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Equity

Hardware's brutal week: iRobot, Luminar, and Rad Power go bankrupt

Equity

TechCrunch

Founders, Silicon Valley, Finance, Ipo, Vc, Technology, Business News, Startups, Business, Venture Capital, News, Stock Market, Entrepreneurship, Techcrunch

4.2365 Ratings

🗓️ 19 December 2025

⏱️ 33 minutes

🧾️ Download transcript

Summary

The hardware world had a brutal week, with iRobot, Luminar, and Rad Power Bikes all filing for bankruptcy.  Each company faces its own mix of tariff pressures, supply chain issues, and shifting markets, but together they tell a larger story about the challenges of building physical products in an era of global trade tensions and cheap overseas competition. From the Roomba maker that almost got acquired by Amazon to the e-bike company that couldn't escape its Chinese supply chain, this week's bankruptcies are a warning sign for hardware startups everywhere.  Today on TechCrunch's Equity podcast, hosts Anthony Ha, Rebecca Bellan, and Sean O'Kane discuss what went wrong for three once-promising hardware companies, plus Amazon's massive OpenAI bet and Trump's new approach to AI regulation.  Listen to the full episode to hear more news from the week, including:  How "slop" became Merriam-Webster's word of the year — and why it's become bigger than just AI-generated content  Why Databricks raised $10 billion at a $134 billion valuation (in a Series L!) instead of just going public already  The Coursera-Udemy merger and whether online course platforms can survive the AI era  Chapters:  00:00 - Introduction  00:24 - AI slop is Merriam-Webster's word of the year  06:07 - Amazon's $10 billion OpenAI investment  10:43 - Databricks raises $10 billion in a Series L  14:14 - Coursera acquires Udemy  19:17 - Hardware bankruptcies: iRobot, Luminar, and Rad Power Bikes  26:21 - Trump's AI executive order targets state regulation  Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

J.P. Morgan has teams to support you at every stage of your growth. As former founders who have worked in local markets themselves, the bankers of J.P. Morgan bring deep sector knowledge and lived experience to their clients. JPMorgan can help you navigate complexity with confidence, backed by real world insights in an entrepreneurial perspective.

0:18.8

Get what your startup needs now at JPMorgan.com

0:22.7

slash grow without limits. JPMorgan is the Bank of the Innovation Economy. Hello and welcome to

0:28.9

Equity Techhunch's podcast on the business of startups. Today is Friday, December 19th, and I am

0:35.7

weekend editor Anthony Ha. I'm here with senior writers, Rebecca Boulon and Sean O'Kane.

0:40.6

Kirsten is not here this week, but she will be back next week.

0:44.9

In the meantime, I did want to talk about the word of the year, at least according to

0:51.0

Merriam-Webster.

0:51.9

Rebecca, what is the word of the year?

0:53.6

Slop.

0:56.0

We're sloppy. AI slop. And how did you feel about it?

0:58.0

Yeah, no, I think it makes sense.

1:00.0

AI slop has seeped into everything.

1:02.0

I mean, as we were just discussing before we got on the call, I was talking about how obsessed I am with videos of dogs saving babies.

1:10.0

And Sean was like, oh, there's, there's like a scandal happening. A lot of these videos are actually just AI slop and just made up. Is this true, Sean? To be fair, I hope it's, you know, they're actually out there saving babies, but I know it's a thing that has taken some people recently. So I hope that, I hope that you were watching some of the real ones. I really hope I was too. We really need a way. Surely there's a way for us to know when we're watching something that's AI generated. But I guess that would take away the. Oh, there are ways. There are ways to know. They just act against the interests of the companies that's putting it out there. Exactly. Well, there's ways to know, but not necessarily to be

1:44.5

certain, right? There's usually tells, but also we start to get paranoid. I mean, we were talking a few weeks ago about the whole M-Dash thing of, you know, I use a lot of M-dashes. It doesn't mean my writing's AI generated. I love M-dashes. I'm trying, I'm actively trying not to use M-dashes now. I'm like, what do I use instead? I guess like shorter sentences,

2:05.3

semicolons. I brought back the semicolon. I don't know. But anyway, Slop is the word of the year.

2:12.4

It's defined as low-quality digital content produced at scale by AI. And there were some other winners of the year in terms of word choices, like Rage Bay and vibe coding. But the thing that I think is

2:19.5

interesting about Slop is since this has been, since that got announced, I don't know if you guys

2:23.9

have noticed on Twitter that a lot of people are talking about how, oh yeah, sure, this isn't Slop.

2:29.3

Like, you know, the only boomers call it Slop. Look how amazing this content is. And to me, it's not just about like, okay, yeah, sure, you can get nanobanana to make some cool looking images and that's really great. A runway makes amazing videos and that's really cool. But it's, it's just the slot portion comes from, I don't know, is it real? Is it not real? But there's so much of it. And all I do is, nom, nom, nom, numb, numb, like just consume, consume. And what happens to the internet if all you do is consume stuff, you don't know if it's real and you're just constantly entertained. If this is going to be a word that sticks around for a while, and I assume it is, especially

3:08.7

now that it's chosen as a word of the year, I also, I think it's important to keep in mind that,

...

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