September 27th Newsletter

The Fed's 50 basis point rate cut stabilized markets as unemployment claims fell to 218,000, beating forecasts. Gold prices continue to climb today to a high of 2695.10. In tech, Google sued Microsoft in the EU over cloud computing practices, while OpenAI's CEO proposed a massive data center plan to the White House. Intel saw a boost from Apollo's $5B investment offer, and Meta enhanced its Ray-Ban smart glasses. Novo Nordisk's CEO defended Ozempic's pricing in a U.S. Senate testimony, despite significant U.S.-Germany price disparities ($59/month in Germany vs. $950/month in the US). This week highlighted shifts across finance, tech, and healthcare, from market fluctuations to regulatory challenges and pricing controversies.

Top 5 AI highlights

[1] 🚀Anthropic's ambitious $20-40 billion potential valuation reflects soaring investor confidence in AI, despite market volatility. This funding round, if successful, could reshape the AI landscape, potentially challenging OpenAI's dominance. Anthropic has raised $7.6B to date. Amazon's backing highlights Big Tech's strategy of hedging bets across multiple AI players, ensuring access to cutting-edge technology. More here.

[2] 💼 Sam Altman envisions an "Intelligence Age" of AI-augmented capabilities, raising questions about workforce, ethics, and benefit distribution. OpenAI's restructuring to a for-profit model, giving Altman a 7% stake at a $150 billion valuation, along with Mira Murati's resignation as CTO and other key departures, adds industry turbulence. Read more on the Intelligence Age, Altman’s 7% stake and CTO's resignation.

[3] 📉Despite significant financial investments in AI development, Amazon struggles to match competitors like OpenAI and Google. Setbacks in Alexa upgrades and internal conflicts reveal the challenges in creating reliable, large-scale AI systems. This lag could have far-reaching implications for Amazon's market position, especially in the smart home and e-commerce sectors, where AI integration is becoming increasingly critical. More on WSJ

[4] 🗳️26 states are passing or considering AI regulations in elections, with 19 already enacting laws against AI-generated deepfakes. This patchwork approach, while addressing concerns about misinformation and voter manipulation, risks creating inconsistencies. A unified national framework could better balance innovation with electoral integrity, ensuring democratic processes remain resilient in the AI era. See on Axios.

[5] 👓 Meta unveiled Orion, touted as the most advanced AR glasses ever. Combining sleek design with immersive AR, Orion integrates holographic displays and AI for real-world tasks. While a polished prototype, Orion isn’t for consumers yet, with Meta focusing on improving display quality and affordability. Orion signals a major step toward future AR-driven connectivity. Meanwhile, Meta’s focus on refining this technology reflects its commitment to advancing AR capabilities before a broader release. Details on Meta.

🎁Extra: The .released an AI governance report recently.

Founder’s Corner

Interesting thought on Nike’s incoming CEO Elliot Hill

What we read and listened to this week

• As OpenAI transitions to a for-profit business, executive departures, and internal tensions intensify. (WSJ)

• The DOJ sued Visa, alleging it monopolized the debit card market by paying companies to limit innovation and blocking rivals. (WSJ)

• X's first post-Musk transparency report shows 2,361 actions for hateful content in H1 2024, down from 1M in H2 2021. (X)

• American Airlines may drop Barclays, making Citigroup its exclusive credit card partner amid regulatory uncertainties. (CNBC)

• Elon Musk plans five Mars Starship launches by 2026, warning bureaucracy threatens future missions. (Fox)

• The International Longshoremen’s Association threatens a full strike across U.S. ports, disrupting industries like produce, cars, and pharmaceuticals. (CNN)

• Telegram will now share user IP addresses and phone numbers with authorities after valid legal requests, marking a shift in its privacy policy. (BBG)

• BG2 Podcast w/ Bill Gurley & Brad Gerstner: Ep16. Nuclear Update, AI Fast & Furious.

AI M&A and Fundraising news

September 26:

• GEOX: an AI-powered real estate risk analysis, raises a $19M Series A round.

• Prepared: AI for 911 calls, raised a $27M Series A round.

• Zenlytic: AI-powered data analyst, raised a $9M Series A round.

September 25:

• Convergence Labs: an AI collaborative software development agency, raises a $12M Pre-Seed round.

• Dotfile AI: an AI business onboarding compliance, raises a $6.7M Series A round.

• Findable: an AI to automate building documentation, raises a $10M Series A round. 

• Vsim: an AI robotics simulation startup, raises a $21.5M Seed Round. 

September 24:

• Desia: AI-driven platform for the investment industry, raised a $3.3M pre-seed round. 

• Ephos: a quantum photonics startup, raised an $8.5M Seed round.

• Genlogs: Traffic AI and roadside solutions company, raised a $6M+ Seed round.

• Letta: UC Berkeley startup for AI memory, raised a $10M Seed round.

• Nurix AI: AI-led, human-augmented solutions for enterprises, raised a $27.5M Series A round.

• Qura: AI-powered legal search engine, raised a $2.3M Seed round.

• Sandgarden: an Enterprise AI runtime engine provider, raised a $4.5M Seed round.

• Torq: AI-first security hyper-automation company, raised a $70M Series C round.

• Ujet: San Francisco-based AI startup for customer support, raised a $76M Series D round. 

September 23:

• Distyl AI: automation for enterprise workflows, raised a $20M Series A round.

• Harmonic: an AI for mathematical superintelligence, raised a $75M Series A round.

• Luminance: AI-powered legal tech company, raised a $40M Series B round.

• mbue: AI startup detecting changes in architectural drawings, raised a $1.8M pre-seed round.

• Phacet: an AI startup focused on SME solutions, raised a $4.4M Seed round. 

• Pyka: an autonomous electric aviation technology leader, raised a $40M Series B round. 

• Reframe: AI tools for task management, raised a $5M Seed round. 

• Scribenote: AI-powered medical scribe for veterinarians, raised a $8.2M Seed round. 

September 20:

• Arcade: a GenAI marketplace for product creation, raised a $17M Seed round.

• Qure.ai: a Global healthcare AI innovator, raised a $65M 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.