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Gusto hits $1B revenue, a figure that brings it closer to public markets

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While AI disruption looms over many legacy SaaS companies, several HR tech startups seem to be thriving.

One of these companies is small-business payroll provider Gusto. The 14-year-old company, last valued at over $9 billion, just announced that it surpassed $1 billion in revenue earlier this year. Unlike many startups that report annualized recurring revenue (ARR) — an estimate of the value of their contracts in the upcoming 12 months — Gusto’s figure represents actual revenue earned over the previous 12 months.

Gusto was last valued at at $9.3 billion, Fortune reported, when it launched a $200 million tender offer for its employees in June, 2025. The deal valued the company about where it was valued in early 2022.

That’s a bargain for Gusto investors compared to its decacorn competitors. For instance, Deel, which serves large international businesses, crossed $1 billion in ARR last year. The company was last valued at $17.3 billion when it raised a $300 million round co-led by Ribbit Capital and Andreessen Horowitz in October.

Meanwhile, Deel’s primary rival, Rippling, which last month announced that it also hit $1 billion in ARR, was last valued at $16.8 billion after raising $450 million in May 2025.

By crossing the $1 billion revenue threshold, Gusto is clearly showing its financial might against its peers.

The company has been making other big moves, too. Last year, it completed the acquisition of Guideline, a startup offering retirement plans to small and medium businesses, for about $600 million, as we reported.

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Following the December board appointment of Anthropic CTO Rahul Patil, Gusto is already reporting massive efficiency gains. According to the company, AI now accounts for 50% of all new code generation and handles an equal share of customer support cases.

Given its relatively modest valuation compared to its revenue, Gusto is well-positioned for another fundraise, or even an IPO, at a higher valuation. The company has another key factor in its favor. While rivals Deel and Rippling remain embroiled in a high-profile corporate espionage lawsuit, Gusto has stayed out of those kinds of headlines and focused on its business.

Gusto has long been considered an IPO candidate. Even so, a public debut appears iffy in 2026 while the IPO market still remains so frosty.

When TechCrunch interviewed Gusto CEO and co-founder Josh Reeves in December, he insisted he doesn’t spend much time thinking about an IPO, preferring instead to focus on serving customers and scaling the business.

As for if that’s changed given the revenue milestone, the company won’t say. A Gusto spokesperson tells us: “Nothing to share on the IPO timeline front.”   

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Your car and its mobile app are probably handing over all kinds of data to tech companies

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Modern-day vehicles built with connected car technology such as WiFi and GPS collect reams of data about its owners. And that data is not staying private, according to a new study conducted by researchers at Northeastern University.

That conclusion isn’t new — there have been numerous investigations and lawsuits exposing how driving data is collected and shared with third parties, including insurance companies. What the study reveals is just how vast the problem is and how hard it is for consumers to avoid, short of not using the vehicle or its convenient features like remote start and unlock.

Researchers in partnership with Consumer Reports tested 21 late-model vehicles from 17 automakers, including GM brands Cadillac and Chevrolet as well as Ford, Lucid, Rivian, Tesla, Toyota, and more. They also examined 30 companion mobile apps to “understand the privacy implications of the connected vehicle ecosystem.” The peer-reviewed study will be published this week.

The implications aren’t great for consumers, whose data is being shared with tech companies including Adobe, ContentSquare, Google, Microsoft, Meta, Snap, and Yahoo.

Nineteen of the 21 vehicles tested sent traffic to at least one third party and seven of the 30 apps gave sensitive data such as the vehicle identification number (VIN), emails, phone numbers, and precise location to third-party companies associated with tracking and advertising.

This often went a step further with multiple forms of information being sent to the same third party, a scheme that allows advertisers and data brokers to build in-depth profiles of consumers, according to the findings. These profiles can be particularly hard for consumers to shake because they’re sold to a variety of companies including insurers and banks.

When researchers paired the companion app to the vehicle it roughly doubled the exposure to advertising and tracking companies.

The findings were shared with the different manufacturers and all of them, with the exception of Honda, shifted blame elsewhere and often to consumers, the researchers said. (Honda did respond by improving its data collection practices after learning about the findings and ordered its vendor Amplitude to deleta all geolocation data it had received.)

Consumer Reports was told by several automakers that some links in their companion apps opened outside webpages, which might include cookies that collect customer data. Regardless of how this data was collected, drivers weren’t informed.

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The internet is convinced Elon Musk’s xAI trolled OpenAI’s ‘Dots’ launch

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On Tuesday, OpenAI launched a new product called Dots, an always-on AI agent with a bubbly, blobby avatar. While the colorful avatar might evoke a smile, the biggest laugh from the launch is (we imagine) being had by Elon Musk, the former OpenAI founder who left, launched competitor Grok, and unsuccessfully sued.

That’s because the domain “dot.com” belongs to Musk’s xAI, and it currently redirects to the download page for xAI’s Grok chatbot app. According to the Whois domain owner registry, that domain name was just transferred in July.

It is entirely possible that xAI bought the domain for normal domain-buying reasons. “Dot” could be a typo of “bot,” so it nabbed it to grab mistyped searches. We’ve reached out to xAI and asked. But xAI doesn’t own the “bot.com” name, nor does it own other obvious typo domains like “vot.com,” which is listed for sale.

The internet’s theory is far funnier: that Musk (or his team) pulled off a prank, getting wind of OpenAI’s new product and its name and buying the domain name.

In fact, anonymous X user and xAI watcher @birdabo (this person calls themselves “chief shitposting officer @SpaceXAI“) was first to spot the domain name in a now-viral post. Whatever the motivation, the circumstance is funny.

And as for the “dots.com” domain, a more direct fit to the product name, it currently belongs to a long-defunct company. So if a petty revenge prank was really the motivation, grabbing that name, too, would be next level.

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Google Workspace Lets Admins Set Role Expiration Dates

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Google Workspace now lets admins time-limit role assignments for users, security groups, and service accounts. See how expiration works and its key limits.

The post Google Workspace Lets Admins Set Role Expiration Dates appeared first on TechRepublic.

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