Good day. Venture investors are bullish on the idea that artificial intelligence could reshape how consumers engage with entertainment content. No startup idea is too ambitious, it seems.

A recent example is AI media startup Rumi Labs. Last month, the San Francisco-based company raised a $4.7 million pre-seed funding round co-led by Andreessen Horowitz’s crypto accelerator and venture firm Escape Velocity Crypto.

Rumi is developing AI and decentralized tech that can allow viewers to engage with media content in real time. For instance, users could have mock chats with characters or professional sports athletes about what they are doing on the screen. Rumi could help identify actors and clothing outfits on screen, or receive real-time fact checks during political debates.

The Wall Street Journal spoke with Rumi Labs co-founders Niko Cunningham and Mateusz Poreda about the recent round and potential challenges ahead. The interview has been edited for length and clarity.

Read the interview here.

And now on to the news...

Israeli startups under missile fire. Iran has been hitting Israel with missile barrages for the past several days in response to Israel’s attacks on Iran’s nuclear and other facilities. Tel Aviv, one of the top global startup hubs, has been a regular target, WSJ Pro’s Yuliya Chernova reports.

• On Friday, Ron Reiter’s apartment building in Tel Aviv suffered a direct hit by an Iranian ballistic missile.
   
• The high-rise was just a five-minute walk from the new office of Sentra, a data-security startup where Reiter is a co-founder and chief technology officer. He was excited about that proximity last week during the office move-in. Reiter, who wasn’t home at the time of the blast, is now looking for another place to live.
   
• “Missiles are landing in the heart of Israeli high tech,” said Shalev Hulio, chief executive and co-founder of cybersecurity company Dream.

Tensions between OpenAI and Microsoft over the future of their famed AI partnership are flaring up, The Wall Street Journal reports. OpenAI wants to loosen Microsoft’s grip on its AI products and computing resources, and secure the tech giant’s blessing for its conversion into a for-profit company. Microsoft’s approval of the conversion is key to OpenAI’s ability to raise more money and go public. But the negotiations have been so difficult that in recent weeks, OpenAI’s executives have discussed what they view as a nuclear option: accusing Microsoft of anticompetitive behavior during their partnership, people familiar with the matter said. That effort could involve seeking federal regulatory review of the terms of the contract for potential violations of antitrust law, as well as a public campaign, the people said.

A handful of Middle Eastern countries have emerged as some of the world’s biggest spenders on artificial intelligence. The companies benefiting from the windfall should be wary—as should their investors, WSJ reports. Gulf countries including Saudi Arabia, the United Arab Emirates and Qatar are in splash-out mode, spending billions of dollars on data-center projects with Microsoft and OpenAI, as well as chip purchases from Nvidia  Advanced Micro Devices and others to fuel their AI ambitions. Their aim is to seed domestic AI industries rather than ceding the technology entirely to foreign tech companies. Many see it as a point of national pride to develop Arabic-language AI models locally. AI investments also fit into longstanding economic diversification efforts.  

People

Antler is launching a San Francisco office and hired Bob Rosin as a partner. He joins the firm from Defy.vc.

Data analytics software developer Ocient appointed John Morris as chief executive officer.

Juniper Square, a San Francisco-based provider of connected fund software and services for private markets, closed a $130 million Series D round led by Ribbit Capital at a $1.1 billion valuation.

Slide, a Norwalk, Conn.-based business continuity and disaster recovery platform for managed service providers, raised $25 million in Series A funding led by Base10 Partners.

WorkWhile, a San Francisco-based startup matching businesses with hourly workers, collected $23 million in Series B funding led by Rethink Impact. The company also appointed Simon Khalaf as chief operating officer.

Onebrief, a Honolulu-based developer of software for military staff collaboration and operational planning, scored a $20 million Series C extension round led by Battery Ventures, giving the company a $1.1 billion valuation.

Sedai, a San Francisco-based autonomous cloud optimization platform, landed $20 million in Series B funding led by AVP.

Extend, a New York-based document processing startup, secured $17 million in combined seed and Series A funding led by Innovation Endeavors.

Alta, a New York-based startup providing a personalized styling companion, grabbed $11 million in seed financing. Menlo Ventures led the investment, with Partner Amy Wu joining the company’s board.

Lumion, a Salt Lake City-headquartered startup building an operating system for career and trade schools, was seeded with $10.7 million in funding. TTV Capital led the round, which included participation from Tusk Venture Partners and others.

Diskover, a Reno, Nevada-based startup helping enterprises structure their unstructured data, closed a $7.5 million seed round from The Hive, Snowflake Ventures and others.

ZOOT, a New York-based sweepstakes gaming platform powered by stablecoin technology, was seeded with a $6 million investment led by CoinFund.

• Trump’s smartphone can’t be made in America for $499 by August 
   
• Why superintelligent AI isn’t taking over anytime soon
   
• The friendly caller who’s helping seniors feel less lonely
   
•  Vista scoops up Amtech Software from Peak Rock

• How AI can make cities work better for residents (MIT Technology Review)
   
• The definitive story of Tesla Takedown (Wired)
   
• AI is poised to rewrite history. Literally. (New York Times)

This newsletter was compiled by Marc Vartabedian, Yuliya Chernova, Zachary Cole and Brian Gormley. 

WSJ Pro Venture Capital is a premium service of The Wall Street Journal. We cover venture capital and the global startup ecosystem. Share your tips, comments and questions: vcnews@wsj.com

The Team: Matthew Strozier, Yuliya Chernova, Brian Gormley, Angus Loten and Marc Vartabedian.

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