Squarespace Buyout Battle, SoftBank's AI Chip Hunt, and FTC's Google Scrutiny

WEDNESDAY, AUGUST 14, 2024

Cloud & Infra

Squarespace Investor Opposes $6.9 Billion Buyout Deal

Glazer Capital, a shareholder in Squarespace Inc., has publicly opposed the website builder's proposed $6.9 billion acquisition by Permira. Glazer, which claims to control 5.4% of Squarespace's minority shareholder stock, argues that the $44 per share offer undervalues the company and is the result of a flawed sale process orchestrated to benefit Squarespace CEO and founder Anthony Casalena. Glazer believes Squarespace is worth at least $49.30 a share.

German Cyber Agency Demands Changes After CrowdStrike Outage

Following last month's global Microsoft Windows outage caused by a faulty CrowdStrike security software update, Germany's Federal Office for Information Security (BSI) is pushing for changes in how cybersecurity companies design their products. The BSI aims to limit these firms' access to the Windows kernel, arguing that this would reduce the risk of another major meltdown. While the agency can't enforce these changes directly, it plans to organize a conference with major tech players to discuss the issue and encourage safer practices.

AI

SoftBank Explores AI Chip Tie-Ups to Challenge Nvidia

SoftBank is actively seeking partnerships to develop AI chips capable of competing with industry leader Nvidia. Talks with Intel recently fell through, with sources claiming the US chipmaker couldn't meet SoftBank's production demands. SoftBank is now reportedly in discussions with Taiwan Semiconductor Manufacturing Co (TSMC), though no agreement has been reached. SoftBank's ambitious plan involves combining the chip designs of its subsidiary Arm with the production capabilities of its recent acquisition, Graphcore.

Google’s Live Gemini Demo Highlights AI Smartphone Advancements

Google showcased the mobile capabilities of its new AI assistant, Gemini, during its Pixel phone launch event. Despite a few technical hiccups during a live demo, Google demonstrated Gemini’s ability to interact with images and provide context-aware assistance. The company emphasized that its AI features are ready for consumer testing, contrasting its approach with rivals like Apple, whose more advanced AI features are still in development or limited release.

Consumer

FTC Enters Google v. Epic Games Case, Hints at Potential Google Breakup

The US Federal Trade Commission (FTC) has intervened in the Epic Games Inc. v. Google case, submitting an amicus brief that raises concerns about Google's potential monopolistic practices. The FTC suggests that the court should consider measures to "restore lost competition" and prevent Google from "reaping the rewards of illegal monopolization." While the FTC's brief doesn't explicitly call for a breakup of Google, some experts believe it's a possibility.

Spotify Bows to EU Pressure, Adds Price Information to iOS App

After months of resistance, Spotify will update its app on Apple devices in the European Union to include pricing details for its plans and services. This move comes after the EU fined Apple €1.84 billion ($2 billion) for anti-competitive practices on its App Store. Although Spotify will comply with Apple's new rules, it will not include external purchase links to avoid paying Apple commissions.

Venture

Radical Ventures Raises Nearly $800 Million for AI Investments

Toronto-based Radical Ventures has secured almost $800 million for its third institutional fund, making it the largest fund dedicated to AI. The firm, an early backer of successful AI companies like Cohere, will focus on growth-stage startups. This significant capital raise comes amidst growing interest in AI, fueled by advancements in generative AI and the success of ChatGPT.

General Catalyst Pours $120 Million into US Manufacturing Startup

Venture capital firm General Catalyst has invested $120 million in Re:Build Manufacturing, a startup aiming to consolidate and strengthen US manufacturing capabilities. Re:Build, which has raised a total of $600 million since its 2021 inception, acquires and operates a network of 13 industrial and engineering businesses across various sectors, including defense, aerospace, and healthcare. The investment reflects a growing trend of VC interest in reshoring critical manufacturing processes to the US.

Defense Tech Sees Decline in VC Deal Volume, But Mega-Rounds Persist

Despite a recent slowdown in overall venture capital investment in defense technology, the sector continues to attract large funding rounds. Anduril, a California-based defense startup, recently closed a $1.5 billion funding round, highlighting the availability of capital for promising companies. However, data from PitchBook reveals that the pace of defense tech deals has declined in 2024, with only 228 deals worth a combined $9.1 billion closed as of June.