OpenAI's Chip Play

Plus: Salesforce makes an AI Move, and Nvidia faces antitrust probes

SaaS & Infra

Salesforce snags Tenyx to bolster AI voice agent offerings

Salesforce is on a mission to solidify its position in the red-hot AI market. The enterprise software giant announced its acquisition of Tenyx, a developer of AI-powered voice agents. While financial details remain under wraps, the deal is expected to close this quarter. This strategic move underscores Salesforce's commitment to infusing AI across its product portfolio, even as it faces pressure from activist investors to prioritize profitability over aggressive expansion.

Asana stock stumbles despite Q2 earnings beat

Work management software provider Asana Inc. (ASAN) saw its share price plummet nearly 13% in after-hours trading despite surpassing Q2 earnings and revenue expectations. While the company reported strong growth in its higher-paying customer segments, investors were disappointed by a weaker-than-expected revenue outlook for Q3 and the full fiscal year. Asana's management emphasized the company's strategic focus on enterprise customers and its recent advancements in AI, including the launch of AI Teammates.

AI

OpenAI reportedly selects TSMC for debut AI chip

OpenAI, the company behind ChatGPT, is reportedly taking a significant step towards developing its own AI hardware. Taiwanese media outlets suggest that the AI research firm has chosen TSMC, the world's leading contract chip manufacturer, to produce its first custom-designed silicon. Sources indicate that OpenAI has secured production capacity on TSMC's advanced 1.6-nanometer manufacturing process, with mass production expected to commence in the latter half of 2026. This move aligns with OpenAI's ambitious goal of achieving greater control over its supply chain and reducing its reliance on third-party chipmakers.

Justice Department probes Nvidia for potential antitrust violations.

Nvidia (NVDA), the dominant force in AI chips, finds itself under the regulatory microscope. The company's shares took a 2% hit in extended trading following a Bloomberg report revealing that the Department of Justice has issued subpoenas as part of an antitrust investigation. This news comes on the heels of a brutal 10% drop in regular trading, wiping out a staggering $279 billion from Nvidia's market cap. The DOJ is specifically examining whether Nvidia has erected barriers to entry for competitors in the AI chip market, where it commands an 80% market share.

Consumer

Airbnb urges New York City to reconsider short-term rental rules

Airbnb is pushing back against New York City's stringent regulations on short-term rentals, claiming they harm both travelers and the local economy. The company argues that Local Law 18, which requires hosts to be permanent residents and register their units, has failed to alleviate the city's housing crisis. Airbnb cites data showing a significant drop in available listings and a spike in hotel rates since the law's implementation, urging a reevaluation to increase accommodation options and support local businesses.

Uber sets sights on investment-grade bond debut

Fresh off its recent credit rating upgrades to investment grade by all three major agencies, Uber is wasting no time tapping into the debt markets. The ride-hailing giant is reportedly lining up investor calls for a potential multi-billion dollar bond sale. This strategic move is expected to enable Uber to refinance existing debt at lower interest rates, further bolstering its financial position as it continues to deliver record profitability and robust growth.

Snap CEO rallies troops as ad business lags

Snap Inc. CEO Evan Spiegel is striving to reinvigorate his workforce amid a 48% plunge in the company's stock price this year. In an internal memo, Spiegel acknowledged that Snap's advertising business has been slow to recover compared to rivals like Meta and TikTok. He highlighted several initiatives aimed at reigniting growth, including a shift towards direct response ads and the introduction of new ad formats within the Snapchat app.

Venture

Health care PE funds outshine VC counterparts in H1 2024

Fundraising for health care-focused private equity funds outpaced venture capital in the first half of 2024, signaling continued investor confidence in the sector despite broader economic uncertainties. A PitchBook report revealed that PE managers are on track to match 2023's record fundraising levels, while venture capital experiences a market reset. This trend highlights a flight to established businesses and proven business models as investors seek greater certainty amidst economic turbulence.

Cleantech companies face mounting challenges

The once-booming cleantech sector is encountering a harsh reality check as high interest rates and delayed government funding create significant headwinds. Several high-profile cleantech companies, including battery startup Moxion Power and solar panel provider Lumio, have filed for bankruptcy in recent weeks. Industry experts caution that the capital-intensive nature of the sector, coupled with the challenging macroeconomic environment, presents significant hurdles for cleantech startups seeking to scale their operations.

(Sources: Reuters, SiliconANGLE, CNBC, Bloomberg, The Register, Axios, Financial Times)

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