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

Former Yahoo CEO Marissa Mayer is shutting down her consumer software startup Sunshine and selling its assets to her new venture, Dazzle, according to a report by Wired, which cited an email sent to Sunshine’s shareholders.

Sources told Wired that Dazzle aims to develop an AI-powered personal assistant, and that all of Sunshine’s employees will transition to the new company as part of the deal.

Almost all of Sunshine’s investors — including Norwest Venture Partners, Felicis Partners, and SV Angel — have reportedly approved the asset transfer, according to people familiar with the matter.

Sunshine’s Short-Lived Journey

Founded in 2018, Sunshine launched with a subscription-based contact management app called “Sunshine Contacts.” The product struggled to gain traction, in part due to privacy concerns, and saw limited adoption.

In 2024, the company expanded its offerings to include event management and photo-sharing tools, both of which incorporated AI-driven features; however, these additions also failed to attract significant user interest. Combined, the apps have been downloaded just over 1,000 times on the Google Play Store.

Sunshine raised around $20 million in 2020, with Mayer noting that the startup was largely self-funded.

A New Chapter with Dazzle

While details about Dazzle remain limited, early reports suggest that Mayer’s new company will focus on building a next-generation AI assistant designed to simplify daily life — potentially an evolution of Sunshine’s earlier ambitions.

The move signals Mayer’s continued interest in AI-driven consumer technology, though now with a sharper focus on intelligent automation and personal productivity.