July 26, 2024

E138: Tesla to invest $5B in xAI?, OpenAI launches SearchGPT, Wiz walks away from $23B Google deal, Klarna replacing 70 employees per month with AI, Revolut's $45B valuation surge, Cohere's $5.5B valuation boost, Goldman’s pre-IPO investment, Neuralink te

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Weekly pre-IPO reports…
- Valuations, revenue multiples, performance = www.agdillon.com/reports
- Market update pdf = www.agdillon.com/update
- Index fact sheet = www.agdillon.com/index

00:07 | Wiz walks away from $23B Google deal
- Cloud security company
- Opted for IPO over $23B Google deal
- Influenced by antitrust concerns
- Aims for $1B annual revenue; reached $350M last year
- 40% of Fortune 100 clients
- Valuation $13.1B (+9.1% vs May 2024)
- 37x revenue multiple; Google deal 65x
- Potential $20B IPO at 20x revenue

01:34 | Revolut's $45B valuation surge
- UK online bank
- Nearing $500M employee share sale
- Valuation up to $45B (previously $40B)
- Investors: Coatue Management, Tiger Global
- $429M net income in 2023, forecast $976M in 2024
- Revenue: $2.2B in 2023, projected $3.7B in 2024
- 20M customers (March 2024)
- Aiming for $9.3B revenue by 2026
- 17x revenue multiple

02:32 | Revolut secures UK banking license
- Secured UK banking license
- Can offer credit products, take deposits
- Serves 45M global customers, 9M in UK
- Previously relied on EU banking license
- "Mobilisation" phase, capped at £50K deposits for up to 12 months

03:22 | OpenAI launches SearchGPT
- AI large language model company
- Launching SearchGPT search engine
- Summarizes info, cites sources like WSJ
- Follow-up questions, linked sources
- Sidebar for more results
- Data: reputable news sources; e.g. News Corp, Axel Springer
- Valuation $103B (+20% vs Apr 2024)

04:04 | Cohere's $5.5B valuation boost
- AI large language model company
- Valued at $5.5B after $500M Series D
- Led by PSP Investments, new backers include Cisco, Fujitsu
- Doubled from $2.7B in 2022
- Annual revenue: $13M (2023) to $35M (March 2024)
- Headcount to double from 250
- Models support 10 languages
- Valuation $5.7B

05:17 | Goldman’s pre-IPO investment
- Goldman leading $540M investment in NEA's continuation vehicle
- Includes stakes in 11 companies: 38% Databricks, 10% Plaid
- Provides liquidity to NEA's partners
- Investors: Industry Ventures, Pathway Capital, Goanna Capital
- Priced at 19% discount to NEA valuations
- Highlights venture capital innovation

07:23 | Neuralink tender?
- Brain computer interface company
- Preparing stock buyback for employees, investors
- Valuation up to $8B (from $3.5B)
- Secondary market trades reflect 117% premiums
- Employees compensated in shares; trade at $50 (up from $35 in January)
- Prefers controlled tender offers

08:10 | Tesla to invest $5B in xAI?
- AI large language model business by Elon Musk
- Polled users on Tesla investing $5B in xAI
- Raised $6B, valuation $24B post-money
- X rumored to have 25% ownership
- Valuation $26.1B (+8.6% vs May 2024)

08:54 | Klarna replacing 70 employees per month with AI
- Consumer lender and payments company
- AI enhances efficiency across operations
- AI-driven customer service cut backlog from 30 days to zero
- Saved $40M; reduced 700 outsourced personnel
- AI handles 80% of marketing copywriting
- Headcount down from 4500 to 3700
- Increased cost per employee; higher salaries, more equity
- Valuation $10.7B (+60% vs Jul 2022)

11:27 | Pre-IPO Stock Market Weekly Performance
- www.agdillon.com/reports for full pdf
- Pre-IPO +0.30% for week, +63.28% for last 1yr
- Up week: xAI +8.8%, Stripe +5.7%, Anthropic +3.7%, Rippling +3.3%, Ramp +2.8%
- Down week: Groq -7.6%, Chime -7.5%, CoreWeave -4.2%, OpenAI -2.8%, Canva -1.3%
- Top valuations: ByteDance $294b, SpaceX $210b, OpenAI $103b, Stripe $70b, Databricks $44b