Marissa Mayer will close her old AI startup, sell assets to her new AI startup

Marissa Mayer, the former CEO of Yahoo, has announced the closure of her consumer software venture, Sunshine, as she pivots towards her new AI initiative, Dazzle. According to a report from Wired, this decision was communicated via an email to Sunshine’s shareholders. Dazzle aims to develop an AI-powered personal assistant, with sources suggesting that all employees from Sunshine will seamlessly transition to the new company. Most of Sunshine’s investors, including Norwest Venture Partners, Felicis Partners, and SV Angel, have reportedly approved the asset sale, signaling their confidence in Mayer's new direction. Founded in 2018, Sunshine initially introduced a subscription-based app for contact management named “Sunshine Contacts.” Unfortunately, the app struggled to gain traction, primarily due to user concerns around privacy. Despite attempts to revitalize the service with additional features like event management and photo sharing infused with AI elements in 2024, it failed to resonate with users, accumulating just over 1,000 downloads on the Google Play Store. The company managed to secure around $20 million in funding back in 2020, primarily through self-funding efforts by Mayer. With this strategic shift, Mayer is now setting her sights on innovating in the AI space with Dazzle.