Tag Archives: valuation

Will the AI boom push Nvidia to a $4 trillion valuation, despite investor doubts?

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During Nvidia’s annual meeting, Jensen Huang did not address the recent stock price decline. Despite briefly holding the title of the world’s most valuable company on 18 June, Nvidia experienced a significant drop in market capitalization, losing around $550 billion from its peak value as tech investors hesitated to take profits and raised concerns about the sustainability of rapid growth.

Speaking optimistically, Huang, the CEO, discussed the company’s rise in valuation from $2 trillion to $3 trillion in just 30 days this year and set sights on reaching $4 trillion. He emphasized the potential of the upcoming Blackwell chips, hinting at revolutionary advancements in AI that could automate a significant portion of heavy industry, talking about a future where robotic factories produce robot-like products with a new wave of AI.

Huang concluded by boldly stating, “We have reinvented Nvidia, the computer industry, and maybe the world.” These words set the groundwork for the company’s $4 trillion valuation and the hype surrounding AI. Despite the initial setback, Nvidia’s shares have been steadily climbing back up, surpassing $3 trillion this week, reaffirming its position as a top stock to invest in amidst the AI boom.

“We have reinvented Nvidia, the computer industry and maybe the world,” Jensen Huang said. Photo: Qian Yingying/AP

Analysts like Alvin Nguyen from Forrester are optimistic about Nvidia’s potential to reach $4 trillion, suggesting that only a significant genAI market collapse could hinder its progress. However, the competition with tech giants like Microsoft and Apple remains fierce, as they currently hold the top market positions in AI.

Nguyen speculates that the launch of OpenAI’s GPT-5 and other new AI models could further boost Nvidia’s stock price, potentially reaching the $4 trillion mark by the end of 2025. However, technological advancements and shifts in consumer demand for AI products may impact Nvidia’s journey to the $4 trillion milestone.

As the discussions around AI continue to evolve, private AI research institutions like OpenAI and Anthropic are making significant contributions to the generative AI landscape. Companies like Google, Microsoft, and Nvidia are investing heavily in AI technologies, each aiming to make a mark in the rapidly expanding industry.

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Nvidia’s stronghold in providing GPUs for AI research and applications has positioned it as a key player in the industry. The demand for high-performance chips to power AI models like GPT-4 and Claude 3.5 has been instrumental in Nvidia’s success, with companies investing in their technology infrastructure to leverage the benefits of AI.

Nvidia CEO Jensen Huang said the company is “automating $50 trillion of heavy industry.” Photo: Justin Sullivan/Getty Images

As Nvidia aims for the next milestone of $4 trillion, challenges lie ahead in maintaining market dominance and profitability amid increasing competition. With market dynamics evolving and technological advancements shaping the industry, Nvidia’s path to $4 trillion valuation may face obstacles in the ever-changing landscape of AI.

The economic landscape is shifting, and the role of AI in driving the Fourth Industrial Revolution presents both opportunities and challenges. For Nvidia and other AI companies, navigating these complexities will be crucial in realizing the full potential of AI while adapting to the changing market conditions.

Source: www.theguardian.com

Reddit is targeting a $6.5 billion valuation in New York IPO

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Reddit, a popular social media network, is aiming for a valuation of approximately $6.5 billion (£5 billion) as it prepares to list on the New York Stock Exchange. The company, as stated in its filings with the U.S. Securities and Exchange Commission, plans to sell 22 million shares priced between $31 and $34 each in its upcoming initial public offering, potentially raising up to $748 million.

Initially planning to go public in 2021, Reddit delayed its IPO due to economic conditions and weak tech stock performance. The IPO, set to take place later this month under the ticker symbol RDDT, will be the most significant social media offering since Pinterest in 2019.

Described as the “front page of the internet” by its founders, Reddit intends to involve users and moderators in the IPO. A portion of the shares will be reserved for sale to targeted Reddit users, board members, employees’ friends and family, with eligibility criteria for user participation outlined.

Reddit is a digital platform where users can join communities, share experiences, and engage in discussions on various topics. With 100,000 active communities and 1 billion posts as of December 2023, Reddit sees potential growth in advertising and data licensing opportunities.

The company also aims to provide users with the opportunity to become investors through the IPO, while raising capital and offering liquidity to employees. Reddit’s recent financial filings showed a 21% revenue increase but a $90.8 million loss in 2023.

In preparation for its IPO, Telegram founder Pavel Durov announced that the messaging platform is exploring the possibility of going public. With 900 million users and a $30 billion valuation, Telegram is nearing profitability and has no plans to sell.

Source: www.theguardian.com

Is Nvidia’s $1 trillion valuation sustainable, or is Apple poised to take the crown?

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EEveryone wants to be like Apple. The world’s largest publicly traded company, with a flagship product that prints money, a cultural footprint that has reached world-historical significance, and the Ford of the 21st century.

At a surface level, it’s clear which companies get hammered in this comparison. If you send out a well-crafted, smartly designed home appliance in a nice box, someone somewhere will compare you to the Cupertino giant.

Digging a little deeper allows for more meaningful comparisons. Apple isn’t just defined by its style, it’s also defined by its focus. A small number of computers, phones, and tablets in a small number of configurations account for most of the revenue.

That focus has allowed the company to develop a reputation for quality. Of course, it also contributed to its formidable media strategy, making every product launch an industry event in a way that few have been able to imitate before. This is what I was thinking nearly a decade ago when I referred to gaming giant Blizzard, creator of World of Warcraft and Diablo, as “his Apple of gaming.” (Now owned by Microsoft and plagued by allegations of misconduct, Blizzard’s star has since fallen.)

But there’s something else that makes Apple what it is today, and it’s difficult for startups to imitate. The Apple they see is just the latest evolution of a company that was an industry giant before the latest generation of founders were born. The Apple II, Mac, and iMac all shaped computing for 25 years before the iPod turned Apple into a consumer electronics company. And the iPod gave Apple another decade of growth and sophistication, until the iPhone came along and created the behemoth it is today.

Now let’s talk about Nvidia.

$1 trillion is not cool

…

Source: www.theguardian.com

ShareChat experiences significant decrease in valuation following new funding round

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ShareChat is in the final stages of discussions to secure about $50 million in new funding that would bring the startup’s valuation below $1.5 billion, according to two people familiar with the matter.

Existing backers including Temasek and Tencent are among the investors in advanced stages of talks to invest in the new round, the sources said, asking not to be identified as the matter is private. Stated. ShareChat has been in talks with several potential new investors this year, and one of the potential investors the startup has engaged says that ShareChat is expected to receive a high valuation compared to its current low revenue. Many investors are hesitant to take this opportunity because of the current situation.

The terms of the negotiations are still ongoing and could change slightly, according to people familiar with the matter, but ShareChat’s current valuation is less than $1.5 billion, which is the same as when ShareChat raised funding early last year. This is a significant drop from its valuation of $4.9 billion.

The round could be completed as early as the end of the year. ShareChat did not immediately respond to a request for comment Wednesday morning. Temasek declined to comment, citing its own policies.

The loss-making Bengaluru-headquartered startup, which operates a social network and counts X, Snap and Tiger Global among its backers, has raised more than $1.4 billion so far, according to venture intelligence platform Tracxn.

Amid the TikTok ban, ShareChat’s failed bet in India’s short video space forced it to raise capital and prompted a price cut. (TechCrunch exclusively reported earlier that in late 2020 and early 2021, X considered acquiring ShareChat in a $2 billion deal.)

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Sensor Tower estimates daily active users of Google’s Android platform in India (shared with TC by industry executives). In an official statement, ShareChat claims to have over 300 million monthly active users.

ShareChat, which launched short video app Moj in mid-2020, doubled its position in the category by acquiring MXTakaTak, a video app in the Times Internet portfolio, for more than $600 million. But industry analysts say YouTube and Instagram have filled TikTok’s void as creators migrate to these much larger platforms.

Eight-year-old ShareChat is scrambling to find ways to grow revenue and cut expenses after its two co-founders left earlier this year to start a new startup. It has tried a series of initiatives, including a fantasy sports app and a live voice chat service. However, sales were still lower at the end of the fiscal year ending in March. $65 million. The company plans to cut another 15% to 20% of its workforce in the coming weeks, another person said.

Many investors around the world are devaluing their holdings in startups, as the prolonged economic slowdown has also reduced the valuations of nearly all publicly traded technology companies. Prosus recently lowered Byju’s valuation to less than $3 billion from $22 billion in early 2022. Byju’s has raised more than $5 billion through equity and debt.

Source: techcrunch.com

Tamara, a BNPL platform and shopping giant in Saudi Arabia, achieves $1 billion valuation following $340 million Series C funding round

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Tamara, the buy-now-pay-later platform for consumers in Saudi Arabia and the Gulf Cooperation Council region, has recently completed a C round of funding that raised $340 million. This recent funding brings the company’s valuation to $1 billion, making it the first fintech unicorn startup in the region. SNB Capital and Sanabil Investments led the Series C round, alongside other backers such as Shorooq Partners, Pinnacle Capital, and Impulse. This round includes primary capital and some secondary equity transactions, marking one of the largest investments in fintech in the region. Tamara has raised a total of $500 million in equity funding, including secondaries, and over $400 million in debt funding.

Established in 2020, Tamara has quickly gained traction and currently boasts over 10 million users in Saudi Arabia, UAE, and Kuwait. The platform allows consumers to shop, pay in installments, and make bank transfers, and it has partnered with 30,000 merchants, including popular names like SHEIN, IKEA, Jarir, Noon, eXtra, and Farfetch.

The rise in popularity of buy-now-pay-later services in Saudi Arabia has seen significant growth, driven by the booming e-commerce market. According to a report from last year, the number of registered customers for BNPL services increased from 76,000 in 2020 to 3 million in 2021 and 10 million in 2022. With Saudi Arabia’s huge potential for digital payments, the market is expected to grow significantly in the next few years.

CEO Alsukhan emphasized the importance of building a customer-centric payment solution and the platform’s commitment to Shariah compliance. Tamara prides itself on offering a friendly and transparent service, focusing on avoiding unnecessary fees and helping customers make timely payments by offering risk management tools and options based on their financial capabilities.

Tamara’s long-term vision includes expanding its revenue sources and introducing new products and services beyond buy-now-pay-later. The platform plans to strengthen its integration into the shopping journey, introduce a buyer protection program, and enhance its card functionality for in-store transactions.

The recent funding not only represents a significant milestone for Tamara but also signals the region’s growing potential in the fintech industry. As the first homegrown unicorn in the Gulf, the company’s success reflects the supportive ecosystem, financial backing from local and international investors, and a strategic focus on customer satisfaction and compliance.

Source: techcrunch.com

Shield AI secures $200 million funding with $2.7 billion valuation to advance military autonomous flight technology expansion

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Shield AI The company has secured $200 million in fresh funding to expand its autonomous flight systems for the U.S. military and its allies.

Established in 2015, the startup currently holds a valuation of $2.7 billion. The latest funding round was led by US Innovation Technology Fund (USIT) with significant participation from Riot Ventures, a previous investor in Shield AI. Other contributors include existing investors Disruptive and Snowpoint, as well as new investor ARK Invest, an investment management company founded by Cathie Wood.

USIT, guided by billionaire Thomas Tull, served as the sole investor in Shield AI’s initial $60 million Series E funding. This substantial Series F round is a testament to the company’s successful track record of fundraising – the Series E raised a total of $225 million, and its Series D ranged between $210 million and $300 million.

It also highlights the capital-intensive nature of defense-focused startups, even for companies like Shield AI that offer more affordable systems compared to their traditional counterparts.

The startup specializes in developing hardware and software to transform drones and aircraft into autonomous systems capable of carrying out missions in conflict zones. The company’s flagship product is Hivemind, an AI pilot software that enables drones and aircraft to operate autonomously without relying on GPS assistance. Shield AI has also introduced a drone swarm feature called V-Bat Teams, which allows a single human operator to command at least four V-Bat drones (developed by Martin UAV, acquired by Shield AI in 2021).

“Our nation faces the challenging reality of having insufficient pilots, and rule-based autonomous solutions are insufficient for the existence of such swarms,” said Ryan Tseng, CEO and co-founder, when announcing V-Bat Teams earlier this month. “Shield AI changes this. For nearly nine years, Shield AI has been building the world’s most advanced AI pilots using a unified AI foundation that is applicable and deployable across all aircraft types, from quadcopters to F-16s. We’ve been steadfastly focused on that.”

The San Diego-based company is also working on integrating Hivemind into unmanned fighter jets and other aircraft. The Shield AI technology stack has garnered significant interest from the Department of Defense due to increasingly sophisticated counter-drone technologies that focus on disrupting drone communications and navigation.

“The battlefield is increasingly dominated by drone warfare, and adversaries are turning the battlefield into a hostile environment by disrupting communications and GPS,” stated Stephen Marcus, co-founder and general partner at Riot Ventures. “We are doing everything we can to address this. Modern Air Forces are operating blindly. Shield’s AI pilots are intelligent and adaptable to their environment, requiring no GPS or communications. Their AI is trainable and adaptable for diverse missions, and they have successfully flown teams of copters, V-BATs, and modern fighter jets. The most comparable technology we have seen thus far is what Tesla is doing with their self-driving stack.”

The new funding arrives amidst a surge in investor support for defense technology startups, driven in part by escalating geopolitical tensions and the U.S. lagging behind its adversaries. Engineers and the Pentagon are keenly aware of the risks at hand. In fact, some Shield AI executives have made noteworthy comparisons: Back in 2021, co-founder Ryan Tseng drew parallels between the Chinese military and Netflix, and the U.S. military and Blockbuster.

Source: techcrunch.com