Stableton Navigator | xAI’s $6B Funding Push, SpaceX's $250B Valuation, Databricks’ $55B Leap

This week's newsletter is packed with updates that reveal where innovation meets investment. From Elon Musk's ambitious plays in AI to groundbreaking moves in Europe's tech scene, the stories highlight key shifts shaping private markets.

THIS WEEK’S BREAKING NEWS

xAI raising up to $6 billion to purchase 100,000 Nvidia chips

xAI is raising $6 billion, valuing it at $50 billion, to purchase 100,000 Nvidia chips for a Memphis data center. Funding includes $5 billion from Middle Eastern sovereign funds and $1 billion from other investors. The chips will support Tesla’s Full Self-Driving tech. xAI, launched in 2023, competes with OpenAI, Google’s Bard, and Anthropic’s Claude, and previously released the chatbot Grok. (1)

MARKET UPDATE

Europe’s $160M push for SpaceX-level spacecraft

The Exploration Company raised $160 million, led by EQT Ventures, to fund its Nyx reusable orbital vehicle, designed as Europe’s alternative to SpaceX's Dragon capsule. The funding round included 83North and Red River West, showcasing significant backing. Nyx aims to achieve its first mission in 2026, enhancing Europe's autonomous space capabilities. (2)

Elon Musk targets Microsoft in expanded OpenAI lawsuit

Elon Musk has expanded his antitrust lawsuit against OpenAI to include Microsoft, accusing them of monopolistic practices in the generative AI market. The suit, filed in Oakland, California, claims Microsoft's investment conditions restricted competition. The lawsuit follows Musk's departure from OpenAI in 2018 after conflicts with Sam Altman. OpenAI called the claims "baseless," while Microsoft chose not to comment. (3)

Amazon challenges Temu and Shein with “Haul”

Amazon has introduced "Amazon Haul," a discount storefront offering products priced at $20 or less, aiming to compete with low-cost retailers like Temu and Shein. Currently in beta testing in the U.S., Haul is accessible via Amazon's mobile app or website. The platform features a variety of items, including clothing, accessories, and home improvement products. Shipping times range from one to two weeks, with a $3.99 fee for orders under $25. (4)

PORTFOLIO & CO-INVESTMENT UPDATE

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PORTFOLIO NEWS

Anthropic's AI model passes nuclear safety tests

Anthropic's AI model, Claude 3.5 Sonnet, has undergone rigorous safety evaluations by the UK's AI Safety Institute, ensuring it doesn't pose catastrophic risks, such as those related to nuclear information. The model is designed to prevent misuse, including the dissemination of sensitive data, reflecting Anthropic's commitment to responsible AI development. (5)

OpenAI's 'Operator' set to transform user productivity

OpenAI is preparing to launch "Operator," an AI agent designed to automate user tasks, with a research preview and developer tool expected by January 2025. This initiative positions OpenAI alongside competitors like Anthropic and Google, who are also developing similar AI capabilities. CEO Sam Altman has emphasized the significance of agentic systems, predicting them as the next major AI breakthrough. The industry faces pressure to monetize AI technologies, with hopes that autonomous agents will justify substantial investments and become revolutionary products akin to ChatGPT. (6)

OpenAI unveils U.S. AI strategy to rival China

OpenAI is set to present a comprehensive U.S. AI strategy, emphasizing the development of large-scale data centers and advocating for a national AI alliance to maintain a competitive edge over China. The plan includes constructing 5-gigawatt data centers, each capable of powering approximately 3 million homes, to support advanced AI models. This initiative aims to bolster job creation, GDP growth, and secure the U.S.'s leadership in AI technology. (7)

With 5M users, SpaceX’s Starlink embraces market competition

SpaceX President Gwynne Shotwell has expressed confidence in Starlink's market position, highlighting its rapid deployment and service quality as key differentiators. She emphasized that Starlink's extensive satellite constellation and early market entry provide a competitive edge over emerging rivals like Amazon's Project Kuiper. Shotwell also noted that Starlink's proven technology and growing customer base reinforce its leadership in the satellite internet sector. (8)

SpaceX plans $135/share tender offer

SpaceX is preparing a tender offer to sell existing shares at $135 each, valuing the company at over $250 billion. This valuation reflects a significant increase from earlier this year, when the company was valued at approximately $210 billion. The tender offer is expected to launch in December, allowing existing shareholders to sell their shares at this new valuation. (9)

Revolut's crypto platform reaches 30 new European countries

Revolut has expanded its crypto trading platform, Revolut X, to 30 additional European markets, offering access to over 200 cryptocurrencies and advanced trading tools tailored for experienced traders. This strategic move aims to position Revolut X as a strong alternative to established crypto exchanges, enhancing its presence in the European crypto market. (10)

Revolut targets Gen Z with on-campus debit card vending machine

Revolut launched a debit card vending machine at the National University of Singapore to boost financial access and literacy for students under 21. Users can get a Visa-branded card by following on-screen steps, scanning a QR code to create an account, and linking their card for immediate use, catering to Gen Z’s preference for convenience. (11)

Thrive Capital eyes $1B investment in Databricks

Thrive Capital is in discussions to invest around $1 billion in Databricks, potentially raising the company's valuation to $55 billion. This investment comes as a tender offer, allowing early stakeholders to cash out shares. Databricks, a competitor to Snowflake, previously raised $500 million at a $43 billion valuation. The move underscores Databricks' strategy of leveraging private funding to delay an IPO. (12)

CHART OF THE WEEK

Since the launch of ChatGPT in November 2022, Big Tech has gained over $8 trillion in market value, reflecting the transformative impact of AI on these companies' valuations. Nvidia, the largest contributor, benefits from its essential role in AI hardware, while Microsoft’s gains reflect its OpenAI partnership. Meta, Alphabet, Amazon, and Apple also see growth, leveraging AI across advertising, cloud, and consumer tech. The consistent upward trend, particularly from mid-2023, underscores investor confidence in AI as a key growth driver, positioning these tech giants as leaders in the rapidly advancing AI revolution.

THE UNTOLD UNICORN STORY

Kraken: The crypto platform for smarter investing

Kraken is a leading cryptocurrency exchange founded in 2011 by Jesse Powell. Headquartered in San Francisco, it is renowned for its robust security measures, wide range of supported cryptocurrencies, and advanced trading features. Kraken offers services including spot trading, futures, margin trading, and staking, catering to both novice and professional traders. It has built a strong reputation for transparency and reliability, frequently being recognized as one of the most trusted platforms in the industry. The exchange also places a significant emphasis on regulatory compliance, operating in numerous countries with adherence to local financial regulations, making it a preferred choice for many institutional and retail investors.

In November 2024, Kraken, in collaboration with fintech firms like Robinhood and Galaxy Digital, launched the Global Dollar Network—a worldwide stablecoin initiative aimed at accelerating the adoption of stablecoins and providing economic benefits to its partners. (14)

QUESTION OF THE WEEK

Why does Stableton not charge performance fees?

Stableton does not charge performance fees to offer a more investor-friendly cost structure compared to traditional private market funds, which typically have a "2 and 20" fee model (2% management fee and 20% performance fee). This approach aligns with Stableton's focus on providing efficient, cost-effective access to private market investments, which traditionally have been expensive due to high fees. By eliminating performance fees, Stableton aims to make its products more attractive and accessible, promoting long-term investment without penalizing investors for successful returns.

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WHAT'S NEXT

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Sources

1 - CNBC, 2 - TechCrunch, 3 - The Guardian, 4 - TechCrunch, 5 - Axios, 6 - Bloomberg, 7 - CNBC, 8 - CNBC, 9 - Financial Times, 10 - CoinSpeaker, 11 - The Paypers, 12 - Bloomberg, 13 - CoinDesk, 14 - Reuters

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