Inworld AI and the Rise of Second-Wave AI Startups

The artificial intelligence landscape is shifting. While initial AI applications largely focused on boosting productivity and streamlining existing workflows, a new wave of startups is emerging, leveraging AI to create entirely new consumer experiences and unlock novel revenue streams. Leading this charge is Inworld AI, a company founded by former Google DeepMind product manager Kylan Gibbs, and its recent initiative to accelerate the growth of these “Second Wave” AI ventures.

The Second Wave: Beyond Automation

Unlike the first generation of AI tools designed to automate tasks, Second Wave AI startups are focused on building engaging, interactive experiences. These companies are exploring applications in areas like personalized fitness, social gaming, language learning, and creative content generation. This shift represents a move towards AI as a source of entertainment, connection, and personal growth, rather than simply a tool for efficiency.

Inworld AI’s Accelerator Program

In January 2026, Kylan Gibbs launched an accelerator program designed to support up to 30 Second Wave AI startups. Backed by venture capital firms including Khosla Ventures and Lightspeed Venture Partners, as well as leaders from OpenAI, Google, and Stripe, the program offers participants introductions to potential investors and culminates in a demo day in early March in San Francisco. Inworld AI itself has secured over $120 million in venture capital funding from investors including Microsoft, Intel, and Founders Fund.

Spotlight on Second Wave Startups

Several startups exemplify the potential of this new wave of AI innovation:

Luvu

Luvu is an AI-powered fitness app that provides highly personalized training experiences. Utilizing generative AI, Luvu delivers tailored motivational messages and real-time workout feedback, adapting to user behavior through computer vision and reinforcement learning. The company has raised pre-seed funding from a16z speedrun and a seed round with Insiders Ventures.

Status

Status is an AI-powered social simulation game that allows users to role-play in dynamic, AI-generated social media worlds. Powered by large language models, the app creates evolving storylines and assesses interactions with “aura scores,” offering an immersive and ever-changing gameplay experience. WishRoll, the company behind Status, has raised over $15 million in VC funding.

Particle

Particle is an AI-native news platform that uses AI embeddings and generative tools to connect reporting with relevant insights from sources like podcasts. By mapping relationships between transcripts and stories, Particle curates clips and provides summaries, delivering contextualized information to readers. Particle has raised over $10 million from investors including Lightspeed and Axel Springer.

Bible Chat

Bible Chat is a consumer-facing app that allows users to engage with the Bible in a conversational manner, asking questions, requesting prayers, and exploring scripture through an AI-powered interface. The startup raised approximately $14 million in funding from True Ventures and others.

Liven

Liven is a “self-discovery companion” that combines mood tracking, habit-building tools, and an AI personal assistant named “Livie” to help users reflect, reframe, and maintain consistency. Liven has secured a seed round of funding.

Born

Born is focused on building social AI companions designed to foster real-world connections. Its flagship product, Friends, allows users to co-parent virtual pets and engage in shared activities, offering an alternative to isolating chatbot interactions. Born has raised around $25 million from investors including Tencent and Accel.

OtherHalf

OtherHalf offers immersive companion experiences featuring anime-inspired 3D characters with expressive body language and real-time voice interactions, aiming for emotional resonance beyond simple text-based chat. Azimov, the startup behind OtherHalf, is backed by a16z speedrun.

FlowGPT

FlowGPT serves as a marketplace and community hub for sharing, discovering, and remixing prompts and agent-like experiences for models like ChatGPT. The platform raised $10 million from Goodwater Capital and DCM in 2024.

Tolan

Tolan is a voice-first AI companion app centered around animated alien “best friends” designed to provide emotional support and encourage healthy boundaries. OpenAI has highlighted Tolan’s focus on low-latency, voice-first interaction and “memory-driven personalities.” Portola, the startup behind Tolan, raised $20 million in a Series A round led by Khosla Ventures.

Little Umbrella

Little Umbrella is an AI-powered social games studio blending party-game dynamics with generative AI, creating titles for online communities like Discord. The startup raised $2 million in early 2025 from investors including Zynga founder Mark Pincus.

Speak

Speak is an AI tutor app focused on developing spoken fluency through conversational practice, offering a more interactive approach than traditional language learning methods. Speakeasy Labs, the startup behind Speak, raised $78 million from investors including OpenAI, Accel, Khosla Ventures, and Y Combinator.

Higgsfield

Higgsfield is an AI video platform aimed at creators and marketers, providing tools for generating videos and effects from ideas, democratizing cinematic content creation. Founded by the former head of generative AI at Snap, Higgsfield has raised $130 million at a valuation exceeding $1 billion.

TalkPal

TalkPal markets a digital language teacher supporting dozens of languages and emphasizing conversation practice, using AI to simulate speaking scenarios and provide feedback.

Promova

Promova is a large consumer language-learning platform that blends bite-sized lessons with AI tools and personalized plans, offering an adaptive learning journey.

The Future of AI-Powered Experiences

As AI technology continues to advance, the Second Wave of AI startups is poised to reshape how we interact with technology and experience the world around us. With the backing of prominent investors and the leadership of innovators like Kylan Gibbs, these companies are paving the way for a future where AI is not just a tool, but a companion, a source of entertainment, and a catalyst for personal growth.