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

A tumultuous week has rocked the hardware sector, with significant announcements from iRobot, Luminar, and Rad Power Bikes, all of which have filed for bankruptcy. Each of these companies has encountered a unique set of challenges, including tariff pressures, supply chain disruptions, and evolving market dynamics. The situation reflects broader difficulties faced by manufacturers of physical products amidst ongoing global trade tensions and the competition posed by lower-cost imports. iRobot, known for its popular Roomba vacuum, nearly became part of Amazon, while Rad Power Bikes struggled to navigate the complexities of its supply chain in China. This week’s developments serve as a stark reminder of the precarious nature of hardware startups today. On the latest episode of TechCrunch’s Equity podcast, hosts Anthony Ha, Rebecca Bellan, and Sean O’Kane delve into the circumstances leading to the downfall of these once-promising companies. Additionally, they discuss Amazon's substantial investment in OpenAI and former President Trump’s new stance on AI regulation. Tune in to catch up on all the week’s highlights, and don’t forget to subscribe to Equity on platforms like YouTube, Apple Podcasts, Overcast, and Spotify. Follow Equity on X and Threads at @EquityPod for more updates.