2 min read

OpenAI on a Buying Spree, CrowdStrike Soaring High, and Election Boosts Meta

OpenAI Acquires Multi, Eyes Remote Collaboration Market: OpenAI has been on a rapid acquisition spree, recently purchasing two companies in a matter of days, as reported by TechCrunch. Following the acquisition of database technology firm Rockset, OpenAI has acquired Multi, a startup that developed a video-first collaboration platform designed for remote teams. The deal is technically an acqui-hire, meaning that OpenAI will primarily be acquiring Multi's team of around five employees.

The acquisition of Multi fits into OpenAI's broader strategy of investing heavily in enterprise solutions, particularly as its ChatGPT platform has seen a surge in corporate adoption. With a user base of nearly 600,000 corporate users, including 93% of Fortune 500 companies, OpenAI has been actively exploring ways to integrate its AI technology into business operations. The recent partnership with PwC to resell OpenAI's tools and the launch of a business-oriented custom AI model tuning and consulting program are further evidence of this strategic shift. OpenAI's revenue is expected to exceed $3.4 billion this year, showcasing the success of its foray into the enterprise market. It's possible that we could see OpenAI integrate Multi's video conferencing and remote collaboration capabilities into a future iteration of ChatGPT, further strengthening its position in the enterprise space.

Other news in the market:

  • CrowdStrike Soars: Cybersecurity giant CrowdStrike hit all-time highs last week and continues to impress. The company recently smashed earnings expectations, boasting a nearly 34% year-over-year increase in subscription revenue and a 33% jump in annual recurring revenue. This strong performance comes on the heels of CrowdStrike's announcement that it will join the prestigious S&P 500 index. CrowdStrike's pivot to profitability, in particular, is driving investor confidence. Their Falcon platform, a comprehensive cybersecurity solution for large enterprises, fuels this growth by consolidating security spending under one umbrella.
  • Ad Dollars Fuel Meta's Growth: Meta Platforms is firing on all cylinders, with a recent price target hike to $540 reflecting bullish sentiment around the tech giant. The key driver? Robust ad spend across Meta's platforms, fueled by a massive user base of over 3 billion daily active users. Analysts are particularly excited about the upcoming election year, predicting a surge in political ad spending that will further bolster Meta's revenue. Although concerns linger about Meta's increasing operational expenses and substantial investment in AI, its strong market position and attractive valuation make it a compelling opportunity for investors.
  • Esty's Woes: Once a haven for unique handcrafted goods, Etsy is going through a tumultuous period. While reporting record revenue in 2023, the platform has seen a decline in sales for the second consecutive year, its stock price has lost nearly 80% of its value since the peak in 2021. The company's struggles stem from a shift away from its original mission of promoting handmade goods, with the introduction of outside manufacturers and the rise of dropshippers and AI-generated designs diluting its authenticity.