Daily TEA – The Doom of SaaS Might Start at Starbucks
Manus adds Branch, HyperTexting makes the web scroll, an AI agent runs a $100M raise, and Character.AI microdramas talk back
Hello, dear TEA-mates! Here is what you need to know today.
1. ☕ Starbucks Is Building Its Own Software to Drop Microsoft and IBM
Starbucks is building its own software with the help of AI to replace applications it currently licenses from companies such as Microsoft and IBM, according to an internal presentation reviewed by Bloomberg News. The company is developing an alternative to a Microsoft system that tracks inventory and to an IBM tool that manages store maintenance. Some of the Starbucks-built software could begin rolling out by the end of next year, pending the results of testing. The effort points to a wider move by large enterprises to use AI coding tools to cut recurring software licensing costs and build systems tailored to their own operations. (Read More)
🫖 TEA For Thought: “If big companies like Starbucks are replacing SaaS with custom, self-built apps, imagine what small companies will do. The doom of SaaS might not be too far away.”
2. 🌿 Manus Adds “Branch” to Split One Chat Into Many
Manus, the AI agent platform now part of Meta, launched a feature called Branch (Session Branching) on July 9. Clicking a branch icon beneath any message opens a parallel session that inherits everything up to that point, the user’s instructions, uploaded files, and full conversation history, while leaving the original session untouched. Each branch keeps its own isolated copy of the context, so parallel directions do not bleed into one another, and a “Branched from” breadcrumb links every new session back to its origin. Manus positions it for turning one starting point into several outputs at once, such as converting a single set of meeting notes into a task list, a manager update, and a slide outline in parallel. Branch is available to all users in standard Manus chat sessions, though not yet in Web Builder sessions. (Read More)
🫖 TEA For Thought: “Manus is really, really good if you haven’t tried it out. Too bad how it turned out, controlled by the CCP.”
3. 📱 A New App Makes the Whole Web Scroll Like a Feed
HyperTexting, a new iOS app from 20-year tech veteran Caleb Hailey and his company Herd Works, turns the open web into a scrollable, social-media-style feed. Users follow websites, news outlets, blogs, and newsletters with a tap, then read articles, essays, and posts in an algorithm-free, reverse-chronological timeline. The app runs on RSS under the hood but does not market the protocol, aiming to reach the mainstream users who never adopted readers like the shuttered Google Reader. It also lets users publish to their own site (a WordPress blog, a Ghost newsletter, or a static site built with Hugo or Hailey’s own HyperTemplates), with posts linking back to the source and surfacing in followers’ feeds. An “Explore” tab highlights trending content, and an optional Safari extension adds new sites to follow while browsing. HyperTexting is a free iOS download, with possible future premium features or a single sponsored post per day. (Read More)
🫖 TEA For Thought: “This is pretty cool. It is basically a curator, but also a kind of scaffolder that people would still want to have.”
4. 💸 An AI Startup Let Its Agent Run Its Own $100M Raise
Lyzr, a three-year-old Jersey City, New Jersey startup that helps enterprises build AI agents, used its own AI agent to run its $100 million Series B, closed at a roughly $500 million valuation, according to Bloomberg. The agent reportedly fielded questions from more than 130 investors, drafted investment memos, and even tracked which slides backers lingered on, effectively running point on the round while proving the product works. Lyzr says it drew about $400 million in interest from Silicon Valley, the Middle East, and financial-sector investors, without a founder ever flying out for the traditional coffee meetings and warm intros up and down Sand Hill Road. The detail says as much about the moment as the milestone: capital is chasing AI so hard that founders with traction can raise nine figures without leaving their desks. (Read More)
🫖 TEA For Thought: “There is nothing that AI can’t do. The bottleneck is us.”
5. 🎬 Character.AI Makes Microdramas You Can Talk Back To
Character.AI is producing its own microdramas built with AI characters, with a twist tied to its core product: users older than 18 can chat with a show’s characters, ask them questions, and roleplay alternate storylines. The company is starting with three series, a romance called “Last Summer,” a horror titled “The Nighttime Game,” and a Hunger Games-style survival drama named “Eden Fall,” all created with AI production tools. Character.AI says the current studio-led model is a step toward eventually handing users creator tools to make and share their own characters and series. The move extends the startup’s shift toward entertainment, following earlier features like Lorebook for world-building and Books for inserting users into classic literature, plus new tests of audio series (c.ai FM) and fiction (c.ai Reads). Users spent more than 950 minutes per month on Character.AI in the first half of 2026, according to Sensor Tower. (Read More)
🫖 TEA For Thought: “This is pretty cool! The issue is the cost. Video generation is not cheap. There is a reason Sora got shut down by OpenAI.”
🛠️ Skill of the Day
The Build-or-Buy Advisor: decide whether to build a custom tool or pay for software, before you burn money or a weekend on the wrong one.
You are a pragmatic operations advisor. I am deciding whether to BUILD a custom
tool (possibly with AI help) or BUY an existing software subscription for a
specific job.
The job I need done: [DESCRIBE THE TASK, WHO USES IT, AND HOW OFTEN].
Tools I am considering buying: [LIST OPTIONS + MONTHLY PRICE, OR "none yet"].
My skills and time: [E.G. "I can prompt AI but not code" OR "small team, no engineers"].
Do this:
1. List the 3 to 5 real requirements this job actually has (must-haves vs nice-to-haves).
2. Give a BUILD estimate: rough effort, ongoing maintenance, and what breaks when I am away.
3. Give a BUY estimate: yearly cost, lock-in, and what I give up.
4. Name the hidden costs each side tends to hide.
5. Give one clear recommendation, plus the single fact that would flip it.
Be blunt. If I am underestimating what it takes to maintain a self-built tool, say so.
Paste into ChatGPT, Claude, or your tool of choice. Replace the bracketed bits with your own.
TEAHEE Moment
Stay sharp, stay informed. See you tomorrow.
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