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

Former Yahoo CEO Marissa Mayer is closing her consumer software startup, Sunshine, and selling its assets to her new AI startup, Dazzle. The news was first reported by Wired, which cited an email sent to Sunshine’s shareholders.

According to the report, Dazzle is setting out to build an AI personal assistant. All of Sunshine’s employees will move to the new company.

Almost all of Sunshine’s investors have approved the deal. These investors include Norwest Venture Partners, Felicis Partners, and SV Angel.

Sunshine was originally founded in 2018. It first launched with a subscription app for contact management called Sunshine Contacts. That product saw little adoption, largely due to privacy concerns, and did not thrive. In 2024, the service added event management and photo sharing features that incorporated AI, but this also met with little success. Both apps have been downloaded just over one thousand times on the Google Play Store.

The company had raised about twenty million dollars in 2020. According to Mayer, the venture was largely self-funded.