Columbia Alumni’s AI Startup “August” Secures $7M to Serve Midsize Law Firms

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New York-based AI startup August, founded in 2023 by Columbia University graduates Rutvik Rau, Thomas Bueler-Faudree, and Joseph Parker, has raised $7 million in seed funding to expand its legal technology solutions for midsize law firms. The round was led by NEA and Pear VC, with additional backing from notable angel investors, including Gokul Rajaram, Ramp’s VP of product Geoff Charles, OpenAI’s head of engineering David Azose, and Bain Capital Ventures partner Kevin Zhang.

August’s AI platform automates document-heavy and repetitive legal tasks, such as processing case law, contracts, and filings. By streamlining paperwork, the technology allows lawyers to focus on higher-value activities like client engagement and strategic planning—an especially valuable advantage for midsize firms that lack the resources of larger competitors.

Currently operating with a 12-person team, August plans to grow its workforce to 25–30 employees by the end of 2025. CEO Rutvik Rau emphasized that AI should act as a “strategic partner” to lawyers, boosting productivity while enhancing client service.

August enters a competitive legal AI market dominated by players like Harvey, an OpenAI-backed startup serving top-tier firms and large professional services organizations. Despite this, August is positioning itself as the go-to solution for mid-market legal practices seeking affordable and efficient AI-driven tools.

GlobalFoundries Q3 Outlook Disappoints Amid Weak Smartphone Demand

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GlobalFoundries, the world’s third-largest contract chipmaker, projected third-quarter revenue and profit below Wall Street expectations as the recovery in consumer electronics demand, particularly smartphones, remains sluggish. Shares fell 6% in premarket trading, adding to a roughly 15% decline this year.

U.S. tariffs and broader economic uncertainty have dampened smartphone sales, with IDC data showing global growth slowing to just 1% in the June quarter. CEO Tim Breen, who took over in February, said the company is awaiting a “return to meaningful growth” in consumer-driven markets.

For Q3, GlobalFoundries expects net revenue of $1.68 billion (±$25 million), versus analysts’ estimates of $1.79 billion. Adjusted EPS is forecast at $0.38 (±$0.05), below the $0.41 consensus.

Despite the weak outlook, the company beat expectations in Q2 thanks to cost controls and strength in automotive and datacenter segments. Revenue for the quarter rose 3.7% to $1.69 billion, slightly above forecasts, while adjusted EPS reached $0.42 against the $0.35 estimate.

GlobalFoundries is expanding in automotive with a chipmaking deal with Continental and the July acquisition of chip architecture supplier MIPS to strengthen industrial and AI processor offerings. In June, it raised its total investment plans to $16 billion, including $1 billion more for capital spending and $3 billion for R&D in emerging chip technologies for EVs and AI servers.

Abu Dhabi’s MGX Eyes Up to $25 Billion for AI Investments

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Abu Dhabi-based investment group MGX is exploring plans to raise as much as $25 billion from third-party investors to expand its artificial intelligence portfolio, Bloomberg News reported, citing sources familiar with the matter. The group, already backed by Mubadala Investment Co and AI firm G42, would retain these as its main supporters while seeking additional funding from both domestic and international financial and strategic investors.

MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan — the UAE’s national security adviser and brother of President Sheikh Mohammed bin Zayed — has existing stakes in OpenAI and Elon Musk’s xAI. The potential fundraising aims to accelerate its role in the global AI race. No final decision on the plan has yet been made.

The news follows reports from the Financial Times that French AI startup Mistral is in talks with MGX and other investors to secure $1 billion in funding at a $10 billion valuation, further highlighting the UAE’s growing influence in AI investments.