OpenAI Lures New Funding as Dell Surges on AI Demand, Atlassian Snags Rewatch for AI Meetings

Cloud & Infra

Dell Experiences Soaring Server and Networking Revenue Thanks to AI

Dell Technologies has reported an 80% surge in server and networking revenue, driven by high demand for AI infrastructure. The company's close partnership with Nvidia and its focus on AI-optimized servers has positioned it as a key player in the burgeoning AI market. Dell's Infrastructure Solutions Group (ISG) reported a 38% increase in revenue, reaching $11.65 billion, with server and networking revenue hitting a record $7.7 billion. While Dell's PC business faced a decline, the company remains optimistic about the potential of AI PCs to drive future growth.

Elastic Stock Plummets 25% Despite Exceeding Revenue Forecasts

Despite surpassing revenue expectations with a 18% year-on-year increase, reaching $347 million, Elastic's stock price suffered a significant 25% drop. This decline follows a revenue warning issued by the cloud search company, citing a slower-than-anticipated start to the financial year due to segmentation changes. While Elastic's cloud services revenue showed strong growth, reaching $157 million, the company’s adjusted full-year revenue forecast fell short of analysts' expectations.

Atlassian Acquires AI Meeting Platform Rewatch

Atlassian has acquired Rewatch, an AI-powered platform for recording, transcribing, and analyzing meetings. The company plans to integrate Rewatch into its existing products, Loom and Rovo AI. The integration will enable Loom to automatically generate transcripts, notes, and action items from meetings, while Rovo AI will be able to search and analyze meeting content within the broader context of a business. While the financial terms of the deal were not disclosed, Rewatch had previously raised $20 million in Series A funding led by Andreessen Horowitz.

AI

Apple and Nvidia in Talks to Join Microsoft in Funding OpenAI

Apple and Nvidia are reportedly in discussions to participate in OpenAI's latest funding round, which could potentially value the AI company at over $100 billion. Microsoft, already a major investor in OpenAI, is also expected to contribute to the round. This move highlights the growing strategic importance of AI for these tech giants. Apple has integrated OpenAI's technology into its Apple Intelligence service, while Nvidia supplies the GPUs that power OpenAI's AI models.

OpenAI’s ChatGPT User Base Doubles in Under a Year

ChatGPT, the popular AI-powered chatbot developed by OpenAI, has reached an impressive milestone, surpassing 200 million weekly active users. This represents a twofold increase in its user base compared to the same period last year. OpenAI attributes this remarkable growth to the adoption of its products and services by a large number of Fortune 500 companies, with 92% of them utilizing OpenAI's offerings.

Consumer

Uber Remains Committed to South Korea Despite Challenges

Despite facing stiff competition from local rival Kakao, which dominates the South Korean ride-hailing market with over 90% market share, Uber CEO Dara Khosrowshahi has reaffirmed the company's commitment to the country. Khosrowshahi highlighted Uber's rapid growth in South Korea, with passenger numbers surging by nearly 80% year-on-year in the first half of 2024. Uber re-entered the South Korean market in 2021 through a joint venture with SK Group, after facing regulatory hurdles in its initial attempt.

PDD Holdings Tanks 33% After Earnings Miss, Hedge Funds Feel the Pain

Chinese e-commerce giant PDD Holdings, owner of the popular platform Temu, saw its stock price crash 33% last week after missing revenue expectations. The company's warning about intensifying competition and lack of planned shareholder rewards spooked investors, especially hedge funds who had piled into the stock. Analysis of 13F filings shows these funds held over 102 million PDD shares at the end of June – positions now worth an estimated $4 billion less, highlighting the risks inherent in the volatile Chinese tech sector.

Venture

Silicon Valley on Edge Over Proposed Tax on Unrealized Gains

A proposed tax plan by US vice-president Kamala Harris, which includes taxing unrealized gains on assets worth over $100 million, has sparked concern and opposition from Silicon Valley's wealthy investors. Critics, including Marc Andreessen of a16z, argue that the tax could stifle innovation and discourage investment in startups. Proponents, however, contend that the plan would address inequality in the US tax system, where the ultra-wealthy often pay a lower effective tax rate than average Americans. The proposal faces significant political and legal hurdles, and its fate remains uncertain.

Bolt CEO Threatens Legal Action Amidst Tumultuous Funding Round

Fintech company Bolt finds itself embroiled in controversy as its CEO, Justin Grooms, has issued a veiled legal threat against potential investor Silverbear Capital, as reported by TechCrunch. Grooms alleges "internal miscommunication" led to confusion around a $200 million commitment from the firm, a claim Silverbear denies. This adds to the drama surrounding Bolt's aggressive attempt to raise $450 million, which includes an unusual structure requiring existing investors to increase their stake or risk losing equity. The situation remains fluid, with additional uncertainty surrounding the involvement of The London Fund and its contribution of "marketing credits."

(Sources: Reuters, Windows Central, The Wall Street Journal, Financial Times,The Register, TechCrunch)

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