Middle East AI dream depends on luring brainpower 22 Mar 2024 An abundance of cheap energy to power data centres gives artificial intelligence startups reason to consider the Gulf. But to become a force in AI, Saudi Arabia and the UAE will have to design their own advanced chips. Attracting talent to the region will require more than money.
AI makes venture capital Big Tech’s country cousin 13 Mar 2024 Early-stage investors have long competed to back the hottest startups. Now artificial intelligence startups seeking capital and computing power are going directly to deep-pocketed giants like Microsoft and Amazon, leaving venture capital firms scrabbling for crumbs in the boom.
VCs don shades even as tech storm clouds gather 29 Feb 2024 Even as OpenAI faces a probe, entrepreneurs and their backers meeting in California have high hopes for the industry. It’s not clear why. Last year’s funding and dealmaking rout leaves founders short on cash, and attempts by big tech firms to fill the void may make matters worse.
Klarna IPO now makes less sense than one later 28 Feb 2024 Decent growth and lower losses mean the Swedish buy now, pay later group can justify a $20 bln valuation. Given that’s three times the level of its last cash injection, there’s an argument for a speedy listing. Still, Klarna’s messy governance suggests a 2025 IPO is more logical.
India’s startups will no longer price perfection 22 Feb 2024 Fintech firm Paytm and online educator Byju’s were two of the country's hottest tech companies but their valuations have been crushed and they are flailing around. Bad governance is to blame. The upshot? Investors will receive the coming wave of fundraisings and IPOs cautiously.
EU’s AI ambitions may fail on two fronts 8 Feb 2024 Brussels wants to set the global standard for artificial intelligence rules while helping Europe’s most promising startups to thrive. But its AI Act may be too fussy for others to copy, even as risks remain. And it will do little to help local champions take on US tech giants.
Capital Calls: Maersk, SoftBank, Adyen 8 Feb 2024 Concise views on global finance: The Danish shipping giant’s shares fell 14% after it missed expectations and warned of years of earnings pain; the Japanese investment firm posted its first net profit in five quarters; the Dutch payment company is slowly recovering.
EU tech rules will create clicks, not competition 27 Dec 2023 Brussels wants to force Google, Meta and Apple to open up app stores, messaging networks and search engines. The US giants will have to let startups compete and offer consumers more opt-outs. It’s likely to result in lawsuits and hassle for users rather than rivals for Big Tech.
Artificial intelligence will embark on a data dash 22 Dec 2023 Text and photos produced by professionals are key to training and improving AI models. But accessing this information is getting harder and pricier. AI firms will have little choice but to pay for data, pushing up already-high costs – and delivering a windfall to publishers.
OpenAI calls time on alt-governance experiment 22 Nov 2023 Sam Altman’s return as CEO cements the failure of the ChatGPT owner’s attempt at shareholder-second capitalism. The board’s mandate to protect humanity was no match for the will of its biggest backer Microsoft. OpenAI is now more like a regular company – for better or worse.
OpenAI value ignores CEO’s fundraising odyssey 27 Sep 2023 The ChatGPT maker may ask investors to buy stock off employees at a $80-90 bln price tag. Based on Nvidia’s valuation, OpenAI could justify that mark by doubling revenue each year to 2026. A big risk is that boss Sam Altman keeps raising money, diluting existing shareholders.
Capital Calls: Shein/Forever 21 24 Aug 2023 Concise views on global finance: The Chinese retailer is partnering with Sparc, the operator behind Forever 21. That helps validate Shein before a public listing without the messiness of a merger. Forever 21 gets a new omnichannel and potentially a way to an IPO.
Capital Calls: Cathay, Telecoms kit makers, Byju’s 14 Jul 2023 Concise views on global finance: The Hong Kong carrier expects to turn a profit; a push into 5G has caught European telecoms gear makers like Nokia and Ericsson short; India’s troubled ed-tech giant appoints a top former banker to a newly formed advisory council.
Seed funding valuations sprout a bubble 13 Jul 2023 New data shows VCs are being less generous with the earliest-stage startups but paying the highest prices in a decade. A slump in late-stage investing due to some mishaps and a less welcoming IPO market is boosting competition down the chain. That means the tech bubble has moved.
Venture capital has female entrepreneur black spot 11 Jul 2023 Companies founded by women get at best 3% of venture money each year. That’s a sign investors are not allocating capital wisely and missing lucrative deals, Loyal VC founding partner Kamal Hassan tells The Exchange podcast. It’s time to change the venture playbook.
Watchdog with teeth can help EU hunt unicorns 11 Jul 2023 Europe’s companies need capital to grow. Yet the bloc’s share of global capital markets is just 9%. A patchwork of national rules stymies Brussels’ efforts to foster cross-border investment. Creating home-grown corporate stars requires a securities regulator with real powers.
UK growth plan aims pea-shooter at monster problem 11 Jul 2023 Finance minister Jeremy Hunt wants Britain’s $2.5 trln pension system to invest more in private equity and startups. His scheme avoids the risky idea of forcing managers into buying British assets. But it’s too fuzzy and timorous to solve the country’s dismal lack of investment.
Big Tech backlash swells the AI gold rush 26 Jun 2023 Cloud provider Databricks is buying a machine learning startup for $1.3 bln, almost six times its valuation earlier this year. Models backed by Microsoft and Google dominate artificial intelligence. But a bet that companies want to control their data is pumping up smaller rivals.
Brain implant needed to justify a $5 bln Neuralink 5 Jun 2023 Elon Musk’s startup promises brain-computer interfaces that do everything from curing disease to storing memories. The $5 bln valuation presupposes $3 bln of revenue in 10 years. That’s an optimistic timetable, even assuming Musk’s technology is successful.
Capital Calls: OpenAI’s backers 1 May 2023 Concise views on global finance: The ChatGPT developer has secured $300 mln from venture giants including Andreessen Horowitz, according to TechCrunch. As it rounds up scarce funding from tech’s biggest names, competitors will find it harder to break through.