Neuroscience Experts Warn That Investors’ “Foolish Transhumanist Ideas” May Impede Neurotechnology Advancement

It has been an exciting year for neurotechnology, if one overlooks the interests of its investors. A small brain transplant yielded positive results in August, as researchers decoded the inner thoughts of a paralyzed patient. In October, a procedure restored vision to individuals who had lost their eyesight.

Experts believe the field could benefit from reduced involvement from its high-profile investors, such as Elon Musk and Sam Altman from OpenAI, who are preoccupied with notions of brain uploading and merging with AI.

“It significantly skews the conversation,” noted Marcello Ienca, a neuroethics professor at the Technical University of Munich. “There are ongoing worries about the narratives they propagate.”

Michael Hendricks, a professor of neurobiology at McGill University, remarked that “wealthy individuals fascinated by unrealistic transhumanist dreams” are clouding public perception of neurotechnology’s potential. “While Neuralink is genuinely developing technology for neuroscience, Musk’s comments on topics like telepathy create confusion.”

Over recent years, Silicon Valley companies have increased their investments in neurotechnology, with Altman co-founding Merge Labs, a competitor to Musk’s Neuralink, in August. Firms like Apple and Meta are both in the process of creating wearable devices that utilize neural data, such as a Meta wristband for brainwave monitoring and headphones by Apple.

Ienca asserts that most major tech companies in the U.S. have ongoing research into neurotechnology, such as Google’s Neural Mapping project and Meta’s acquisition of Ctrl Labs. “Neurotech is quickly entering the mainstream,” he observed.

While these technologies show promise for the immediate treatment of various neurological disorders, including ALS, Parkinson’s disease, and paralysis, concerns arise regarding whether investors genuinely aim to cure these ailments.

Musk has indicated that brain-computer interfaces like Neuralink might someday enable people to “upload” their consciousness. Altman remains reticent on the subject yet speaks of “memories” and the potential to “download them into a new or robotic body.” He mentioned on his blog that the anticipated “fusion” of humans and machines could occur through genetic engineering or “implanting electrodes into the brain.” Notably, in 2018, Altman invested in a “100% lethal” brain-uploading startup and paid $10,000 to join its waiting list.

To clarify, both Hendricks and Ienca state that technologies such as brain uploading are still far from being realized, if feasible at all in the foreseeable future. “Biological systems are not akin to computers,” Hendricks emphasized.

Some worry that these ambitions might impede tangible health advancements, potentially leading to regulations that stifle innovation due to fear.




Elon Musk mentioned that individuals “may upload” their memories and “download them into a new or robotic body.” Photo: Gonzalo Fuentes/Reuters

Kristen Matthews, a mental privacy attorney at the Cooley law firm in the U.S., commented on this phenomenon: “Overhyping in science fiction can lead to regulations that obstruct technology advancements capable of genuinely aiding those in need.”

Neuroscientist Hervé Schneweis criticized this as “entirely unrealistic and obscuring genuine inquiries.” He chaired an expert committee that advised UNESCO on global standards for neurotechnology, which were adopted recently.

The current landscape of neurotechnology features three distinct categories. The first encompasses medical devices, such as a brain implant that decodes speech and Neuralink’s electronic chip that allows a man with a spinal cord injury to control a computer. The second includes consumer wearables like EEG earbuds and, more broadly, devices such as Apple’s VisionPro that track eye movements.

Lastly, there are the speculative projects like Nectome, a brain-uploading startup, and Kernel, which aims to connect the brain to a computer, alongside Neuralink’s latest initiatives. trademarking their concept of telepathy.

The first category promises the most significant breakthroughs, such as restoring vision and hearing as well as treating neurodegenerative and possibly psychiatric conditions. However, these medical devices are subject to stringent regulations and are not as advanced as reported by sensationalist media. A recent study criticized “misleading advertisements” surrounding brain-computer interfaces, asserting that the technology remains in its infancy at the outer edges of human neuroscience.

The second category, consumer wearables, presents more complex regulatory challenges. There have been numerous reports of brain-measuring devices breaching privacy, including widely discussed brainwave-monitoring helmets in China purportedly observing construction site laborers. It’s unclear whether these truly enhance productivity or pose legitimate monitoring risks.

“The robustness of the evidence supporting such systems is quite limited, with few studies being reproducible,” Ienca stated.

Hendricks added that devices like the EEG earphones sold by firms such as Emotiv are unlikely to function as effective surveillance tools due to the unreliable nature of the data, akin to the signals produced by a lie detector.

Nevertheless, Schneweis contends that these tools invoke genuine concerns: “If implemented in workplaces, they could monitor mental fatigue, and such data could lead to discrimination.”

On the other hand, speculative applications often rely on the assumption that healthy individuals willingly undergo invasive brain implants to facilitate communication with computers or telekinetic abilities.

This outcome seems improbable. If such advancements occur, they might trigger surveillance concerns. However, Hendricks expressed skepticism regarding the utility of such monitoring, suggesting it would offer no more valuable information than the detailed data tech giants already collect, including web browsing history and purchase information.

“Numerous methods exist to influence individuals using straightforward language and visual mediums,” Hendricks noted. “I doubt [that brain implants] will catch up any time soon.”

Regarding brain uploading, Hendricks believes the concept is rooted in a flawed understanding of technology, wherein individuals perceive the brain as hardware and consciousness as software that can be executed on it, a computer, or a robot.

“If I could truly upload myself to a computer and achieve immortality, I’d be inclined to end my life as long as someone assured me, ‘Oh, you’ll just reside in a metal box over there,'” he commented. “But I doubt many would take that risk. We instinctively recognize it as nonsensical.”

Source: www.theguardian.com

Top UK Tech Investors Warn of “Evacuation” Signals Indicating an AI Stock Bubble

A prominent technology investor in the UK has labeled companies in the artificial intelligence sector as “confusing,” raising alarms about a potential AI stock market bubble.

James Anderson, known for his early investments in Tesla, Amazon, and China’s Tencent and Alibaba, which yielded significant returns for Bailey Gifford’s flagship fund, now serves at Ringott, an Italian investment firm. He noted that he had not observed any signs of an investment bubble until recently, particularly following large valuations announced by OpenAI, the creator of ChatGPT, and its competitor, Humanity.

“In the last few months, what surprised me was the lack of bubble indicators [in AI],” he told the Financial Times.

OpenAI is reportedly in talks for a stock sale that would value the company at $500 billion (£370 billion), a significant increase from its previous valuations of $300 million in April and $157 billion last October. Meanwhile, Humanity has recently seen its valuation nearly triple, reaching $170 billion last month, up from $60 billion in March.

“These rapid valuation increases should raise some questions. Something like Humanity was generating concerns among those looking to invest in OpenAI,” he remarked.

Anderson also expressed unease about Nvidia’s investment of up to $100 billion in OpenAI. Nvidia, a major player in AI infrastructure and the manufacturer of computer chips essential for training AI models, has seen its market valuation soar to $4.5 trillion. According to the agreement, OpenAI pays Nvidia in cash for services, while Nvidia invests in OpenAI with equity.

There has been ongoing commentary on this transaction that likens it to vendor financing, where companies offer financial support to purchasers of their products.

Anderson described himself as a “huge admirer” of Nvidia but indicated that the OpenAI agreement “has caused more concerns than before.”

Citing similar practices during the Dotcom bubble when telecom equipment manufacturers lent money to clients, he noted:

“There weren’t many telecom suppliers from 1999 to 2000, but there’s a familiar pattern. I don’t feel entirely at ease regarding this situation.”

Anderson is currently the managing partner of Lingott’s Innovation Strategy Fund, which is owned by the Agnelli family, known for their control over Ferrari and Juventus FC.

Nvidia and OpenAI were contacted for comments.

Many investors share concerns that stock market valuations may be on the verge of becoming bubbly due to the excitement surrounding AI.

Wolf von Rotberg, a stock strategist at J Safra Sarasin Sustainable Asset Management, cautioned on Tuesday that US stocks were becoming “increasingly absurd” after Donald Trump’s initiation of a trade war.

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“Much of the rebound has been fueled by the highly favorable narrative surrounding AI and the surge in investment. While there’s no clear indication of a bubble, it might mirror the exuberance of previous periods.”

“Current valuations are not far from the peaks of the Dot-Com era in the early 2000s. Likewise, the credit market has traded at historically low-risk spreads over the past 25 years,” Von Rotberg stated.

City Consultant Capital Economics remarked that the market rally needs to deliver more. “With the S&P 500 reaching record highs, it’s no surprise that discussions of a stock market bubble in the US are resurfacing.”

“That said, as enthusiasm for AI continues to escalate, we wouldn’t be shocked if this year’s indices surpass the current forecast of 6,750.”

According to Deutsche Bank Research Institute, searches for “AI Bubble” on Google Trends have declined significantly over the past month.

“One AI bubble has already burst, and that is the notion that there is a bubble,” it concluded.

Source: www.theguardian.com

Trump Signs Executive Order to Transfer TikTok Ownership to U.S. Investors

On Thursday, Donald Trump signed an executive order outlining the terms for the transaction that will transfer ownership of TikTok to US-based owners.

Trump announced that he and Chinese President Xi Jinping had reached a consensus to dissociate the popular social media platform from Chinese ownership, allowing TikTok to continue its operations in the US. He stated that the deal aligns with existing laws that mandate the closure of apps targeting American users unless they are sold to US entities.

“I spoke with President Xi, and he said, ‘Please proceed with that,'” Trump mentioned at a press briefing. “This will always be manipulated in America.”

Under this new arrangement, American investors are expected to acquire the majority of TikTok’s business and will manage the licensed versions of the app’s robust recommendation algorithms. It is anticipated that US entities will hold around 80% of the new spinoff company, with ByteDance and Chinese investors retaining less than 20%. The White House stated that the revamped TikTok will be governed by a seven-member board, composed mainly of American cybersecurity and national security specialists.

JD Vance reported that the new US entity is projected to be valued at $14 billion. He also indicated at the press conference that its estimated valuation is approximately $330 billion, in contrast to Meta, the parent company of Facebook and Instagram, which is estimated at $1.8 trillion.

Leading the group of American TikTok investors is Oracle, a US software giant, which will manage TikTok’s US functions, provide cloud computing for user data storage, and oversee app algorithm licenses. According to White House officials, ByteDance and Chinese authorities will not have access to US user data.

In addition to Oracle and its co-founder Larry Ellison, Trump mentioned that notable investors include media tycoon Rupert Murdoch and the CEO of Dell Technologies. “Great investors. The biggest. They’re not going to get bigger,” Trump stated. Vance noted that details regarding the transaction participants will be disclosed in the upcoming days.

When asked if TikTok would prioritize MAGA-oriented content, Trump responded, “I’ve always liked MAGA-related content, and I could be 100% MAGA-related if feasible,” but emphasized that the app would still promote a diverse range of content, affirming, “All groups will be treated fairly.”

This agreement has been under legal scrutiny for several months and represents a significant shift in the US social media landscape, giving domestic companies increased influence in the industry. TikTok currently has about 180 million users in the United States, and Trump believes it will aid his bid for the 2024 presidential election. This move is part of Trump’s administration’s broader strategy to gain leverage in the tech sector, having recently acquired a 10% stake in chip manufacturer Intel, prompting major companies like Apple and Nvidia to invest significantly domestically.

Trump had previously mentioned that the US government would receive favorable fees from US investors in negotiating deals with China. Last week, he stated: “The US is getting a very paid plus – I call it a paid – just to make a deal.”

However, when pressed on this matter, the president simply stated that the US would collect standard taxes from the new company, adding, “We’re going to make money; we’re going to earn a lot from taxes.”

TikTok has faced bipartisan opposition from lawmakers concerning data privacy and allegations of using the app to spread propaganda or undermine American democracy. Although TikTok has consistently denied these accusations, Congress overwhelmingly voted last year to compel the company to find a US buyer or face a domestic ban.

In January, the Supreme Court unanimously upheld the ban. On his first day in office, Trump issued an executive order delaying the prohibition and subsequently postponed its enforcement. The “TikTok savings” Presidential order Trump signed on Thursday asserted that the agreement conformed to laws established by Congress and represented a “qualified sale” that addressed national security concerns. The agreement is not expected to be finalized for another 120 days.

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At the press conference, Trump mentioned that “young people” were rooting for him to “save TikTok.” He believes he was inspired by Charlie Kirk, a conservative activist who recently encouraged him to engage with social media platforms.

“Charlie was very helpful to me. He said, ‘We should go to TikTok,'” Trump recounted.

Last week, US Treasury Secretary Scott Bescent announced that the US and China had established a trading framework following extensive discussions in Madrid, pivoting on TikTok’s future. China’s chief trade negotiator, Li Chengang, later confirmed the agreement and cautioned against US attempts to “control” Chinese firms.

Trump also alluded to the deal last week but refrained from divulging specific details.

“We’ve also reached agreements concerning “specific” companies that the youth in our nation are eager to see preserved. They will be quite pleased!” he posted on Truth Social.

Source: www.theguardian.com

Trump invites top 220 investors to private dinner to discuss his memo coin

Amazing online announcement Called “the most exclusive invitation in the world,” he followed a tour of the White House with President Trump, a “intimate private dinner” at a Virginia member-only golf club.

Seats will be reserved for each of the top 220 investors in Trump, the cryptocurrency he launched the eve of his inauguration.

On Wednesday, the coin’s biggest buyers announced that they will be invited to meet him, in an astonishing escalation of the Trump family’s efforts to profit from Crypto, a website promoting Trump, the president’s so-called memo coin. The effort was effectively an offer of access to the White House in exchange for an investment in one of Trump’s crypto ventures.

“Get dinner with President Trump and the $Trump community!” the invitation said. “Please let the President know how many card coins you own!”

For months, Trump’s foray into the code has created ethical conflicts with almost precedent in presidential history. When he sold digital currency to the public, Trump also appointed regulators that were cutting crypto enforcement, calling for legislation to boost the outlook for the US industry.

As news of dinner invitations spread across social media, Memecoin’s prices have skyrocketed by over 60%, suggesting investors are in a hurry to accumulate enough coins to compete in the dinner table.

“This is really incredible,” said Corey Frayer, who oversaw the Securities and Exchange Commission’s crypto policy during the Biden administration. “They are making their payment agreements explicit.”

Business entities associated with Trump mean that at least on paper earn a personal profit whenever prices rise. Trump and his business partners also collect fees when the coins are traded. This is a windfall that reached around $100 million in the weeks since the coin debuted in January.

Victoria Haenman, a law professor at Clayton University, said the offer raised concerns about the ways Trump and his business could “manipulate to benefit from the presidency.”

Earlier this year, the SEC issued official guidance that MemeCoins, a kind of cryptocurrency based on online jokes and celebrity mascots, is not subject to agency surveillance. Crypto skeptics criticized the policy as a dangerous move that could open the door to ramp-stretched scams by the Memecoin promoter.

As president, Trump has broad immunity from laws governing conflicts of interest. It was pointed out In the past. White House representatives did not immediately respond to requests for comment. Trump’s son Eric declined to comment, helping to run the Trump organization, sponsoring $Trump’s coin.

Once a cryptocurrency skeptical, Trump embraced digital currency on last year’s campaign trail.

In the fall, Trump and his sons, Donald Jr., Eric and Baron, said they were starting World Liberty Financial, a company that offers digital currency called WLFI. So far, $550 million of these coins have been sold. According to the company.

Shortly afterwards, Trump’s social media company Trump Media and Technology Group was to provide crypto-related financial products to amateur investors and announced a partnership with digital trading platform crypto.com.

However, Trump’s Memecoin venture is gaining the most attention.

Just three days before taking office, Trump posted about his social media site Truth Social that he was selling coins. $Trump’s sales quickly surged, and the presidential election became a crypto billionaire on paper.

Memecoin tended to rise and fall quickly, and $Trump’s price quickly became a crater. Traders who accumulated coins suffered cumulative losses of over $2 billion.

The dinner announcement seemed calculated to ignite more interest in the coin.

When $Trump was sold in January, a large stash of coins was assigned to supporters of the project. However, rules built into the offering prevented insiders from selling coins Until last weekincreasing the fear that they’ll try to offload their holdings and lower the price of $Trump even further.

Instead, prices gradually rose a few days before the invitation was announced, and spiked when the announcement was published.

On the Memecoin website, the $Trump promoter set up the leaderboard of Coin’s biggest investors. This essentially allows buyers to track their locations in rankings. Dinner invitations will be sent to “the top 220 Trump owners with an average of $220” between April 23rd and May 12th, the website said. The top 25 buyers will get access to a reception with Trump and a White House VIP tour before dinner. (At this point, the 25th investor on the chart owns around 4,000 coins, worth around $54,000.

“The more you hold a card and the longer you hold it, the higher your rankings.” The website said.

Dinner with Trump is scheduled to take place at Trump National Golf Club on May 22, the website calls it “the most exclusive life invitation.”

Source: www.nytimes.com

Investors spooked as China’s AI chatbot Deepseek causes global technology stock drop on the stock market

Global tech stocks took a hit on Monday as investors reacted to the emergence of a Chinese chatbot competitor, Deepseek, on Openai’s ChatGpt. This raised concerns about the long-term sustainability of the artificial intelligence boom in the US.

The NASDAQ index in New York, heavily weighted towards tech, dropped as investors processed the news about Deepseek’s latest AI model development.

Companies like Nvidia, valued at over $400 billion, saw significant losses in their market capitalization as shares plummeted. Other tech giants like Alphabet and Meta also experienced declines.

Deepseek’s AI assistant topped the charts on the Apple App Store in the US and UK, surpassing Openai’s ChatGpt.

Stocks of other US-based AI companies like Tesla, Meta, and Amazon also saw declines in early trading.

Deepseek’s claims about developing advanced AI models using fewer chips than competitors have raised doubts around the massive AI investments made by US companies in recent years.

The company utilized lower-powered chips from Nvidia to create its model, highlighting the potential limitations of US technology export bans on China.

Venture capitalist Marc Andreessen likened Deepseek’s achievement to a “Sputnik moment” in the AI industry, signaling a notable disruption.

Deepseek’s R1 model outperforms other leading models in various benchmarks, challenging the dominance of tech giants like Google and Meta.

Founded by entrepreneur Liang Wenfeng, Deepseek focuses on research rather than commercial products, aiming to make AI accessible and affordable to all.

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Deepseek’s disruptive approach to AI has led to questions about the necessity of heavy investments in AI infrastructure and the supremacy of US tech companies in the field.

The pan-European Stoxx 600 and Asian tech stocks also took a hit, reflecting the global impact of Deepseek’s advancements.

Experts in the field acknowledge the significance of Deepseek’s breakthrough, highlighting the potential for innovation without the need for massive resources.

Source: www.theguardian.com

“Dirty Money Prevails: Older Generation Crypto Investors Cash in on ‘Trump Pump'”

MIles, a 37-year-old NHS doctor from London, has been trying to convince friends to buy cryptocurrencies for years. In recent weeks, the “Trump pump” on crypto prices has made them envious. “They watched in frustration as my gamble paid off,” he says.

Despite cashing out around £600,000 to buy a house earlier this year, Miles’ crypto portfolio is now worth £2.3 million. Miles, who invested £4,000 in Bitcoin in 2012, said: ‘It’s defined my life. My pot fluctuates by hundreds of thousands every day and I’ve been through periods of volatility over the years.” he says.

A number of Miles told the Guardian why they became private investors in cryptocurrencies (regular people who buy digital blockchain currencies) and how their investments have paid off over time. I was one of ten people.


Investors see Donald Trump’s return to the White House as a harbinger of a crypto-friendly climate. Photo: Mark Humphrey/AP

Bitcoin’s price has fallen to $97,000 (76,500 sterling) and hit a new all-time high. The Financial Conduct Authority (FCA) has revealed that 12% of UK adults own cryptocurrencies.

The majority of respondents said they entered the crypto market within the past four years, with some using the extra funds they saved during the coronavirus lockdown to jumpstart their previous blockchain currency acquisition process. Some people also purchased coins via user-friendly apps and platforms.

The responses also reflect a growing trend of interest in professions such as education, banking, nursing, and IT investment. “Tech Brothers” are historically associated with the world of cryptocurrencies. argued that such investments were the best or only option for building meaningful personal wealth.

A large number of middle-class respondents lost faith in the existing system and turned to cryptocurrencies in the hope that it would help them achieve life goals such as having children, buying a home, and traveling. He said that he aimed at

Julian, a 57-year-old draftsman, homeowner, and father of four from Nottingham, was one of several respondents who said they bought Bitcoin in anticipation of a spike in inflation.

Source: www.theguardian.com

British flying taxi company seeks investors as funding runs low in the aerospace industry

On a gloomy November day in England’s Cotswolds, a VX4 that looked like a cross between a plane and a helicopter rose from an airport runway, hovered a few feet off the ground before sinking.

It may not have reached that high of an altitude, but it was a seminal moment for British owner Vertical Aerospace. The company has received millions of pounds of support from British taxpayers but is running out of money.

The flight came amid tense negotiations with investors that could see founder Stephen Fitzpatrick lose control to a US hedge fund, with the electric aircraft tethered to the ground for safety. We showed evidence that it is possible to transport people without having to carry them.

Verticals have already experienced what can happen when things go wrong. On a sunny day in August last year, the adhesive holding the blades of one of its eight rotors in place broke, causing the unmanned aircraft to crash onto the runway. The 3.7-ton aircraft crashed into a 30-foot crumpled heap, its blade landing 50 meters away. There were no injuries.

The accident and financial difficulties highlight the difficulty of making flying taxis a reality. Almost a century of effort. Vertical announced on Tuesday that the date its first aircraft would receive approval from UK regulators to carry passengers will be pushed back by another two years to 2028.




Stephen Fitzpatrick founded Vertical in 2016. Photo: Geoff Overs/BBC/Reuters

Vertical initially claimed the aircraft would have room for four people, a range of 160 miles, a top speed of 150 miles per hour, and would enter service by 2025. Vertical chief executive Stuart Simpson confirmed to investors this week that the company had chosen the UK as its destination. A factory that manufactures 200 aircraft a year. But cautious regulators and suppliers paid a price for the ambitious schedule.

A number of startups are trying to develop flying taxis, known in the industry as electric vertical takeoff and landing vehicles (Evtol). For several years, they seemed to be making rapid progress as investors sought empty Teslas, backed by cheap money.

Flying taxi companies such as Joby Aviation and Archer Aviation in the US and Volocopter in Germany have raised large sums of money and built flying prototypes. Three major aircraft manufacturers are participating in this competition through their subsidiaries: Europe’s Airbus, America’s Boeing, and Brazil’s Embraer.

Vertical took advantage of that wave. Fitzpatrick, an entrepreneur who also invests in F1 teams and derives most of his £800 million fortune from energy company Ovo, founded Vertical in 2016. The company was listed on the US stock market in 2021 with a valuation of $2.2 billion.

But rising interest rates and slow development are causing investors to pause before pouring in more money. Vertical’s stock price has fallen 95% since the coronavirus pandemic bubble, valuing it at just $110 million.

U.S.-listed peer Lilium filed for bankruptcy for its German subsidiary last month and is looking for a buyer to rescue it. Bloomberg reported on Wednesday that Chinese automaker Geely is in talks to bail out its Volocopter after its value also fell. Britain’s Rolls-Royce has scrapped plans for a flying taxi business, nearly three years after its plane broke the airspeed record.




A prototype flying taxi being developed in the United Arab Emirates has been unveiled at a taxi rank outside Charing Cross station in London. Photo: David Parry/Pennsylvania

An industry official said, “A large-scale bubble has occurred.” “We’re finally nearing the end.”

In the longer term, concerns remain about how flying taxis in crowded skies will be regulated. However, the industry received some positive news after US authorities issued regulations on how such vehicles should be operated and how pilots should be trained.

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Simpson told investors the company needs about $100 million to cover costs next year. Cash at the end of September was £42.8m.

If negotiations with major financial institutions are successful, the immediate funding crisis may be eased. Fitzpatrick and Vertical have been in talks for nearly a year with Jason Mudrick, an American distressed debt investor who made a fortune investing in “meme stocks” such as AMC Entertainment and GameStop during the pandemic. .

Mudrick proposed converting about half of Vertical’s previous $200 million in financing into equity in exchange for a cash infusion of up to $50 million.

However, in a letter to Vertical’s board last month, he said: “Mr. Fitzpatrick has refused to accept a contractual dilution of approximately 70% of his company’s shares, which he has repeatedly rejected. “There is,” he said.

Mr. Fitzpatrick is seeking a 30% stake, but the deal would leave existing shareholders with only 20% of the company. An agreement could pave the way for other investors to make new equity investments. Candidates could include Virgin Atlantic Airways, American Airlines, and previous investors such as Microsoft and control systems supplier Honeywell.

Vertical boasts a low-cost model of buying off-the-shelf technology from existing suppliers, but it could need $500 million to $1 billion to get through four years without revenue.

Despite investors expressing concerns about launch delays, Simpson said he was “optimistic” about the funding. But with Toyota investing another $500 million in Joby and Beta Technologies raising $300 million last month, some investors believe that if the technology can prove to work, the flying taxi company will still have the cash. He reassured them that they could secure the

“The funding environment is tough and there is a shakeout in the industry,” Simpson said. “I think we’ll be one of the winners.”

Source: www.theguardian.com

Bitcoin reaches all-time high of $75,000 as investors speculate on Trump’s win | Bitcoin

Bitcoin has reached record highs amidst speculation on Donald Trump’s victory in the US presidential election, with many viewing him as a candidate supportive of cryptocurrencies.

The digital currency hit $75,005.08 on Wednesday morning, surpassing its previous peak of $73,797.98 achieved in March.

“Bitcoin’s price seems to be closely tied to President Trump’s standing in the polls and betting markets,” commented AJ Bell analyst Russ Mould ahead of the U.S. presidential election.


Investors believe that a Republican win could lead to increased demand for digital currencies,” he added.

Although Trump previously criticized cryptocurrencies as scams during his tenure, he has since shifted his position and even introduced his own platform for the currency.

Nigel Green from DeVere also stated before the election that “President Trump’s victory could propel the world’s first and largest cryptocurrency to new heights.”

Green added, “If re-elected, there would likely be a focus on deregulation, tax breaks, and economic policies favoring investments like Bitcoin.”

President Trump has vowed to make the United States the “Bitcoin and cryptocurrency capital of the world” and appoint Elon Musk to oversee a comprehensive audit of government spending.

Trump’s corporate tax cuts during his previous term boosted market liquidity and encouraged investment in high-growth assets such as cryptocurrencies.

In September, Trump announced the launch of a digital currency platform named World Liberty Financial with his son and other entrepreneurs, although initial sales were sluggish.

World Liberty Financial provides a lending and borrowing service for cryptocurrencies, akin to platforms like Aave.

Since their inception, cryptocurrencies have made headlines for extreme volatility and the collapse of major industry players, notably the FTX exchange platform.

Leading up to the election, Trump made a purchase at a New York restaurant, touting it as a “historic transaction” and possibly becoming the first former president to use Bitcoin for a transaction.

“Who wants a hamburger?” Trump exclaimed to his followers in September, shortly after the platform’s launch.

Read more of the Guardian’s 2024 US election coverage

Source: www.theguardian.com

Investors React Poorly to CyberCab Self-Driving Car, Tesla’s Value Drops $60 Billion

Tesla shares dropped almost 9% on Friday, erasing roughly $60 billion from the company’s market value following the underwhelming announcement of its highly anticipated robotaxis that failed to impress investors.

The electric vehicle manufacturer’s stock plummeted to $217 at the close of the market after CEO Elon Musk revealed a much-hyped self-driving car at an event in Hollywood. Since the start of the year, the stock price has declined by about 12%.

Musk stated that Tesla would commence the development of a fully autonomous CyberCab by 2026 priced under $30,000 and introduced a van capable of transporting 20 people autonomously within the city, aiming to revolutionize parking.

Prior to the event, he tweeted: “And within 50 years all transportation will be fully autonomous.”

During the presentation, he mentioned that parking would no longer be necessary in the city.

However, analysts were disappointed by the lack of specifics at the event concerning Tesla’s projects and other developments. Musk has a track record of making ambitious projections about future products that often fail to materialize within set deadlines or at all.

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Royal Bank of Canada analyst Tom Narayan remarked in an investor note that the event lacked specifics. He stated, “Investors we spoke to during the event felt that the event glossed over actual figures and timelines.”

“These shortcomings are common at Tesla events, which appear to focus more on promoting and branding Tesla’s vision rather than providing concrete data for analysis. Consequently, we anticipate a decline in the stock price.”

Narayan also mentioned that some investors were anticipating a preview of an affordable car equipped with pedals and a steering wheel set to be launched next year, but no such announcement was made.

Garrett Nelson, an analyst at investment research firm CFRA, expressed disappointment with the revelations about the CyberCab and the lack of information regarding more economical vehicles.

He said: “The event raised numerous questions but was surprisingly brief and resembled more of a controlled demonstration than a comprehensive presentation. We were unsatisfied with the absence of details about [Tesla’s] near-term product plans, which include a more affordable model and the Roadster. Musk previously mentioned on a conference call that production of these models is set for 2025.”

Source: www.theguardian.com

Investors spooked by slowing growth cause Nvidia shares to fall

Shares in the chip designer Nvidia have fallen after investors were spooked by signs of slowing growth and production issues, despite the artificial intelligence company posting a 122% rise in second-quarter revenues compared with the same period last year.

The Silicon Valley company’s revenues for the period more than doubled to $30bn (£23bn), beating average analyst estimates of $28.7bn. However, investors were concerned about signs of a slowdown in growth, in particular around its next-generation AI chips, code-named Blackwell.

The stock fell as much as 7% in pre-market trading, before paring back losses to a 3% fall. The chipmaker is the third most valuable company in the world, with a market value of $3.1tn.

Nvidia said the delivery of its Blackwell chips – which comprises 208bn transistors that carry out calculations to train its large language model – would be delayed by several months from January. Its chief executive, Jensen Huang, has previously said that Blackwell would generate “a lot of revenue” for the business this year.

Simon French, the chief economist and head of research at the investment bank Panmure Liberum told the BBC: “There were just some signs around the edges in numbers that that rate of growth was trying to slow.

“Their current AI chip ‘hopper’ is selling well, but the next one, the next generation Blackwell, has faced some production delays, and that perhaps is one of the reasons why Wall Street, after hours, sold off the stock.”

Speaking to investors and journalists overnight, Nvidia bosses did not detail the extent of the delay for Blackwell deliveries but said manufacturing issues had been addressed by TSMC, the Taiwanese semiconductor firm that builds the US company’s most advanced chips. They added that early samples were now shipping to a small group of customers

The drop in Nvidia’s share price dragged on US markets, in particular the S&P 500 index. Nvidia makes up about 6% of the total value of the index and has helped drive its gains this year, after rising more than 160% over the past 12 months.

Matt Britzman, an analyst at the investment platform Hargreaves Lansdown, said Nvidia was facing the major challenge of how to match the hype. “It’s less about just beating estimates now, markets expect them to be shattered and it’s the scale of the beat that looks to have disappointed a touch.”

While many investors have bought into the theoretical impact of artificial intelligence and claims that it could transform nearly every global industry, French noted that the practical use cases “haven’t yet been proven”.

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“Such are the lofty expectations for this stock, not just as a single company, but its broader economic impact,” he said. “If you’re going to raise expectations that high, then you’ve got to keep growing at spectacular rates .”

However, Britzman cautioned against reading too much into the market reaction, given that investors tended to “overstate” the importance of one set of quarterly results, particularly in the “grand scheme of AI” prospects. Instead, he said companies such as Microsoft and Tesla, and the Facebook and Instagram owner, Meta, were working on a “multi-year, even multi-decade, time frame and investors would be wise to adopt a similar mentality”.

He added: “The question of return on investment, that many AI bears fall back on, simply isn’t the main consideration for Nvidia’s biggest customers at this stage. Like many before, this cycle won’t be a straight line, but while the ‘build it and they will come’ approach continues, it plays right into Nvidia’s hands.”

Source: www.theguardian.com

Class action lawsuit accuses CrowdStrike of defrauding investors | Technology sector

CrowdStrike, the cybersecurity company that caused a massive global computer outage in July, has been sued for misleading investors.

A class action lawsuit filed in Texas by the Plymouth County Retirement Association, a pension fund, alleges that CrowdStrike misled investors by representing its technology as “verified, tested and certified,” when in fact, the investors allege, CrowdStrike's software was anything but.

“Defendants failed to disclose that: (1) CrowdStrike implemented insufficient controls over its Falcon update procedures and did not adequately test Falcon updates before deploying them to customers; (2) this improper software testing created a significant risk that the Falcon updates would cause widespread outages for many of the company's customers; and (3) such outages could, and ultimately did, result in significant reputational damage and legal risk for CrowdStrike.” As a result, the lawsuit alleges, “CrowdStrike's stock price was traded artificially inflated until the widespread outages allowed its stock price to recover.”

“We believe this lawsuit is without merit and will vigorously defend the company,” a CrowdStrike spokesperson said.

Securities fraud lawsuits typically arise after an adverse event has occurred for a company. If the reasons for a decline in a stock price were not clearly disclosed to investors in advance, a defendant may be able to prevail by arguing that the lack of disclosure constituted a fraudulent sale of the relevant shares.

CrowdStrike also faces more general legal liability for the outage. Delta Air Lines Chief Executive Ed Bastian estimated on Wednesday that the outage would force the cancellation of more than 5,000 flights and ultimately cost the company $500 million (£391 million). He said airlines had “no choice” but to seek damages as a result.

“To get priority access to the Delta ecosystem on the technology side, we need to test how it works. We can't just walk into a mission-critical operation that runs 24/7 and say there's a bug,” Bastian added. “We have to protect our shareholders. We have to protect our customers and employees, not just from costs but from damage to our brand and reputation.”

The outage, which crashed roughly 1% of Windows PCs worldwide, was estimated to have cost the Fortune 500 companies in the U.S. alone $5 billion. Nevertheless, the company's most visible response, aside from its efforts to restore service, was to thank “teammates and partners” who helped resolve the outage by sending $10 UberEats gift cards, though Uber quickly blocked the gift cards due to fears of possible fraud.

Source: www.theguardian.com

First Global Event Celebrates Sui with Over 1,000 Builders, Partners, Investors, and Enthusiasts

Grand Cayman, Cayman Islands, April 18, 2024, Chainwire

This annual event is the culmination of Sui's extraordinary debut

Last week, more than 1,000 projects, partners, investors and enthusiasts from 65 countries gathered in Paris for the celebration. Sui Proudly at Layer 1's 1st Global Sui Basecamp Conference.

At its first annual event held during Paris Blockchain Week, Sui was welcomed by developers and builders from around the world during the two-day event. Speakers at Sui She Basecamp spanned all aspects of the industry, from payments to gaming, e-commerce to Major League Sports, and provided commentary through keynotes, panel discussions, and fireside chats.

The event was punctuated by three important announcements. In partnership with Playtron, the Sui team announced: SuiPlay0x1 is the world's first lightweight handheld gaming device designed with native Web3 functionality, promising a new gaming experience. Additionally, First Digital Labs joins the announcement that FDUSD, the fastest growing stablecoin in cryptocurrencies, will become Sui's first native dollar-backed stablecoin, adding that it is already the fastest growing stablecoin in the industry. This will be a boon for the DeFi ecosystem. Finally, Sui announced Enoki, his Web3 utility suite that makes it very easy for businesses to leverage distributed solutions within their applications, products, and services.

Sui Basecamp participants from 65 countries had the opportunity to meet each other in person.

“In building Sui, we started with a blank canvas. We aimed to create a great platform for decentralized applications without the structural limitations found in other blockchains.” said Evan Cheng, co-founder and CEO of Mysten Labs, founder of Sui Network. . “Less than a year after we launched Sui's mainnet, the remarkable strength of Sui's performance has validated that approach, from near-unlimited horizontal scalability to industry-leading execution speed; Achieving the highest number of transactions in a single day of any blockchain to date, Sui's performance has been exceptional and the network has only scratched the surface.”

The industry veterans who founded Sai launched their mainnet nearly a year ago with high expectations, and the network has performed extremely well. Rather than replicating an existing network, the Sui team started from scratch to build an entirely new infrastructure layer that addresses the shortcomings of existing blockchains. They started by creating a new smart contract language, Move, and then created a new object-centric architecture that enables performance and functionality not available on existing blockchains. The result is the industry's only blockchain, a universal coordination layer for intelligent assets.

Sai is the industry leader in delivering ultra-fast transactions with recorded finality times of just 400ms. Similarly, Sui's scalability is also at the highest level, reaching 297,000 TPS in a controlled environment. However, the Sui team is constantly improving its technology. At the conference, members of the Sui team announced the next advancements in speed and scalability: Mysticeti, which significantly reduces the time to finalization of Sui, and Pilotfish, which enables nearly unlimited horizontal scaling for validators. .

And beyond its performance in test environments, Sui has broken records for transactions performed in a single day in just four months, higher than any existing blockchain while fees remain low and stable. Achieved. Remarkably, in almost his year on mainnet, Sui has not experienced a single minute of her downtime.

Gradually, after a series of community events around the world, Sui's early notable milestones, sustained ecosystem growth, and builders bypassed other blockchains to leverage the Sui network. A flurry of media articles highlighting the multiple stories of builders, developers, investors, and the broader community began to understand. The potential of Sui's groundbreaking blockchain technology. The crowd that gathered at Sui Basecamp 2024 represented the culmination of Sui's arrival.

“The overwhelming turnout and vibrant enthusiasm of our inaugural Sui Basecamp event reflects the Sui community, which is fascinated by Sui’s potential to improve people’s lives.” Sui Foundation Money said Greg Ciolounis, Managing Director. “Over the coming months, the Sui Foundation will benefit from the ecosystem of projects leveraging Sui and their applications to make Sui one of the most widely adopted blockchains to solve real-world challenges.” With state-of-the-art technology and web3's most dedicated and professional community behind it, Sui's progress to date will continue to grow this network. It gives you a glimpse of what you can accomplish.”

For more information about the event, please visit sui blog.

contact

Sui Foundation
media@sui.io

Source: www.the-blockchain.com

Investors React to Plans for Increased Spending on AI, Leading to $190 Billion Drop in Meta’s Value

Meta’s stock price tumbled 15% on Wall Street Thursday in response to commitments to ramp up spending on artificial intelligence, resulting in approximately $190 billion being wiped off the market value of the Facebook and Instagram parent company.

During a conference call on Wednesday, Mark Zuckerberg, Meta’s CEO, emphasized the necessity of increasing spending on AI technology in order to generate “significant revenue” from the company’s new AI products. “There is a need for an increase,” he stated.

The stock price of Meta had previously benefited from stringent cost-cutting measures in 2023, which Zuckerberg referred to as “the year of efficiency.” However, investors were spooked when Meta raised the upper limit of its capital spending guidance from $37 billion to $40 billion on Wednesday.

Meta recently launched Llama 3, the latest iteration of its AI model and image generator, which can update images in real-time while users input prompts. This update also sees the expansion of Meta AI, the company’s AI-powered assistant, to more than 10 markets outside the US, including Australia, Canada, Singapore, Nigeria, and Pakistan. Chris Cox, Meta’s chief product officer, mentioned that the company is still working on implementing this in Europe.

The decline in stock price comes after Meta Inc. experienced a record increase in market value in February, adding $196 billion to its market capitalization following the announcement of its first dividend, which was, at the time, the largest single-day gain in Wall Street history. However, Nvidia, a prominent supplier of chips for AI models, later surpassed this record with a $277 billion profit.

Source: www.theguardian.com

Meta’s Profits Soar as Company Shifts Focus to AI and Announces Dividends to Investors

Meta stock soared 15% in after-hours trading. The company’s strong fourth quarter results came a day after CEO Mark Zuckerberg was assaulted during a controversial Congressional hearing.

The company also announced that it would pay investors a dividend of 50 cents per share for the first time and authorized a $50 billion stock repurchase program.

Overall, Meta reported fourth-quarter revenue of $40.1 billion, beating expectations of $39.18 billion and increasing 25% year-over-year. The report comes as Meta, like many major technology companies, seeks to integrate artificial intelligence tools into its core products. In a statement accompanying the report, Zuckerberg said Meta was “a significant step forward in our vision of evolving AI and the Metaverse.”

“We anticipate that our ambitious long-term AI research and product development efforts will require increased infrastructure investment beyond this year,” the company’s press release said.


During last quarter’s earnings call, Zuckerberg touted Meta’s plans to invest in AI, saying it would be the company’s biggest investment area in 2024. Zuckerberg said in a video he shared on Instagram in early January that his company would acquire $9 billion worth of AI. Nvidia chips help scale up AI

Zuckerberg said AI will not only enhance ad campaigns and increase ad revenue, but AI will also be used to support new meta-products such as AI chatbots. Advertising revenue, the company’s core business, was $38.7 billion, compared with $31.25 billion in the same period last year. His Meta hardware products, such as the Quest 3 VR headset, still don’t account for a large percentage of the company’s revenue. Zuckerberg said on a conference call Thursday that he expects Meta to begin rolling out its AI services more broadly in the coming months.

Meta has laid off more than 20,000 employees in 2023 as it focuses on cost-cutting measures as part of what Zuckerberg has dubbed the “Year of Efficiency.” These efforts seem to have paid off, with Meta’s operating profit margin doubling from 20% in the same period of 2022 to 41%. Meanwhile, expenses decreased 8% year-on-year to $23.73 billion. Chief Financial Officer Susan Lee said on a conference call that Meta had more than 67,300 employees at the end of the fourth quarter, down 22% from a year ago, but that “hiring efforts have resumed. '', which resulted in a 2% increase from the third quarter.

Regulatory headwinds are probably top of mind for investors following Meta’s public taunts during Wednesday’s Congressional hearing. The hearing was convened to question Zuckerberg and other tech executives over the impact of their platforms on young users. The CEO expressed his condolences to the parents in the crowd who lost their children to online exploitation.

Throughout the hearing, lawmakers touted a bill that could strip Meta and other platforms of legal immunity for content posted on them, a move that would make Meta and other platforms illegal in 41 states over its impact on young users. It was enacted several months after a major lawsuit was filed by the attorney general. New Mexico’s attorney general also accused the company of failing to prevent child sexual exploitation and human trafficking.

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As a result of regulatory concerns, Meta has sought to diversify its core business, which has so far relied on advertising, which collects vast amounts of user data. Reality Labs, the division responsible for developing virtual reality products, faced a loss of $4.65 billion in the fourth quarter, up from $4.28 billion in the same period last year, bringing its total loss for 2023 to $16.1 billion. It reached $20 million. Meta said in a press release that it expects operating losses to “increase significantly year-over-year” as Reality Labs continues to expand its ecosystem.

In addition to regulatory concerns, Meta sees its platform’s user base tightening as young users in particular migrate to new platforms such as TikTok. The company said its platform is experiencing faster growth outside the United States. Insider information Principal Analyst Jasmine Enberg.

“On the usage side, Facebook continued to see a squeeze in user growth, but as expected, most of the new users came from outside of North America,” she said. “In the U.S., popularity among teenagers has become a liability in the eyes of lawmakers, which could hinder Facebook and Instagram’s efforts to grow in the country.”

Source: www.theguardian.com

Investors are once again embracing dog-themed meme coins

Welcome to Chain Reactions.

Get a roundup of TechCrunch’s biggest and most important crypto articles delivered to your inbox every Thursday at 12pm PT. Subscribe here. Editor’s note: There will be no newsletter published on 12/28. I hope everyone had a fun holiday and we can talk in the new year.

Every time a dog-themed memecoin like Dogecoin (DOGE) or Shiba Inu (SHIB) goes mainstream, another memecoin seems to be lurking in the shadows, waiting to pounce on its own hype train .

The value of the latest meme coin Bonk (BONK), a Shiba Inu-themed Solana token, has risen more than 400% this month, according to CoinMarketCap. data. Last week, hype for the token and the Solana Saga mobile phone skyrocketed after owners of the phone learned they could claim 30 million BONK tokens, worth approximately $560 at the time of issuance.

Sagaphone sold out 20,000 units in the US soon after, and Bonk’s price hit an all-time high six days ago. Solana (SOL), the Layer 1 blockchain-connected cryptocurrency that Saga and Bonk are focusing on, also rose more than 21% this week.

Since then, the hype around Bonk has dissipated, but other Solana-based meme coins like Dogwifat (WIF) have also benefited greatly from this interest.

literal token Image of a Shiba Inu wearing a knit cap, At the time of writing, Dogwifat has surged 42.46% in the past 24 hours and 864% in the past 7 days. According to CoinGecko, the token’s market capitalization is currently around $218 million. data. By comparison, Bonk’s market capitalization is more than five times that at $1.14 billion.

Of course, these aren’t the first meme-driven dog tokens, and I doubt they’ll be the last. Still, these market movements indicate that retail interest and appetite is returning to cryptocurrencies after a long bear market.

what is happening in web3

  1. Worldcoin no longer offers Orb certification in India, Brazil, and France
  2. Why asset tokenization could be the main driver for the growth of cryptocurrencies (TC+)
  3. Cryptocurrency valuations “back to reality” in 2023, but venture capitalists expect them to rise again in 2024 (TC+)
  4. AR platform Really launches ‘Fandime’ NFT to reward users with exclusive movie-related content
  5. EthSign brings DocuSign-like functionality to Line, Telegram with a Web3 twist
  6. WazirX trading volume falls off a cliff amid India’s crypto surveillance
  7. Why 30 Web3 founders are optimistic about 2024 (TC+)
  8. Robinhood is delving deeper into cryptocurrencies (TC+)

latest pod


this week's episode, Jacqueline We interviewed Staci Warden, CEO of the Algorand Foundation, the organization behind the layer 1 blockchain Algorand.

Previously, Warden worked at the Milken Institute, where he oversaw initiatives related to capital markets development, fintech financial inclusion, cryptocurrency, and blockchain.

Prior to that, he worked at JPMorgan, where he led public sector coverage as executive director. She also worked at Nasdaq and the U.S. Treasury. Worden serves on the advisory boards of the United Nations Capital Development Fund, the European Parliament's Science and Technology Options Assessment, and the American Financial Technology Association.

As for Algorand, the Singapore-based blockchain aims to be fast, secure, decentralized, and the “greenest” carbon-negative network. At the time of recording, there were approximately 615,000 active addresses.

We discussed the Algorand ecosystem, decentralization, and real-world use cases being built during a bear market.

We also discussed:

  • Asset tokenization
  • The foundation behind blockchain
  • Challenges in expanding business in the United States
  • Algorand’s plans for 2024

apply Chain reaction upon apple podcast, spotify Or catch up on the latest episodes using your favorite pod platform. If you like what you hear, please leave a review.

follow the money

  1. Financial Web 3 Data startup Tres raises $11 million in Series A round
  2. Gaming giant Nexon has invested $100 million in its Web3 venture, MapleStory Universe
  3. web3mine, an innovation lab focused on building Web3 tools, raises $6 million in seed round
  4. Banking-as-a-Service platform provider Fiat Republic raises $7 million in seed expansion
  5. Fyde Treasury raises $3.2 million seed round to help manage and grow on-chain crypto asset holdings

This list was compiled using information from Messari and TechCrunch's own reporting.

what else are you writing?

Ready to step outside the world of Web3? Here are some TechCrunch articles that caught our attention this week.

  1. Electric scooter company Bird files for bankruptcy
  2. Secondary investors say some valuations remain too high (TC+)
  3. Tesla asks for pause in federal racial discrimination lawsuit while finalizing other lawsuits
  4. 8 predictions for AI in 2024
  5. Small, affordable EVs lost in 2023

Follow us on Twitter @Jacqmelinek Get the latest cryptocurrency news, memes, and more.

Source: techcrunch.com

Valley Investors Achieve Unusual Goal in Battle Against Methane: Cow Burps

What do iconic Valley investors Zachary Bogue and Chris Sacca have in common? They’re both trying to stop cows from burping methane. No, really. And Soccer Investments has just raised $20 million to do just that. What gives?

With the conclusion of COP28, the global conference on the climate crisis, methane is on the ClimateTech agenda for investors and startups.

Emissions from livestock are the main source of agricultural methane, accounting for about one-third of all methane. emissions, and most of them aren’t from the parts of the cow you’d expect. In fact, it is from cow burp.

When cows process their feed, they literally exhale methane gas as part of their rumination process, allowing them to digest grass and hay that other animals, including us, cannot.

And it’s these emissions that agritech and biotech companies are now starting to target. There is a lot of pressure to do so. In fact, six major companies in the dairy industry recently pledged The company plans to start disclosing its methane emissions, and other companies are expected to join the plan. And one of the bigger topics at his recent COP meeting was a promise to reduce methane emissions. is growing rapidly.

Methane gas is by far the worst of all greenhouse gases, and like methane it is much worse than CO2. trap more heat The amount per molecule in the atmosphere is greater than carbon dioxide.

This gas stays in the atmosphere for about 12 years, whereas carbon dioxide lasts for hundreds of years, but over 20 years it is about 80 times more heating than carbon dioxide, and over 100 years it is 27 times more heating. according to to the Expert Panel on Livestock Methane in 2023.

Its reduction is therefore considered key to fighting the climate crisis. In fact, there is even a satellite-based “Methane Alert and Response System” (MARS). announced by the United Nations last year.

And a major UN report says “urgent measures” are needed to reduce methane to keep global warming within limits. manageable limit.

British companies now think they can tackle this problem.

British biotech startup Mootral Raised $20 million in Series B funding round backed by Menlo Park-based climate investors king philanthropiesalongside existing investors Lowercarbon Capital (a climate VC started by Chris Sacca), Earthshot Ventures, Kindred Ventures, Third Derivative, Climactic, and Climate Capital.

In total, Mootral raised $48.9 million. This number corresponds to the $11.2 million seed round. Series A for $12.8 million (led by King Philanthropies, which invested $10 million). This Series B is worth $20 million. Family office investment by Thomas Hafner and Karin Boimer is $24.9 million.

Mootral said in a statement that it aims to scale up to feeding 300 million cows with its feed additives by 2033, with the potential to achieve up to 50 percent methane reductions by 2025. This is quite a claim.

“We aim to immediately and permanently reduce methane emissions, and this is happening on farms today,” Mootral founder and CEO Thomas Hafner said by phone. Ta.

“The next generation of products will need to be on the milligram scale. Our next generation will be even better. We aim to reduce it by up to 90%.”

Mootral also has a scheme called ‘CowCredits’ which allows farmers to access the carbon credit market when reducing their herd’s methane emissions. ClimatePartner, a company that funds climate change projects through carbon credits, has signed on to include his Mootral in its portfolio of options for Crent.

The company says its Enterix product (manufactured in Wales) has been tested on farms in the UK, and the results have been published in academic journals, including the Journal. Open Journal of Animal Science, Frontiers of microbiology, animal science journaland translational animal science.

So how does it work? Dairy cows produce about 500 liters of methane every day. 3.7 tons of CO2 equivalent per year. Mootral says its current ruminant supplement can reduce methane emissions from dairy cows by up to 38 percent on commercial farms.

One of its competitors is CH4 Global It raised $29 million in its latest funding round. CH4 Global — backed by the aforementioned Zachary Bogue of DCVC — seaweed It is added to cattle feed to reduce methane emissions.

CH4 Global CEO Steve Mellor said in an email that the company is using “aquaculture” to address the problem. Global agricultural company to supply 9.5 million head of cattle is announced. Combining these two will result in approximately 80 million tons of CO2-e reductions. ”

He claims that CH4 Global’s line of feed additives (called Methane Tamer) contains Asparagopsis, which the company claims can reduce methane emissions from cows by as much as 90%. did.

The other player in that space is DSM, a Dutch multinational companyWhich recently It said it would monitor the environmental impact of foods containing animal protein.

In any case, it is clear that the climate tech sector is intersecting with agricultural technology in unexpected ways in the fight against the climate crisis.

Source: techcrunch.com

Early-stage investors respond to increasing challenges in securing Series A funding

Lightspeed Venture Partners officially moves forward with scaling efforts as other companies make similar moves

hurdle Series A funding has increased significantly compared to a year ago, and investors in seed-stage companies are having to react.

If they want their startup to survive, they don’t have many options. When the market suddenly changed in the spring of 2022, late-stage companies were the first to feel the pain. But that downward financial pressure has also recently affected newer companies, resulting in lower valuations in subsequent rounds, up from 1.6x in the second quarter to 2013, according to Pitchbook data. This is the lowest value since the third quarter, making selection difficult. Series A investors with plenty of options.

There are countless ways VCs can get creative on this front. European venture firm Breega touts a “scaling team” to back many of its seed investments. Pear VC, a Bay Area-based seed-stage venture firm, continues to roll out new programs to support and educate the early teams it supports.

Even larger, more agnostic companies are doing more to show they’re responsive to today’s market. For example, in October, investment firm Greylock launched Edge, a three-month company-building program “aimed at taking selected pre-idea, pre-seed, and seed founders from launch to product-market fit.” It started.

VC powerhouse Lightspeed Venture Partners is also stepping up its efforts. The company has long written early (and in some cases first) checks to startups, including the messaging app Snapchat. application performance management company AppDynamics (acquired by Cisco just before his IPO); and publicly traded cloud computing company Nutanix (current market cap: $11.2 billion).

The company says it has long focused on polishing these rough diamonds. Still, given the rising standards for Series A investors overall, Lightspeed told TechCrunch that some of the mentorship the company has provided to portfolio companies for years will be extended to company-building for founders. He said that he decided to make it official through the program. launch.

The idea, led by partner Luke Betheda, is not to attract more founders to Lightspeed, but to pave the way for already-funded startups to advance to Series A rounds. It is said that Betheda explains that almost everyone faces the same questions and obstacles. “They need to know: How do I get a business up and running? How do I hire and build a core team? Build product strategy through customer interviews and build partnerships. How can we design and drive revenue?”

Going forward, Lightspeed hopes to answer these questions more systematically through expert-led workshops, seed “playbooks,” and other toolkits Lightspeed offers through new programs.

Certainly, any help, no matter how small, is greatly appreciated at this time.

While many startups simply disband, at least 3,200 According to data compiled by Pitchbook for the New York Times, venture-backed U.S. companies are expected to go out of business in 2023, but companies that focus on year-over-year growth and annual recurring revenue are realistic. Some companies think they won’t go out of business any time soon.

At this time, it also includes a Series A stage.

“In 2020, 2021 and towards the end of 2022, we went through a period of tremendous market excitement, where there was a sense that gravity was non-existent,” Benchmark VC Sarah Tavel said at TC told. At an event earlier this month, she spoke about the changing landscape of Series A funding.

“Now we’re back to the point where everyone realizes that the job of building a company is really hard. You have to have great direction for your customers. You have to have incredible direction to the fundamentals of the business you are in.”

Mr Tavel said: “It’s not just the cosmetic metrics, the top-line numbers, that get a lot of people confused. [succeed] It is what generates profits and cash flow. ”

Source: techcrunch.com

Getaround’s Third Quarter Results Encourage Investors, but the Company Still Faces Challenges

peer-to-peer car sharing company Moving filed its first earnings report since going public a year ago Via SPAC combination. The company’s third-quarter earnings report details that while revenue is growing rapidly, it still doesn’t generate enough sales to cover expenses.

Getaround reported gross bookings of $69 million in the third quarter, resulting in revenue of $23.8 million in the period, up from $16.7 million in the year-ago period. In the first nine months of 2023, Getaround’s revenue reached his $54 million.

But while Getaround’s reported 42% year-over-year revenue growth in the third quarter has been well-received by investors, who have sent the stock up 75% in after-hours trading at the time of writing, the company is not. Still out of the forest.

Getaround’s operating expenses in the third quarter were worth $42.9 million, compared to the equivalent of $128 million for the first three quarters of this year, both numbers significantly higher than its gross profit for both periods. Still, Getaround has made some progress on the profitability front. In the third quarter, the company had a net GAAP loss of $27.3 million, an improvement of 16% from the third quarter of 2022 report. Using a more generous profit calculation, Get Around remained unprofitable in the latest quarter, with his adjusted EBITDA reported at -$11.3 million. Over the three-month period, it improved by 43% year-over-year.

Getaround is targeting gross bookings in the range of $200 million to $205 million for the full year of 2023. The company did not disclose revenue targets for this year, but third-quarter revenue reflects an annual run rate of more than $95 million. Getaround expects its 2023 adjusted EBITDA loss to be in the range of $68 million to $70 million.

Getaround ended the third quarter with $22.1 million in cash and cash equivalents. This number is a significant departure from the $64.3 million reported in cash and equivalents at the end of the third quarter of 2022. The company got some good news in the form of a $3 million infusion from Madrick Capital. Madrick Capital has an existing $15 million note with the company, which was expanded to provide a little more headroom for the getaround.

Getaround stock closed regular trading at about $0.17 on Thursday, ahead of the release of third-quarter data.

Rebuilding

Getaround is working to clean up its cost base, including reducing the company’s workforce. 10% of staff In February, the company announced that it would cut costs by $25 million to $30 million a year to achieve sustainability. The layoffs came a day after Getaround was declared a state of emergency. Delisting Notice from the New York Stock Exchange This is because the stock price was trading too low.

Now that the stock price has risen significantly following the earnings report, GetAround is still worth less than $1 per share, meaning it is still at risk of being delisted.Several SPAC combinations were executed reverse stock split This is probably why earnings per share have remained in the 100 yen range.

Getaround has also received other delisting notices for failing to timely file annual and quarterly reports. The company has not filed its 2022 annual report and just filed its third quarter earnings report. Getaround has not yet filed its first and second quarter results. The company says it will need more time to complete the audit and has now completed it.

Getaround CEO Sam Zaid told TechCrunch: Mr. Zaid would not comment on whether GetAround would seek a reverse stock split to boost its stock price.

car sharing companies too Acquires assets of startup HyreCar This will increase Getaround’s operating costs in the short term. Getaround hopes the scale provided by the acquisition will help accelerate its path to profitability.

This article has been updated with information from Getaround’s CEO.

Source: techcrunch.com

OpenAI investors and employees push back against Sam Altman’s firing, as he advocates for harmony within the company

Sam Altman on Monday threatened to walk away from his struggling AI startup, even as employees and major investors alike threatened to walk away from the struggling AI startup following the board’s shock move to oust him from the company. He insisted that he and OpenAI are “still one team” and have “one mission.”

Altman is now set to lead Microsoft’s new AI division, despite saying in an open letter that nearly all of OpenAI’s 770 employees will leave the company unless the entire board resigns. He insisted. Greg Brockman is back.

“We’re all going to collaborate in some way. We’re very excited,” Altman said.

“[Microsoft CEO Satya Nadella] My top priority is to ensure that OpenAI continues to thrive, and I am committed to providing full operational continuity to our partners and customers. The partnership between OpenAI and Microsoft makes this very possible. ” he added.

Mr. Altman’s remarks were met with a degree of skepticism, given the apparent chaos that followed one of the most unexpected and surprising coup attempts in Silicon Valley history.

The board announced late Friday that it “no longer has confidence in Altman’s ability to continue to lead OpenAI” because he “has not been consistently candid in his communications.”

His firing comes just a few of the announcements that despite having pumped more than $13 billion into OpenAI’s operations, he has blindly fired investment firms such as Thrive Capital and Khosla Ventures, as well as key partners including Microsoft. I found out a minute ago.

Investor Vinod Khosla slams OpenAI board of directors In a scorching column for “The Information.”its members wrote, had made a “serious miscalculation” and “set back the promise of artificial intelligence.”

Sam Altman said OpenAI will continue to operate as “one team.”
Reuters

“Every problem has a solution,” said Josh Kushner, founder of Thrive Capital. His company will be the lead buyer in the planned OpenAI stock sale, which values ​​the company at about $86 billion and is expected to close by the end of the year.

The battle over OpenAI’s future is getting stranger by the minute, with speculation mounting in the private market that a planned stock sale may fall through.

Ken Smythe of private capital advisor Next Round Capital told the Post that OpenAI’s funding plans are likely over, given the turmoil behind the scenes.

As of Monday, some major investors were “considering reducing the value of their holdings in OpenAI to zero.” reported by bloombergThis was reported by a person familiar with the matter. The newspaper said the possible move “appears to be aimed at putting pressure on the board to resign and encourage Mr. Altman to return.”

Satya Nadella
Reuters

Altman’s departure is a “material change in circumstances” and puts Thrive’s participation in the stock sale in doubt, although a sale could occur if Altman is reappointed as OpenAI’s CEO. Gender is still there. Sources told the Financial Times.

Thrive did not immediately respond to The Post’s request for comment.

Despite Altman’s public statements indicating he has stepped down, Altman himself reportedly has not yet closed the door on returning to his previous role as OpenAI CEO – people familiar with the matter said. The Verge He said he and Brockman are still open to returning, provided all remaining board members agree to resign.

Officials told the media that Altman’s comments about “work”[ing] “Together in some way” was “intended to indicate that the fight continues”.

Meanwhile, Microsoft has emerged as the big winner, having secured Altman’s services, and likely most of OpenAI’s employees, at a fraction of the valuation it would have been valued at last week.

Altman himself reportedly hasn’t closed the door on returning to his previous role as CEO of OpenAI just yet, with sources telling The Verge that he and the aforementioned Greg Brockman are still open to returning. Told.
Getty Images for SXSW

“Microsoft just pulled off one of the biggest coups in recent history, acquiring not only OpenAI’s technology but its employees within 48 hours,” Smythe said.

Nadella said Altman and Brockman will “join Microsoft to lead a new advanced AI research team.”

“We look forward to moving quickly to provide them with the resources they need to succeed,” Nadella said. He added that Microsoft remains “committed to our partnership with OpenAI.” [has] We are confident in our product roadmap. ”

In a scathing open letter, OpenAI staffers accused the board of lacking “competence, judgment, and consideration for our company’s mission and our people,” and said, “If they decide to… has ensured that all OpenAI employees will have a position in this new subsidiary.” stop.

OpenAI’s board of directors has named Emmett Shea, co-founder of the popular video game streaming platform Twitch, as interim CEO.
Reuters

The workers are demanding that OpenAI appoint two new lead independent directors, including former Twitter board chairman Brett Taylor and former U.S. congressman Will Hurd, who resigned from OpenAI’s board earlier this year. (Republican, Texas) emerged as a candidate.

At this time, the OpenAI board has named Emmett Shear, co-founder of the popular video game streaming platform Twitch, as interim CEO.

Mr. Shear is already scrambling to reassure employees and investors. In a lengthy statement posted to Company X, Mr. Shear pledged to reform the company’s management and conduct an independent investigation into the circumstances that led to Mr. Altman’s unexpected departure.

Source: nypost.com

Start-up founders allege that investors undermined their company with false user accusations in real life

IRL founders Abraham Shafi and Genrik Khachatryan are suing investors for intentionally sabotaging the company.

At its peak, IRL was poised to become an alternative way to host events for Gen Z, who were using Facebook less and less.

CEO Shafi said: Paused It was ordered by IRL in April to investigate allegations of misconduct. In June, IRL’s board of directors discovered after an investigation that 95% of the company’s 20 million users were fake. The founders now claim investors accounted for the 95% figure “as an excuse to shut down the company and return capital to shareholders.”

The lawsuit specifically names Goodwater Capital’s Chihua Qian, SoftBank’s Selina Dale, and Floodgate’s Mike Maples. From these investors his social calendar app raised more than $200 million and the valuation brought him $1.17 billion. Notably, SoftBank led IRL’s $170 million Series C round in 2021. Mr. Shafi and Mr. Khachatryan accused the investors of wanting to shut down the company because they were “trying to finance a large portion of the company’s $40 million in cash reserves.”

Although IRL is defunct, the remaining board members deny the founders’ claims.

“Immediately after the Shafi outage, IRL experienced a significant drop in the number of daily active users virtually overnight. This was not due to an outage,” IRL and its board said in a statement, and an IRL spokesperson said: Elliott Sloan shared with TechCrunch. The same report that found 95% of users are fake also cited “the existence of private groups with millions of duplicate names, irregular signatures from Hotmail, Yahoo email addresses, and burner email addresses. The statement said they also discovered “suspicious user behavior such as Said. Forensic reports show that his IP address from proxy-his servers was used extensively, with individual accounts cycling through his IP address and device type, which could be linked to user behavior. indicates that it is invalid.

“Based on this, and evidence of Shafi’s misappropriation of company funds and repeated obstruction of investigations, the board, after several months of consideration, has concluded that the company’s future prospects are unsustainable.” The statement concludes.

As of December of last year, the SEC. ongoing investigation IRL may have misled investors and violated securities laws.

IRL is just one once-hot start-up that has come under fire for potentially tampered metrics. Investors say Bolt and co-founder Ryan Breslow of the giant one-click checkout company misrepresented the company’s financials as it sought to raise $355 million in a Series E round. raised concerns and faced SEC investigation. But 15 months later, the SEC said the company likely not to be prosecuted. And earlier this year, the SEC charged student financial aid startup Frank with defrauding JPMorgan, which acquired the company for $175 million in 2021. JPMorgan has filed a lawsuit accusing Frank’s founder Charlie Jarvis of defrauding millions of customers to get her bank to buy her. company.

IRL lawsuit by tech crunch On Scribd

Source: techcrunch.com