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  • CoreWeave seeks to sell $500M in secondary shares at ~$6B

CoreWeave seeks to sell $500M in secondary shares at ~$6B

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Top stories today:

  1. CoreWeave seeks to sell $500M in secondary shares at ~$6B
  2. Tesla unveils sleeker Model 3, again cuts prices
  3. OpenAI launches ChatGPT guide for teachers
  4. Elon's purchase of Twitter: behind the scenes
  5. PCE inflation came as expected: 3.3%, core 4.2%

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. CoreWeave seeks to sell $500M in secondary shares at ~$6B

  • Coreweave is an AII chip cloud provider that has NVIDIA as a major backer.

  • Co-founders + some employees would sell 8% common shares in an unusually large secondary sale. - The Information

  • Hired Morgan Stanley as an advisor.

  • Valuation of $5-8B; at $6B, it would mean 12× exp. 2023 revenue, 2x the forward P/S among public cloud firms. - Bloomberg

Coreweave is known for its aggressive financial engineering, with its capital structure being 80% funded by debt

2. Tesla unveils sleeker Model 3, again cuts prices of Models S, X in China

  • EV competition is stiff, particularly in China.

    • Model S -14% to $96K in China, vs. $75K in the U.S.

    • Model X -18% to $102K in China, vs. $80K in the U.S.

    • The New Model 3 is surprisingly +12% more expensive than the older model in China, starting at $36K. It is launching in Europe but not yet in the U.S. - Electrek

    • All China price moves are coordinated with the CCP, in line with the pledge Tesla has signed to adhere to the country's “socialist values.” - Daily Caller

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4. OpenAI launches ChatGPT guide for teachers

5. Elon's purchase of Twitter: behind the scenes into his ruthlessness

  • An excerpt from Walter Isaacson's biography of Elon Musk was published in the WSJ.

    • Sep 12. release date.

    • He bought Twitter not to leave $10B in the bank: “I didn’t want to just leave it in the bank, so I asked myself what product I liked, and that was an easy question. It was Twitter.”

    • On former CEO Agrawal: “What Twitter needs is a fire-breathing dragon. [He’s] a really nice guy. ”

    • On SBF: “My bullshit detector went off like red alert on a Geiger counter. He was talking like he was on speed or Adderall, a mile a minute. I thought he was supposed to be asking me questions about the deal, but he kept telling me the things he was doing. And I was thinking, ‘Dude, calm down.’” - WSJ

6. PCE inflation comes in as expected in July, at 3.3% YoY, with core PCE at 4.2%

  • PCE: 0.2% MoM / 3.3% YoY in July, vs. 0.2% / 3.3% expected, from 0.2% / 3.0% in June.

  • Core PCE: 0.2% / 4.2%, vs. 0.2% / 4.2%, from 0.2% / 4.1%.

  • Core PCE ex-housing: 0.5%, from 0.3%. - Reuters

7. Bankers are working 3-4 days/week in office, but want more flexible schedule

8. Interesting tweets, memes, and videos

9. Other headlines

AI

  • Baidu launches Ernie chatbot after China approval.

  • AI drone beats human record at drone racing.

Tech

  • Twitter has licenses in multiple states to process payments, crypto.

  • Shopify introduces TikTok Shop integration.

  • Flannery has bought $900M in lands to build new Bay Area city.

  • Threads snippets featured on Instagram to encourage usage.

  • Range, backed by Google's AI Fund, has revolutionized wealth management.*

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Tech & law

  • Federal judge blocks AR law requiring parental consent for social media.

    • Judge blocks TX law requiring age verification for adult sites.

  • ASML to ship restricted chip-making machines to China until year-end.

  • Commerce Dept.: U.S. “has not blocked chip sales to the Middle East.”

  • Google: DOJ antitrust chief has ethical conflict, bias.

  • Babylon, bankrupt, sold most parts to eMed.

Biotech

  • Saudi's Hevolution Foundation donated $20M out of $1B/year goal.

  • Sana lays off staff, going through restructuring.

  • Physical exercise slows down aging in epigenetic clocks.

Business

  • China's new stimulus: currency deposits, property sector, tax breaks.

  • ESPN out of Charter while they renegotiate higher cable fees.

  • Kylie Jenner considers buying back Coty's $600M stake, stock unchanged.

  • Messi: next game most expensive yet, at $690 average ticket.

  • Dell revenue -13% YoY to $22.9B in Q2 FY.

  • Russia agrees to further OPEC+ oil-export cuts.

Crypto

  • Bitcoin ETF: SEC delays decision for all applicants.

  • Uniswap not responsible for scams, federal judge rules.

  • Binance APAC head resigns.

U.S. politics

  • Shutdown: WH asks Congress to pass funding bill by Oct. 1.

  • Fentanyl: WH offers $450M program for combating epidemic.

  • Trump GA trial to be livestreamed on Youtube.

  • McConnell may be removed as GOP Senate leader.

  • DeSantis-aligned super PAC asks for $50M from donors.

  • Proud Boys leader gets 17 years for seditious conspiracy.

World

  • Ukraine penetrates main Russian line in southeast.

  • Putin seizing control of Wagner's empire in Africa, ME.

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