September 20th Newsletter

This week's financial landscape is buzzing with pivotal developments. The Fed's 50-basis-point rate cut to 4.75%-5.00% on Wednesday spurred the market to close at a record high on Thursday. Tech giants are making waves: Apple faces a 13% dip in iPhone 16 pre-orders, while Amazon tightens its return-to-office policy. Media shake-ups continue with Murdoch's succession battle and Disney-DirecTV's channel restoration deal. Nike announces that CEO John Donahoe will step down on October 13, with Elliot Hill returning as his successor. Elsewhere, Tupperware filed for bankruptcy, highlighting challenges in the consumer goods sector. Additionally, all independent board members departed from 23andMe's board, signaling potential shifts in the company’s development. These events paint a complex picture for investors navigating today's dynamic and responsive market.

Top 5 AI highlights

[1]🚀Fei-Fei Li's World Labs raised $230M, achieving a $1B valuation. The AI startup, backed by Andreessen Horowitz, develops "large world models" for 3D interactions, targeting game studios, designers, and engineers. See more on TechCrunch and also an interview of Fei-Fei Li on Bloomberg.

[2]💼Intel's stock surged after securing Amazon's AWS as a customer for custom AI chips and obtaining $3 billion in US funding for military chip production. This follows an $8.5 billion grant from the US government earlier this year. The multibillion-dollar AWS deal utilizes Intel's 18A process, bolstering turnaround efforts. Despite a 58% stock decline this year, these developments, alongside cost-cutting measures and a potential Altera stake sale, signal positive momentum for the company—details on Reuters and Bloomberg.

[3]🔍Sam Altman left OpenAI's Safety and Security Committee, now led by Zico Kolter, to improve independent governance. This follows recent turmoil including board changes and employee exits. The move addresses concerns over balancing safety and profits. Meanwhile, OpenAI's fundraising could value it at $150 billion, amid calls for stricter AI regulation. Read more on Times.

[4]🏗️Microsoft is partnering with Constellation Energy to power its data centers using nuclear energy from the revived Three Mile Island plant. Set to restart by 2028, the $1.6 billion project addresses Microsoft’s growing electricity needs for AI, with the 20-year deal marking Constellation’s largest power purchase agreement. This partnership underscores the increasing energy demands of AI development while adhering to sustainability goals. More on CNBC.

[5] 🎬 Lionsgate is partnering with AI startup Runway to integrate generative AI into its movie production process. Initially focused on preproduction tasks like storyboarding and visual effects, the AI tools aim to save millions by streamlining workflows. While AI use in Hollywood raises copyright concerns, Lionsgate hopes this innovation will enhance its lower-budget films and keep it competitive in the industry. Learn more about Lionsgate's AI strategy.

Founder’s Corner

How to Get Startup Ideas by Jared Friedman, Partner at Y Combinator

What we read and listened to this week

• DOT approves $1.9B Alaska-Hawaiian Airlines merger, securing consumer protections for rewards and essential routes (Skift)

• Neuralink's vision-restoring brain implant, "Blindsight," received the FDA's breakthrough device designation to accelerate development (Reuters)

• JPMorgan is in advanced talks with Apple to take over its $17 billion credit card program, replacing Goldman Sachs. Negotiations continue over terms, rewards, and outstanding balances (WSJ)

• Disney and DirecTV reached a deal restoring access to ABC, ESPN, and Disney-owned networks for 11 million subscribers. The agreement introduces flexible genre-specific programming packages, including Disney's streaming services. (Reuters)

• Nike CEO John Donahoe steps down October 13; Elliott Hill returns to restore innovation and partnerships (LinkedIn)

• Amazon mandates five-day in-office work starting January; CEO Jassy cites collaboration benefits amid employee concerns (NYT)

• Acquired Podcast: Mark Zuckerberg discusses Meta’s strategy, AI, VR, AR, and leadership.(ACQ)

AI M&A and Fundraising news

September 19:

• Brightband: AI-driven weather forecasting technology, raised a $10M Series A round.

• Fathom: AI notetaker, raised a $17M Series A round.

• Ferrum Health: Clinical AI platform, raised a $16M Series A round.

• Mercor: AI hiring platform, raised a $30M Series A round.

• PictorLabs: AI-powered virtual staining, raised a $30M Series B round.

• Statt: AI regulatory and policy insights, raised a $2.8M Seed round.

• Vahan: AI recruitment chatbot, raised a $10M Series B round.

September 18:

• Cudis: AI-powered health ring, raised a $5M seed round.

• Fal.ai: an AI-generated media platform, raised $23M for Series A and Seed round.

• Roots Automation: a generative AI model for insurance claims, raised a $22.2M Series B round.

• Wayfaster: an AI for interview screening calls, raised a $2.6M Seed round.

September 17, 2024:

• Arzeda: an AI to design proteins for natural sweeteners, raised a $38M round.

• Cybord: an AI quality and traceability solution for electronics manufacturing, raised an $8.7M Series A round.

• Hydden: an AI-powered platform for continuously monitoring user accounts and permissions, raised a $4.4M Seed round led by Access Venture Partners.

• Intezer: an AI-powered security operations platform, raised a $33M Series C round.

• Mindtrip: an AI trip planner, raised $12M in funding.

• Pikommerce: Autonomous pick & pack robots, raised a $3.4M Seed round.

• Velou: an AI-powered e-commerce product catalog optimization platform, raised a $5M Seed extension round.

• VidLab7: a personalized videos platform, raised a $3.7M Seed round.

• Zevero: an AI-driven carbon emissions measurement and reporting platform, raised a $7M Seed round.

September 16, 2024:

• 11x: AI employees for GTM teams, raised a $24M Series A round.

• Samp: an AI digital twin solution, raised $6.5M.

• Supermaven: an AI coding copilot, raised a $12M Series A round.

• Timefold: AI for scheduling and routing, raised a $6.6M Seed round.

• Wealth.com: an AI-powered platform for financial advisors to create, manage, and update estate plans, raised a $30M Series A 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.