Arm raises $5B at $54.5B valuation in IPO, at 20x P/S
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Top stories today:
- Arm raises $5B at $54.5B valuation in IPO, 20x P/S
- Elon after Senate AI meeting: “strong consensus” on regulation
- Starlink revenue $1.4B in 2022, from $0.2B in 2021
- Stable Audio, Stability's text-to-sound AI, launches
- Core CPI bounces back to 0.3% MoM, markets don't see hikes
0. Data and calendar
All values as of 6 AM ET / 3 AM PT, other than S&P500 close (4 PM ET / 1 PM PT).
All times are ET.
1. Arm raises $5B at $54.5B valuation in IPO, 20x P/S
Today: trading starts.
95.5M shares sold for $51, raising $4.87B.
At the high of the $45 - $51 range.
12x oversubscribed. - Axios
2. Elon after Senate AI meeting: “strong consensus” on “some AI regulation”
All members present raised their hands when asked if they supported government regulation on AI, according to Elon and Senate Majority Leader Schumer.
“Probably” legislation is coming: “legislative process is not a swift one,” according to Elon. - The Verge
Before 2024? “Schumer said there were discussions on some immediate actions needed before the next U.S. elections in 2024.” - Reuters
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4. Starlink revenue $1.4B in 2022, from $0.2B in 2021 but short of $12B goal set in 2015
It is hard to set goals that far in advance, of course.
1M subscribers in 2022.
$3.2B in CAPEX in 2022, meaning the SpaceX unit is highly unprofitable.
4.7K Starlink satellites, which have to be replaced every 5 years. - WSJ
5. Stable Audio, Stability's text-to-sound AI, launches
Our view: after Meta's Llama 2 crushed StableLM, we suspect Meta's MusicGen 2 will be superior to Stable Audio
We await formal statistical comparisons between Stable Audio and MusicGen 1.
6. Core CPI bounces back to 0.3% MoM, but markets still don't believe in further rate hikes
Markets still price in no further rate hikes and rate cuts starting in June 2024
7. Instacart 2018+ investors are underwater vs. expected IPO price
Sequoia x CEO: More than 2 years ago, Sequoia's Mike Moritz tried to convince other investors to remove then-CEO Apoorva Mehta, mostly due to his reluctance to go public. - The Information
Tuesday: Instacart stock expected to start trading.
Wednesday: Klaviyo stock expected to start trading. - IPOScoop
8. Map: Global Crypto Adoption Index
9. Interesting tweets, memes, and videos
10. Other headlines
Caesars Entertainment paid $10M’s to hackers to avoid data leak.
Elon told journalist Twitter would have to accommodate China due to Tesla.
Sidebar is a private community for exceptional leaders with bold goals.*
TikTok expands new creator fund beyond U.S.
Google lays off 100s on recruiting teams.
Microsoft's Hololens MR glasses gets nod from Army in new test.
Whatsapp rolls out Channels.
Trust & Will makes online estate planning easy & affordable.*
Mummified aliens presented to Mexican Congress as alleged UFOs.
Tech & law
Bill Maher's HBO show to return without striking writers.
Korea to get 25 F-35s (top fighter) for $5B.
RTX, Saudi deal collapses after China, Russia links emerged.
Meduza owner's phone hacked with Pegasus spyware.
Taiwan attacks Elon: “not part of the PRC”, “not for sale.”
Putin accepts invitation to visit North Korea.
Taliban welcomes China's new ambassador.
Libya flood kills 1000s.
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