October 18 Newsletter

This week saw significant developments across various sectors. The U.S. Producer Price Index (PPI) remained flat, supporting JPMorgan's outlook for a "soft landing" for the economy. Mortgage rates on 30-year fixed loans rose to 6.52%, up 16 points, leading to steep drops in home-purchase. United Airlines' stock surged 12.4% following strong earnings and a $1.5 billion buyback announcement. Alarming call for subscription companies, the FTC's new "click to cancel" rule, effective in 180 days, will make subscription cancellations easier. In the corporate world, Uber is reportedly considering a bid for Expedia. Additionally, PepsiCo acquired Siete Foods for $1.2 billion, expecting to finalize by mid-2025. Last but not least, Hurricanes Milton & Helene are expected to cause $50B of losses each, having devastated the southern U.S. states last week.

Top 5 AI highlights

[1] ⚖️ The White House is considering expanding AI chip export bans to Saudi Arabia and UAE, following China restrictions. This targets countries with major AI investments, like Saudi's $40B fund. Our take on this topic is that it could reshape the global AI hardware market and impact Cerebras' IPO plans, given UAE-based G42 accounts for over 83% and 87% of revenue in FY 2023 and 6 months ended June 2024, respectively. Full details from Bloomberg.

[2] ⚡Following Microsoft's partnership with Constellation Energy to reopen Three Mile Island, Google and AWS plan to invest in small modular nuclear reactors for data centers and AI. Google plans 7 reactors with Kairos Power by 2030. AWS invests $500M+ with Dominion Energy and Energy Northwest. Amazon's Climate Fund led X-energy's $500M Series C-1. AI's energy demands prompt power impact monitoring. Read more at Google and CNBC.

[3] 💰The U.K. has secured $8.23 billion from U.S. tech giants like ServiceNow and CoreWeave to enhance its AI and data infrastructure by 2028. As sovereign AI gains traction, this calls into question whether investments should prioritize domestic AI development over foreign projects, highlighting the need to balance corporate growth with national strategic concerns in AI development. More information here.

[4] 💾 TSMC stock surged 9.8% after strong Q3 results, with revenue up 36% and profit up 54%, signaling robust AI chip demand. Nvidia, TSMC's key customer, is expected to report its earnings on November 20th. This follows our reporting last week that Nvidia’s Blackwell is completely sold out for the next 12 months.  See more here.

[5] 🤖Google’s AI is advancing in Africa, aiding speech impairments, healthcare, and education. While promising, challenges like local language support and data privacy persist. Despite its potential to drive development, AI risks widening inequalities as wealthier nations dominate, raising concerns over fair access and long-term impacts. Details on FT. 

Founder’s Corner

Comparing Bootstrapping with VC Funding

What we read and listened to this week

• Google will block all U.S. election ads across its platforms after polls close on Nov. 5 to prevent misinformation (Axios).

• Boeing plans to raise $25B through stock and debt, secure $10B in credit, and cut costs. New CEO Kelly Ortberg's earnings call is on October 23 (CNBC).

• NASA launched a $5.2 billion mission to scan Europa, Jupiter's moon, for conditions supporting extraterrestrial life (Bloomberg).

• Walgreens will close 1,200 stores by 2027 due to online competition and declining prescription profits (CNN).

• ASML shares dropped 16%, losing $53B in value, due to disappointing sales forecasts and delays (CNBC).

• SpaceX sues California Coastal Commission over launch restrictions, aiming for 50 annual rocket launches (TC).

AI M&A and Fundraising news

October 17:

• Abel: AI-driven police reports from body cams, raised a $5M Seed round.

• Agency: an AI focused on customer service management, raised a $12M Seed round.

• Autone: AI inventory platform for retail brands, raised a $17M Series A round.

• BackOps.ai: AI automating supply chain logistics, raised a $2M Pre-seed round.

October 16:

• Agtonomy: AI autonomous equipment for farmers, raised a $10M Series A extension.

• Capacity: AI-powered business support automation, raised a $26M Series D round.

• Lightmatter: Photonic processors for AI tasks, raised a $400M Series D round.

• Vanilla: AI for estate planning and taxes, raised a $35M round.
  
  

October 15:

• Beacon AI: an AI aviation intelligence startup, raised a $15 million Series A round. 

• Concourse: AI agents for corporate finance, raised a $4.7M Seed round.

• COVU: an AI insurance platform, raised a $12.5M Series A round.

• Decagon: AI customer service agents, raised a $65M Series B round.

• Early: AI for automated unit testing, raised a $5M Seed round.

• FullyRamped: AI training for sales reps in virtual environments, raised a $2.3M Pre-seed round.

• Galileo: AI model monitoring tools, raised a $45M Series B round.

• Gladia: Audio intelligence API, raised a $16M Series A round.

• Neuron7: AI-powered service and repair operations platform, raised a $44M Series B round.

• Omnea: an AI for managing supplier risk and procurement, raised a $20M round.

• OroraTech: AI-powered wildfire monitoring via satellites, raised a $27.3M Series B round.

• Shift Bioscience: AI cell simulation platform, raised a $16M Seed round.

• Strella: AI-moderated interviews for customer insights, raised a $4M Series A round.

• Xscape Photonics: Photonic chips for AI data centers, raised a $44M Series A round.

October 14:

• ApertureData: Multimodal database, raised a $5.25M Seed round.

• Dreamwell AI: Automating influencer marketing, raised a $2.5M pre-seed round led by Draper Associates.

• Path Robotics: Autonomous robotic welding systems, raised a $100M round.

October 11:

• Anam: AI personas API, raised a $2.3M Pre-seed round.

• Liner: Academic search engine, raised a $29M Series B round.

October 10:

• Document Crunch: AI contract review for construction, raised a $21.5M Series B round.

• Noetica: AI for corporate debt and M&A, raised a $22M Series A round.

• Numeric: Accounting close automation, raised a $28M Series A round.

• Qantev: AI-powered claims management, raised a $33M Series B round.

• RadiantGraph: AI-powered health plan engagement, raised a $11M Series A round.

• Reliance AI: AI data governance, raised a $32M Series B round.

• Suki: AI assistant for doctors, raised a $70M Series D round.

Attached to this email, you’ll find a summary of this week’s highlights and the financial performance of select public companies, providing you with a snapshot of recent market movements.