100 million from backers including Microsoft, Intel, and Founders Fund. In January, he launched what he calls the “Second Wave” AI accelerator, a program designed to support up to 30 startups building fresh consumer experiences — not just layering chatbots onto existing workflows.

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The initiative has drawn support from venture firms such as Khosla Ventures and Lightspeed Venture Partners, along with leaders from OpenAI, Google, and Stripe. A demo day is slated for early March in San Francisco, where founders will pitch to potential investors.

Here’s a look at some of the startups. Gibbs sees as part of this “Second Wave”:

Luvu

Luvu is building an AI-powered fitness coach that behaves more like a personal trainer than a static app. Using generative AI, computer vision, and reinforcement learning, it analyzes workouts in real time, verifies movements, and sends personalized feedback and motivation. The company has raised early funding through a16z Speedrun and additional seed investors.

Status

Created by WishRoll, Status is a social simulation game where users step into AI-generated worlds — from magical schools to pro sports leagues — and interact with characters powered by large language models. The app generates replies, evolving storylines, and even “aura scores” that rate interactions. WishRoll has secured over $15 million in venture funding.

Particle

Particle is rethinking digital news. Its AI-native platform connects reporting to relevant insights pulled from sources like long-form podcasts, mapping relationships between transcripts and articles. The system surfaces curated clips and adds context automatically. The startup has raised more than $10 million from investors, including Lightspeed and Axel Springer.

Bible Chat

Bible Chat offers a conversational “talk to the Bible” experience, letting users ask faith-based questions, request prayers, or explore scripture. Instead of focusing on efficiency, it positions AI as a personalized spiritual companion. The company raised roughly $14 million from True Ventures and others last year.

Liven

Liven describes itself as a self-discovery companion. The app combines mood tracking, habit tools, bite-sized lessons, and an AI assistant named Livie to help users reflect and build consistency. It recently closed a seed round.

Born

Born is developing social AI companions meant to strengthen real-world friendships. Its flagship app, Friends, lets users co-parent virtual pets, play mini-games, and build routines together. Backed by investors including Tencent and Accel, Born has raised about $25 million.

OtherHalf

OtherHalf delivers anime-inspired 3D AI companions with expressive body language and real-time voice, aiming for deeper emotional engagement than text chat. The startup behind it, Azimov, is supported by a16z Speedrun.

FlowGPT

FlowGPT operates as a consumer marketplace for prompts and AI-driven experiences built around models like ChatGPT. Users share, remix, and discover new ways to interact with generative AI. In 2024, it raised $10 million from Goodwater Capital and DCM Ventures.

Tolan

Tolan is a voice-first AI companion centered on animated alien characters, designed to feel supportive while encouraging healthy tech boundaries. OpenAI has highlighted its emphasis on low-latency voice and memory-driven personalities. The startup behind it, Portola, raised $20 million in a Series A led by Khosla Ventures.

Little Umbrella

Little Umbrella is blending generative AI with social party games tailored for online communities like Discord. The studio raised $2 million in early 2025 from investors, including Zynga founder Mark Pincus.

Speak

Speak focuses on spoken fluency rather than gamified exercises. The AI tutor encourages learners to practice conversations out loud, simulating real dialogue. In late 2024, Speakeasy Labs, the company behind Speak, secured $78 million from investors including OpenAI, Accel, Khosla Ventures, and Y Combinator.

Higgsfield

Founded by Snap’s former head of generative AI, Higgsfield provides AI tools for creating cinematic video content from simple ideas. The platform targets creators and marketers who want high-end production without traditional resources. The company has raised $130 million and is valued at over $1 billion.

TalkPal

TalkPal offers a digital language teacher that simulates real-life speaking scenarios across dozens of languages, delivering instant feedback and on-demand practice.

Promova

Promova is a large-scale language-learning platform that blends short lessons with AI-powered personalization, promising a more adaptive alternative to rigid curricula.

Together, these startups reflect a shift in mindset. Instead of using AI mainly to automate back-office tasks or reduce labor costs, they’re exploring how it can create new forms of interaction, entertainment, learning, and connection — and, in the process, unlock entirely new revenue streams.

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Written by Hajra Naz

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