Arm raises $5B at $54.5B valuation in IPO, at 20x P/S
Bay Area Times
September 14, 2023
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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
Not open-source, unlike most of Stability's products.
Freemium model: the free version allows 20 generations of 20 seconds, and the $12/mo Pro version allows 500 generations of 90 seconds, per month. - Techcrunch, Stability AI
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
AI
Amazon launches AI tools to help sellers write descriptions.
OpenAI to open Dublin office, after London announcement.
Adobe Firefly generally available.
Journal unpublished paper after authors caught using ChatGPT.
Tech
Caesars Entertainment paid $10M’s to hackers to avoid data leak.
Elon told journalist Twitter would have to accommodate China due to Tesla.
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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.
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Mummified aliens presented to Mexican Congress as alleged UFOs.
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Tech & law
U.S. v. Google day 2: Apple lodges confidentiality protest.
Twitter aims to settle lawsuits with 2K fired employees.
Biotech
AI detects eye disease, heart failure, Parkinson's from retinal images.
AI could cure cancer: Moderna CEO.
Bold, healthy aging company, raises $17M Series A.
Moderna kills 4 clinical programs.
Business
Bill Maher's HBO show to return without striking writers.
Crypto
FTX judge allows estate to sell $3.4B in crypto, including $1.2B in SOL.
Mila Kunis’ NFT project agrees to return $8M raised, pay $1M fine.
SBF's parents: an exposé.
Three Arrows hit with 9-year trading ban in Singapore.
U.S. politics
DACA again ruled unlawful by federal judge.
Saudi Arabia's $700B sovereign fund subpoenaed by Senate.
Romney to retire, suggests Biden, Trump do the same.
Vivek wants to cut 1M civilian federal employees.
Trump joins Vivek, others in saying he will shut down DoEducation.
World
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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