23andMe bought for $256M

Plus: OpenAI's hardware play; Waymo hits 10M rides

Author

Joey Padgett
May 22, 2025

Welcome back to Forests Over Trees, your tech strategy newsletter. It’s time to zoom-out, connect dots, and (try to) predict the future.

A quick thank you to this week’s partners:

  • Reclaimai — an AI calendar that protects your time

  • Softr — create no-code apps on top of your data

  • Flippa — the easiest way to buy or sell an online business

23andMe bought for $256M

Plus: OpenAI's hardware play; Waymo hits 10M rides

⚡ Tech News Takes ⚡

  • What’s up: OpenAI is acquiring io, a hardware startup founded by former Apple design chief Jony Ive, for $6.5B. Ive himself will not join but his design firm, LoveFrom, will now lead all product design for OpenAI, including software. The team’s first AI hardware device is slated to launch in 2026, with CEO Sam Altman calling it “the coolest piece of technology the world will have ever seen.”

  • So what: These guys are incredibly skilled at design, AI, scaling startups, etc…. but forget about that — this is a masterclass in marketing. For now, the hardware is “vaporware”, and all this YouTube video does is tease the crap out of whatever it is they have planned. But nicely done. I’m officially curious.

  • What’s up: Biotech firm Regeneron is acquiring 23andMe out of bankruptcy for $256M, down from its $6B peak valuation in 2021. They’ll get control of 15 million DNA samples and will continue to offer DNA testing. As a kicker, they’ll use all DNA data for drug discovery, but safeguard the privacy of individual samples.

  • So what: It’s a great idea for Regeneron and other bio/pharma companies to grab DNA data like this, so I’m not surprised about that. But I found the “safeguarding of privacy” commitment absolutely ridiculous… how, Sway!? As a reminder, part of 23andMe’s downfall was that they got hacked and millions of customers’ genetic data was compromised. You can’t put that genie back in the bottle, and the idea that any company is hack-proof is laughable.

  • What’s up: Smartphone imports from China to the U.S. — including iPhones — fell by 72% ($1.8B) in April. It’s the lowest level since 2011, and comes amid a 20% tariff on Chinese smartphones imposed by the Trump administration in March. Apple is responding by shifting more iPhone production to India, sending 4x more parts there for assembly over the past year.

  • So what: That’s a serious decrease. No wonder Apple moved so swiftly to make backup plans for production in India. Plus, with all the ongoing regulatory pressure on their App Store fees/exclusivity, Apple’s moats continue to be under attack (which we’ve covered before).

  • What’s up: Waymo hit 10 million total paid robotaxi rides, doubling in 5 months. The Alphabet-owned company now delivers 1M+ trips per month across Austin, LA, SF, and Phoenix. Waymo isn’t yet profitable, but says it’s proving there’s a “path to profitability.”

  • So what: It’s still a drop in the bucket for global rideshare (which is in the tens of billions of rides per year), but Waymo’s growth is impressive. As for profitability, the economies of scale from doubling in 5 months helps! As do the other initiatives we’ve heard about recently (partnering with Toyota on cheaper cars, partnering/outsourcing the app to Uber, etc.).

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🌲 F/T Shoutouts 🌲

  • The under-appreciated Netflix co-founder — I just finished listening to Marc Randolph’s book. He narrates the audiobook himself (baller move), and it’s striking how low ego he is… he talks openly about getting demoted by Reed Hastings, having “enough”, and being comfortable walking away.