August 28th Newsletter

Markets rallied as Fed Chair Powell signaled potential rate cuts, citing rising risks while reaffirming Fed independence and the 2% inflation goal. He also addressed political tension as Governor Lisa Cook plans to challenge her removal after Trump’s dismissal attempt. Dealmaking surged this summer, crossing the $1 trillion mark amid a flurry of August activity. The U.S. government acquired a 9.9% Intel stake for $8.9B via CHIPS Act funds. Coca-Cola may offload Costa Coffee for £2B, and Keurig Dr Pepper’s $18B JDE Peet’s deal will split it into two beverage giants. Digital infrastructure securitizations, driven by AI-fueled data center demand, are projected to hit $115B by 2026. ByteDance eyes a $330B valuation with planned employee share buyback, [mention Meta], and Klarna plans a $13–14B IPO next month. 

Top 5 AI Highlights

[1] 💰 OpenAI’s employee share sale may reach $8B at a $500B valuation, rivaling all 2024 startup secondaries combined. SoftBank leads with $1B, deepening its AI investment as talent wars intensify. This follows a recent equity raise of $8.3B at a $300B valuation from August 1st. Latest details from The Information and NYT.

[2] ⚖️ Elon Musk’s xAI is suing Apple and OpenAI, alleging they conspired to stifle AI competition through exclusive ChatGPT integration, seeking billions in damages and triggering key antitrust questions around AI markets. More from Reuters.

[3] 📚 Anthropic settled a book-training lawsuit, avoiding “significant financial penalties” tied to pirated content, despite a fair use win. Plaintiffs hailed the undisclosed agreement as a “historic” outcome. See more on TechCrunch.

[4] 🤖 Melania Trump will lead the Presidential AI Challenge, aiming to inspire K–12 students to use AI for social impact, part of a broader push to become “First Lady of Technology” amid rising U.S. innovation efforts. Meanwhile, AI’s risks are under scrutiny after a teen’s suicide, following months of interactions with a chatbot, led to a wrongful death lawsuit against OpenAI. More from NY Post and NYT.

[5] 🔍 Apple is exploring a Google Gemini-powered Siri upgrade, weighing internal vs. external AI models. Talks remain early, with no deal yet, as Apple scrambles to catch up in generative AI. See more from BBG.

Founder’s Corner

A “good” graduation rate from Seed to Series B is 25-30%

What We Read This Week

• Nvidia beat estimates with Q2 revenue up 56% YoY to $46.74B, fueled by $41.1B in data center sales, up 56% YoY. Shares slipped 3% after hours on Wednesday as data center revenue came in just below analyst expectations. Despite record $46.7B in total revenue and solid Q3 guidance, China export curbs and H20 chip restrictions tempered investor enthusiasm. (WSJ)

• Snowflake beat sales forecasts $1.09B over analyst expectations of $1.04 billion, easing AI competition fears. Shares surged 13% post-market, extending YTD gains to 30% despite recent sector weakness. (BBG)

• Meta’s superintelligence push faces early turbulence as eight key AI staff, including researchers, engineers, and a senior product leader, exit amid internal tensions, pay disparities, and reorganizations, raising questions about stability. (Business Insider)

• Google cut 35% of managers overseeing small teams, aiming to streamline operations and reduce bureaucracy. Many shifted to individual contributor roles as the company pushes for efficiency over headcount growth. (CNBC)

• YouTube TV avoids blackout of Fox channels with a short-term extension amid fee disputes. Key for NFL season viewers, but uncertainty lingers as talks on long-term deal continue. (YouTube)

AI Fundraising news (Aug 22 — Aug 28)

• AiGent: AI-powered distributed power plants startup, raised a $6M Seed

• Assort Health: AI systems for handling patient calls, raised a $50M Series B

• Attio: AI-driven CRM for go-to-market operations, raised a $52M Series B

• Aurasell: AI-powered CRM unifying sales and marketing tools, raised a $30M Seed

• Barti: EHR and AI tools for eye care practices, raised a $12M Series A

• Central: AI software for payroll, HR, and finance in Slack, raised a $8.6M Seed

• Creem: Financial tools for AI startups' global ops, raised a $2.1M Preseed

• Holiwise: AI travel planner for instant bookings, raised a $1.7M Preseed

• Interhuman AI: AI that interprets human behaviors in conversation, raised a $2.3M Preseed

• Kira: AI-powered OS for embedding financial products, raised a $6.7M Seed

• Nauta: AI software for automating global shipping ops, raised a $7M Seed

• Sleep.ai: Sleep-tracking and coaching software startup, raised $5.5M

• Vox AI: Voice recognition for fast food drive-thrus, raised a $8.7M Seed