Stableton Navigator | OpenAI Challenges Microsoft, Groq Takes on Nvidia, Big Tech Invests in AI

This week in the Navigator, we dive into our portfolio companies updates: OpenAI unveils voice mode for ChatGPT, SpaceX is securing major contracts, Ripple is pushing blockchain boundaries, and Airtable is revolutionizing onboarding with AI. Get started with the latest in private markets: from the brewing rivalry between Microsoft and OpenAI, Groq’s new funding to Big Tech's billion-dollar AI investments.

THIS WEEK’S BREAKING NEWS

From partners to rivals: Microsoft vs. OpenAI

Microsoft and OpenAI's relationship has gotten complicated—big time. Despite Microsoft's $13 billion investment and serving as OpenAI's cloud provider, they're now competing head-to-head in AI and search. OpenAI launched SearchGPT, while Microsoft has its Copilot chatbot. Even though they're still partners, it's clear they're stepping on each other's toes. The CEO drama at OpenAI and new moves by Microsoft only make things more intense. It's a tech showdown, no doubt about it. (1)

MARKET UPDATE

Groq's $640M Bet: Outpacing Nvidia in AI chips

Groq has secured $640 million in funding to challenge Nvidia's dominance in the high-end AI chip market. The company's innovative Language Processing Units (LPUs) offer faster and more efficient AI inference capabilities, particularly for large language models, by using a unique architecture that reduces energy consumption and improves performance. Groq aims to ship 1.5 million chips by the end of 2025, positioning itself as a cost-effective alternative for startups and AI developers. (2)

Big Tech’s $100 billion AI gamble

In the first half of 2024, Big Tech companies increased capital spending by over 50%, reaching a total of $106 billion. Alphabet's spending surged 90% to $25 billion, Microsoft's by 78% to $33 billion, and Amazon's by 27% to $32.5 billion. Meta's Mark Zuckerberg projected their capital expenditure could reach $40 billion this year. Despite skepticism from investors, these companies aim to build extensive data center infrastructure, crucial for advancing AI capabilities. Analysts anticipate that total investment in AI infrastructure could potentially hit $1 trillion within five years. (3)

PORTFOLIO & CO-INVESTMENT UPDATE

Discover opportunities to connect with leading global pre-IPO unicorns

Through Stableton’s portfolio products and co-investment program, you can?explore?some of the most promising unicorns before they go public.

Contact us today to learn more about accessing pre-IPO deals and portfolios.

PORTFOLIO NEWS

Introducing voice mode for ChatGPT

OpenAI is introducing an advanced voice mode for ChatGPT, initially available to a limited number of ChatGPT Plus subscribers. The feature, showcased in May, faced delays due to safety concerns and potential issues with copyrighted content. OpenAI tested the model's safety with over 100 external experts and added filters to prevent impersonation and unauthorized content generation. The new voice mode, featuring four preset voices, will be broadly available by fall. (4)

Discord streams on Xbox

Microsoft is enhancing the Xbox experience by integrating Discord streams directly into the console's dashboard. Xbox users can now watch friends' gameplay streams from PC, mobile, or Xbox without needing a separate app. This update, available first to Xbox Insiders, includes features like full-screen viewing and volume control. Additionally, the integration allows for direct calls to friends and shows detailed info about Discord connections, such as mutual servers and Xbox gamertags. Unlike the Xbox, the PS5 still doesn't support watching Discord streams. (5)

Airtable acquires Dopt: AI-powered onboarding excellence

Airtable has acquired the onboarding startup Dopt to strengthen its AI capabilities and enhance user experience. Dopt will wind down operations and integrate its team into Airtable’s AI group. This move aims to streamline processes and improve AI-driven features within Airtable, including the recent launch of the Airtable Cobuilder, which allows users to create apps by simply describing them. The acquisition is part of Airtable's broader strategy to remain agile and innovative in a rapidly evolving tech landscape. (6)

Ripple's $10M bet?

Ripple has invested $10 million in tokenized US Treasury bills (T-bills) through OpenEden, launching these tokenized assets on the XRP Ledger. This initiative not only marks a significant step in integrating traditional financial instruments with blockchain technology but also aligns with the growing trend of tokenizing real-world assets (RWAs). The move aims to attract institutional investors and broaden the adoption of decentralized finance (DeFi). As of now, OpenEden's platform has locked in over $75 million in T-bill tokens, underscoring the strong demand for these digital assets in a rising interest rate environment. (7)

More missions, more money: ULA and SpaceX's $1.8B boost!

The U.S. Space Force has increased SpaceX's contract under the National Security Space Launch (NSSL) Phase 2 program by $661 million, bringing the total to $4 billion. This boost reflects the addition of new missions, raising the total from 34 to 49. SpaceX, which now holds 46% of these missions, benefits from the rising demand for space launch services to support national security payloads. This expansion underscores SpaceX's growing role in providing reliable and critical space access for the U.S. government. (8)

CHART OF THE WEEK

This chart highlights the diverse and evolving landscape of VC investments across Europe and Israel, signaling abundant opportunities for strategic investors. The steady performance of regions like the UK & Ireland and the rise of the DACH region underscore the competitive edge in various markets. Investing in these regions can ensure a robust, well-rounded portfolio performance.

THE UNTOLD UNICORN STORY

Celonis: Capturing value in processes

Founded in 2011, Celonis is a software company specializing in process mining and execution management, headquartered in Munich, Germany. Its platform uses data from IT systems to visualize and analyze business processes, helping organizations identify inefficiencies and optimize their operations. Celonis has grown rapidly, serving clients across various industries, including manufacturing, finance, and healthcare. (10)

Fun Fact: Celonis started as a student project at the Technical University of Munich. The founders developed the idea for a university competition focused on optimizing business processes. Their project won first place, but the real magic happened afterward. Motivated by their win, the trio decided to turn their classroom concept into a real business. They set up their first office in a small apartment and used furniture from a second-hand store to keep costs low. This humble beginning from a student project to a global tech leader illustrates the potential of university-driven innovation and determination.

QUESTION OF THE WEEK

Is the Stableton Unicorn Top 20 Fund open to international investors, and what is the minimum ticket size requirement?

Yes, investors from multiple jurisdictions can invest in the Stableton Unicorn Top 20 Fund unless specified otherwise in the fund documentation. The minimum investment is $100k (€100k equivalent) for Class B and Class C shares, and $1m for the Institutional Share Class. Contact us for more specific details .

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• AltsUK - London (October 26)

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WHAT'S NEXT

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Sources

1 - CNBC , 2 - TechCrunch , 3 - Financial Times , 4 - The Verge , 5 - The Verge , 6 - TechCrunch , 7 - CryptoSlate , 8 - Space News , 9 - Celonis , 10 - TUM Community

*Available only to qualified investors under Swiss law. This opportunity is available solely to investors meeting the criteria of qualified investors as defined by Swiss financial regulations. Additional details will be provided upon verification of this status.