January 17th Newsletter

Before we unpack this week’s actions, click here for our deck highlighting the financials from selected public companies.

Happy Friday! December’s 3.2% CPI beat expectations of 3.3%, signaling cooling inflation. However, strong jobs data has delayed Fed rate cut forecasts to June, with warnings of potential hikes. The SEC sued Elon Musk for failing to disclose his growing Twitter stake, raising transparency concerns. Intel Capital plans to split from Intel by late 2025, signaling a strategic shift. Meta disbanded its DEI team, while Chinese app RedNote topped Apple’s app store as TikTok faces U.S. scrutiny. Warner, Sony, and Universal Music canceled Grammy Week events, redirecting funds to wildfire relief amid Los Angeles fires. These key updates set the stage for major changes across industries with Q4 earnings kicking off this week, here is the full calendar.

We have recently published a new series called Company Spotlight, please access it here and let us know if you have any companies that you would like to see next.

Top 5 AI highlights

[1] 🤖 OpenAI has launched Tasks, a new beta feature in ChatGPT allowing Plus, Team, and Pro subscribers to schedule actions and reminders. Designed to position ChatGPT as a versatile digital assistant, Tasks enables users to set one-time or recurring prompts, managed via chat or a dedicated web section. While enhancing functionality, this reflects OpenAI’s strategy to monetize AI services through premium tiers. Still in beta, Tasks signals broader ambitions to compete with assistants like Siri and Google Assistant. In the meantime, OpenAI added Blackstone executive Adebayo Ogunlesi, as it shifts to a for-profit model. See more on The Verge and OpenAI.

[2] 🏢 Microsoft announced the formation of a new AI-focused group, Core AI - Platform and Tools, led by Jay Parikh, former Lacework CEO and Meta engineering head. Tasked with building Microsoft’s end-to-end Copilot and AI stack for internal and external use, the group will integrate AI platform and developer teams. This move strengthens Microsoft’s AI leadership amid its complex partnership with OpenAI. By centralizing innovation and infrastructure, Microsoft aims to outpace competitors in providing scalable AI tools for third-party applications. More on CNBC

[3] 💬 Reddit released Reddit Answers this week, a conversational AI tool that enhances search functionality by leveraging the platform’s unique user-generated content with 57 million daily active users. Aimed at competing with Google, the tool positions Reddit as a leader in niche community knowledge while capitalizing on proprietary data. By prioritizing utility over ad expansion, it could boost engagement and attract new users. However, challenges like community backlash and competition from AI giants remain. If successful, it may redefine how tech platforms monetize their core assets. Check it out

[4] 🏥 Nvidia partnered with Illumina and the Mayo Clinic to drive AI adoption in healthcare, targeting the $10 trillion global market. Illumina will use Nvidia’s generative AI for biology and chemistry, while Mayo Clinic integrates its hardware and software for digital pathology. Nvidia envisions AI transforming drug development, clinical trials, and surgical tools, enabling virtual digital humans and faster lab simulations. By expanding AI applications beyond data centers, Nvidia aims to revolutionize healthcare, positioning itself at the forefront of a rapidly evolving, high-potential industry. Details on Bloomberg

[5] ⚡ President Joe Biden issued an executive order to accelerate AI infrastructure development, directing federal agencies to fast-track permitting for data centers and clean power facilities. Developers must cover costs and use renewable energy to meet AI demands, which are projected to triple U.S. electricity usage by 2028. The initiative aims to enhance U.S. national security and reduce reliance on foreign AI tools. The White House also unveiled new export limits on advanced AI chips, targeting China and Russia, leaving implementation to the incoming Trump administration. Elsewhere Macquarie to invest up to $5 billion in Applied Digital AI Data Centers. More details on Yahoo, AP News and WSJ.

Founder’s Corner

2024 Q4 Fundraising Benchmarks

What we read and listened to this week

• Apple Faces $1.8B UK Class Action Over App Store Fees in Landmark Trial (USA)

• China Considers Musk-Led TikTok US Acquisition Amid Looming Ban and Supreme Court Ruling (BBG)

• DOT sues Southwest Airlines for Chronically Delayed Flights (USDOT)

• Go Slow to Go Fast: Software Building and Investing (Podcast interview w/Chetan Puttagunta, Benchmark Partners) (Apple)

• Rashida Jones stepped down as MSNBC president on Tuesday, and Rebecca Kutler was named interim leader. (NBC)

• Robinhood fined $45M by SEC for securities law violations, data misreporting, and compliance failures. (CNBC)

• T-Mobile Acquires Vistar Media for $600M to Transform Digital Out-of-Home Advertising (TM)

AI M&A and Fundraising news (Jan 9 — Jan 16)

• Arva AI: AI to automate Know Your Business processes for banks and fintech companies, raised a $3 million Seed.

• BforeAI: AI to predict and block cyberattacks, raised a $10 million Series B

• Bioptimus: Foundational model for Biology, raised a $41 million Series A

• Boardy: AI networking friend, raised a $8 million seed

• Daash Intelligence:  AI-powered

• Eve: AI tools for law firms, raised a $47 million Series A

• Genesy: AI-driven sales agent, raised a $5.1 million seed round

• Intelex Vision: Real-time AI video surveillance, raised £5.6 million in Series A 

• Labviva: AI procurement platform for life sciences, raised $25 million in Series B 

• Maki: AI-driven conversational agents, raised a $28.6 million Series A

• Mako AI:  AI private equity associate, raised a $1.55 million Seed.

• MetAI: AI-driven digital twin and synthetic data generation, raised a $4 million Seed.

• Nevermind: allow AI agents to engage in AI-to-AI commerce, raised $4 million

• Orchid: AI to provide a unified view of all user access points, raised $36 million.

• Overland AI: Developer for off-road self-driving systems for the military, raised a $32 million Series A

• Pipe17: AI-driven platform for retailers raised $15.5 million Series A

• qBiq: GenAI tool for Real Estate layout design, raised a $16 million Series A

• Qventus: AI tool to automate health care work, raised a $105 million Series D

• Reducto: AI to turn PDFs and spreadsheets into data LLMs can use, raised a $8.4 million seed

• StackGen:  AI to auto-generate infrastructure from code, raised a $12.3 million Seed.

• Synthesia: AI-power video generation tool, raised a $180 million Series D

• Thoras: AI-driven platform helps businesses manage their cloud computing resources, raised a $5 million Seed.

• Overland AI: Developer of Advanced autonomy for UGVs, raised a $32 million Series A.