Equity Hardware's brutal week: iRobot, Luminar, and Rad Power go bankrupt
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Dec 19, 2025 This week saw a shocking wave of bankruptcies from hardware companies like iRobot, Luminar, and Rad Power Bikes. Each faced unique challenges, including tariff pressures and supply chain struggles, reflecting a broader crisis in the hardware industry. Meanwhile, Amazon is reportedly making a massive $10 billion investment in OpenAI, raising questions about the circular economy of AI. Plus, they discuss a significant merger in the online education space with Coursera's acquisition of Udemy, amid growing concerns about AI's impact on content quality.
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AI's Circular Economy Of Investments
- Large AI deals create a circular economy where firms invest in partners that then buy their products and services.
- This interconnected financing blurs competition and ties infrastructure players closely to model providers.
Why Firms Delay IPOs With Mega Private Rounds
- Databricks' huge late-stage raise shows companies can stay private longer when private capital and secondaries provide liquidity.
- Staying private delays public scrutiny but lets firms fund growth and employee liquidity pre-IPO.
Online Courses Face AI-Driven Consolidation
- Coursera acquiring Udemy signals consolidation as AI threatens traditional online course models.
- Self-directed learners and AI tools may reduce demand for paid course platforms unless they adapt.