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Hedge funds took a diversified approach to technology investing in the first quarter as the sector built on its 2024 rally. Both Appaloosa and Coatue trimmed stakes in Nvidia during the period, with the latter shrinking his stake by 68% to $1.25 billion. Stanley Druckenmiller told CNBC last month that he cut his Nvidia stake in late March and called AI a "little overhyped" in the short run. Apple caught renewed attention from Viking Global and cuts from Coatue and Warren Buffett's Berkshire Hathaway. Coatue, Third Point, Viking Global and Tiger Global upped their Amazon stakes, while Appaloosa and D1 Capital trimmed their holdings.
Persons: Michael Burry, Ole Andreas Halvorsen zeroed, David Tepper's, Chase, Seth Klarman's Baupost, Dan Sundheim's, Phillippe Laffont's Coatue, Dan Loeb's, Halvorsen, Tepper, Sundheim, Laffont, Brad Gerstner, Stanley Druckenmiller, Warren Buffett's Berkshire, Coatue Organizations: Technology, Nasdaq, Nvidia, Meta, Capital, Microsoft, Street's, CNBC, Apple, Viking Global, Warren Buffett's Berkshire Hathaway, Tiger Global Locations: Coatue, Warren
Fresh off a $1.1 billion equity funding round, artificial intelligence infrastructure startup CoreWeave has raised $7.5 billion in debt to more heavily invest in its cloud data centers. That means CoreWeave, backed by Nvidia, is going up against the world's top cloud infrastructure operators, including Amazon and Google . On its website, CoreWeave claims to have lower on-demand prices than any major cloud company. Even Microsoft , the world's second-largest provider of cloud infrastructure, has started relying on CoreWeave to help supply OpenAI with the computing power it needs. Such GPUs were used as collateral in a $2.3 billion debt round last year, Reuters reported.
Persons: Michael Intrator, CoreWeave, ChatGPT, Colette Kress Organizations: CNBC, Investors, Nvidia, Amazon, Google, Microsoft, Citigroup, Reuters Locations: Carlyle, BlackRock
Nvidia-backed startup Coreweave is based in Roseland, New Jersey, with 160 employees. CoreWeave, a cloud infrastructure startup that rents out graphics processing units to companies, said Wednesday that it has raised $1.1 billion in funding. The new investment values the company at $19 billion, up from $7 billion months ago, a person familiar with the matter said. And during its earnings call on April 25, Microsoft said the company wasn't able to meet demand for AI cloud services. For now, CoreWeave only has three regions of data center infrastructure, all in the U.S.
Organizations: Nvidia, Computer, Microsoft, CNBC, Fidelity, Lykos Global Management, Amazon, Google Locations: Roseland , New Jersey, New Jersey, Paris, U.S
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewCompared to some of its Tiger Cub peers, $48 billion Viking Global's highs and lows have been more muted. This story is available exclusively to Business Insider subscribers. "If the stock went up 25% tomorrow, we would probably sell it absent any other fundamental change in the business." AdvertisementThe firm's flagship long-short fund was up 5.8% in the first quarter, a person close to the firm told Business Insider, and its long-only fund returned 10.1%.
Persons: , Justin Walsh, Walsh, Hermes Organizations: Service, Tiger Cub, Tiger, Business, Harvard Business School Investment, Citadel, Business Insider, Cartier Locations: Stamford, Swiss
AI companies run into hurdlesOne of the more eye-opening developments of this new phase came last week from a barely two-year-old OpenAI rival named Inflection AI. Related storiesIt has quickly become apparent that Inflection AI wasn't the only one struggling, however. Stability's Mostaque, meanwhile, seems to have conceded that Big Tech companies wield unassailable power in AI. In a post on X, he said that centralized AI was not going to be beaten with "more centralized AI". Not going to beat centralized AI with more centralized AI.
Persons: , Bill Gates, Mustafa Suleyman, DeepMind, Suleyman, Reid Hoffman, Gates, Eric Schmidt, Emad Mostaque, Googlers —, Ali Barr, Pi, Cohere, Stability's Mostaque, ike C oatue Organizations: Service, Nasdaq, Business, Big Tech, Microsoft, Nvidia
The company is considering raising a Series C before what's left of its $90 million in funding runs out. BeReal closed a $60 million Series B funding round at an around $600 million valuation in late 2022, following a $30 million Series A earlier the same year. Sooner than later, BeReal leadership will be forced to choose between raising another round and maintaining its independence or selling itself outright, running the risk of disappearing. Company leadership holds an all-hands every quarter after they meet with the company's board, which includes investors. As for the possibility of an acquisition, BeReal leadership has told employees there are "offers" that have been made, without giving any specifics.
Persons: Alexis Barreyat, what's, BeReal, Yuri Milner's, Andreessen Horowitz, Barreyat, Romain Salzman, Kali Hays, Callum Burroughs cburroughs@businessinsider.com Organizations: Business, Gas, Yuri Milner's DST, Accel Locations: Paris, Japan, Asia, Pacific, khays@businessinsider.com
Hedge funds appeared to take profits in a host of winning " Magnificent Seven " stocks during the fourth quarter at the end of a blowout year for the septet. Still, Nvidia shares rallied 14% in the fourth quarter, extending a 3% gain in the September quarter. Nor was Nvidia the only semiconductor maker that hedge funds cut back on in the fourth quarter. Reducing exposure to the rest of Magnificent Seven Hedge funds also took profits in a handful of other popular Magnificent Seven stocks that helped power 2023's AI-fueled market rally. Beyond the most prominent companies, hedge funds also made key reductions in other popular technology and semiconductor bets last quarter.
Persons: Dan Sundheim zeroed, Stanley Druckenmiller, David Tepper's, Phillippe Laffont's Coatue, Global's Chase Coleman, Jensen Huang, chipmaker, Tepper, Ole Andreas Halvorsen, Druckenmiller, Baupost Group's Seth Klarman, Coatue's Laffont, Point's Dan Loeb, Berkshire Hathaway, Value's Jeffrey Smith, Marc Benioff, Appaloosa's Tepper, Michael Burry, Druckenmiller amped, Point's Loeb, Coatue, Laffont, Tiger Global's Coleman, , Alex Harring, Yun Li Organizations: Appaloosa Management, D1, Technology, Wall, Nvidia, Management, Devices, Intel, Qualcomm, Taiwan Semiconductor, Viking, Arm Holdings, VanEck Semiconductor, Google, Microsoft, Duquesne, Viking Global, Corvex Management, Sundheim's D1 Capital, Baidu, Arista Networks, Scion, Oracle, Amazon, Tiger Global, Apple, Taiwan, Broadcom Locations: TSM, Meta, Berkshire, Salesforce, Chinese, China
Phillippe Laffont's Coatue made a flurry of changes to his portfolio in the fourth quarter, including shifts within the technology sector in the midst of the fourth quarter's big rally. Nvidia and Meta are only two of many notable cutbacks made by Laffont in the fourth quarter. Beyond Nvidia and Meta, Advanced Micro Devices , Amazon , Microsoft , Netflix and Tesla are the next biggest holdings in the fund. As of the fourth quarter, technology accounts for more than 59% of Coatue, according to InsiderScore. The Nasdaq finished 2023 up more than 43%, helped by a gain of more than 13% in the fourth quarter alone.
Persons: Phillippe Laffont's Coatue, Julian Robertson, Daniel Sundheim's, Laffont, Eli Lilly Organizations: Tiger Management, Nvidia, Meta, Taiwan Semiconductor, MIT, Intuit, Apple, Devices, Microsoft, Netflix, Tesla, Technology, Nasdaq, Ford, Moderna, Paramount Global Locations: Taiwan, Salesforce
The deck kicked off a game of one-upmanship among Wall Street banks trying to keep their employees happy. Lit capitalized on poking fun at Wall Street culture, selling $35 dad hats that read, "Do You Know Who My Father Is?" There have, of course, been endless rumors about Lit's identity, especially among Wall Street underlings. Wall Street underlings have speculated about Litquidity's identity for years. Basak, one attendee said, wanted to take a "wrecking ball through it all" and hold Wall Street heavy hitters accountable.
Persons: Goldman Sachs, I've, David Solomon, Litquidity, Goldman, Solomon, Evercore, Michael Kovac, Lit, Warburg Pincus, Jamie Dimon, Jamie Dimon's, Banksy, Bennett Jordan, who've, Lit's, — Mark Moran, , Jefferies, Richard Handler, Spencer Platt, Isaac Laifer, Laifer, Handler, We'd, Henry, Hank, Medina, He's, he's, Jefferies Medina, Bart P, Fuchs, Karl Smith, Mark Moran, Moran, Bloomberg he'd, Zack DeZon, Getty Images Moran, Brian Hanly, Hanly, Sonali Basak, Angela Weiss, cryptocurrency, we'll, Mark, Medina's, weren't, CoinFLEX, Litquidity doesn't, Dave Portnoy, wasn't, Medina Ayden Syal, Kyle Zappitell, Zappitell, he'd, hasn't, Bennett Jordan —, Craig Sjodin, Litney, Paul Argenti, Wall Organizations: Goldman, New York Times, CNBC, Business, Bloomberg, Metropolitan Club of New, Nomura, Citigroup, Financial Times, Litney Partners, Whitney Partners, BI, ESPN, Litquidity, Centerview Partners, New York, Getty, Bain Capital, Litquidity Venture Partners, SEC, Cornell University, Wexford Capital —, Deutsche Bank, Deutsche, CFA, Getty Images, Bullish, Vice, Wall Street, Litquidity's, Manhattan's Rue, Fox Business, Litquidity Ventures, Coatue Management, SAFE, Soho House, Dartmouth University Locations: New York, Tribeca, Metropolitan Club of New York, Instagram, San Francisco, Medina, New York City, Miami, NoHo, Chad, Connecticut, Litquidity, Linktree, Soho
SoftBank-backed education startup GoStudent has initiated another round of layoffs, affecting over 100 people, Business Insider understands. Austrian company GoStudent, billed as Europe's first edtech unicorn, offers one-to-one video tutoring. GoStudent did not confirm the scale of the layoffs when approached for comment by BI. The business and strategy adjustments aim to make GoStudent fully profitable and cashflow positive "as quickly as possible," he said. The fresh round of layoffs is GoStudent's third following cuts in September and December of 2022, all previously reported by BI .
Persons: GoStudent, Felix Ohswald, I've, Ohswald, Studienkreis Organizations: Business, LinkedIn, BI Locations: Austrian, Germany, Austria, Switzerland, DACH
But last year, the LA tech scene stalled, according to Carta data. Startup funding plummeted everywhere, but nowhere experienced a steeper decline than LA, where funding declined 65% from 2022. CartaLA's startup funding dropped 65% last year, a steeper decline than the Bay Area, New York or Boston. "They're very deep AI companies, but they're being applied to a vertical, which is one of the strengths of LA," Ingersoll said. Bird goes bust and Snap snaps backThere was more bad news for LA's startup scene in 2023 than just the dismal funding numbers.
Persons: Ethan Aldrich, Aldrich, there's, Andreessen Horowitz, a16z, Katia Ameri, Ameri, VCs, Nikita Bier, Bier, Mark Suster, Suster, LA's, we're, Palmer Luckey, Minnie Ingersoll, Ingersoll, Bird, Zillow, Spencer Rascoff, Evan Spiegel ERIC PIERMONT, Ishan Singh, Singh Organizations: Stanford, Business, Lightspeed Venture Partners, Coatue Management, LA Tech, LA, Carta, Honest Company, New, Boston, Microsoft, Clark, SpaceX Locations: Santa Monica, Southern California, LA, Santa, Hayes, San Francisco, Los Angeles, San Francisco and New York, New York, Boston, Carta, San Diego, Seattle, Hawthorne , CA, Costa, Bay
Tayab Waseem claims that he was a cofounder in Stability AI and that the company has reneged on its promise of a 10% stake in the London-based AI startup. Stability AI rose to prominence in 2022 when users flooded its Stable Diffusion program, generating images of everything from hyperrealistic portraits to fantasy landscapes. Stability AI raised an undisclosed amount from Intel in October 2023. Waseem joined Stability AI when the cofounders, Mostaque and Hodes, were launching a project called CAIAC, which used AI to combat COVID-19, Waseem told BI. AdvertisementAccording to the filing, Stability AI had not paid him a formal salary due to cash flow problems, instead promising him 10% in equity interest.
Persons: , Tayab Waseem, Emad Mostaque, Cyrus Hodes, Mostaque, Mike Bloomberg, Waseem Organizations: Service, Business, Intel, Getty Images, Bloomberg, Court, Eastern, of Locations: London
Vay operates what's called a "teledriving" service, where a car is driven remotely by a human rather than by a computer. German startup Vay on Wednesday launched its so-called "teledriving" solution in the U.S. for the first time, putting the company into direct competition with more richly funded and valuable American firms in the mobility technology space. Vay's service will enable people to get cars delivered to them directly by drivers in remote spaces operated by Vay. When they're done with the trip, they can choose in Vay's app to let one of the company's teledrivers take over, and then park the car. The company has already conducted tests on public roads in Europe and the U.S. with remote drivers and no one behind the wheel.
Persons: Vay, they're, Vay's teledriver, Thomas von der Ohe Organizations: Wednesday, Vay, CNBC Locations: U.S, Nevada, Las Vegas, Europe
Recruiters working with Michael Gelband's ExodusPoint no longer need to track down the hiring manager every time they find a compelling candidate. The multi-strategy manager told its recruiting partners in an email blast that the new process for submitting candidates will be through Greenhouse, the TPG Growth-backed jobs board. Gelband's former boss, Millennium founder Izzy Englander, deemed it a "talent bubble," as firms poach portfolio managers, analysts, and software engineers from each other — driving up compensation industrywide. ExodusPoint's decision to push its external recruiting network to an online portal comes as the firm integrates more than 35 new portfolio managers into its strategy over the last 12 months. Those teams will need analysts, researchers, and developers to support its growing army of portfolio managers, and the firm, like its peers, is always hunting for top-performing PMs.
Persons: Michael Gelband's ExodusPoint, Izzy Englander, Peter McConnon, Michael Lapsa, Kunal Kumar, Balyasny, Stephen Luterman, Peter Cotton, Shen Xu, ExodusPoint Organizations: Business, TPG, Engineers, CTC Capital, Citadel, JPMorgan Locations: Balyasny
Despite billions leaving the firm, Lone Pine Capital ended strong last year. The manager was down 38% and 42% in its hedge fund and long-only strategy, respectively, last year. Bloomberg reported in August that clients had pulled roughly $3 billion out of the firm in the 12 months leading up to July 2023. The firm's strong 2023 performance bested the average hedge fund, which returned less than 8%, according to Hedge Fund Research. Still, the flagship hedge fund strategy trailed the S&P 500, fellow Tiger Cubs like Tiger Global and Coatue, and other tech investors like Whale Rock and Light Street.
Persons: Cub, Steve Mandel, Pine, Mala Gaonkar's, Peers Organizations: Lone, Lone Pine Capital, Business, Bloomberg, Fund Research, Viking, D1 Capital, Tiger Cubs, Tiger, Nasdaq Locations: Lone Pine, Cypress, Greenwich
SAO PAULO, Nov 28 (Reuters) - Latin American fintech Clara has launched a payment account in Brazil that it expects will help it reach 6 billion reais ($1.23 billion) in transactions in 2024, the firm said on Tuesday, as it eyes growth in the region's largest economy. Clara, which also provides corporate cards and expense management solutions, said the new product would allow clients in Brazil to expand their payment methods, adding bank slips and express wire transfers (TEDs) to its traditional credit card. Clara announced in August it was moving its headquarters from Mexico to Brazil after obtaining a central bank license to operate as a payment institution there, allowing it to launch the so-called 'Clara Conta'. Clara's credit card already accounts for annual transactions of over a 1 billion reais in Brazil alone, and the company says operations have been doubling in size every six months. ($1 = 4.8964 reais)Reporting by Gabriel Araujo; Editing by Sonali PaulOur Standards: The Thomson Reuters Trust Principles.
Persons: Clara, Clara Conta, Gabriel Araujo, Sonali Paul Organizations: SAO PAULO, Banco, Thomson Locations: Brazil, Mexico, Colombia
Many hedge funds have been skillfully navigating this year's market volatility. For investors seeking to follow the smart money, here are the stocks that mattered the most to these managers. VerityData analyzed 565 "fundamental" hedge funds that own between 10 and 300 positions each. The research firm then created a list of stocks that most frequently appear among the 10 largest holdings of those hedge funds. Other than Microsoft, the majority of the so-called " Magnificent Seven " mega-cap tech stocks — Amazon, Meta, Apple, Nvidia and Google's Alphabet — also made the list, VerityData said.
Persons: VerityData, Philippe Laffont's Coatue, Chase, Meta, Berkshire Hathaway Organizations: Microsoft, Philippe Laffont's Coatue Management, Tiger Global, Apple, Nvidia, JPMorgan, Berkshire
Monzo, a British fintech bank, is in talks with Alphabet's private investment arm Capital G to raise what is primed to be its last funding round before a public listing. The bank touts around 8.5 million customers in the UK and is best known for its bright coral pink bank cards. Fintech funding in Europe dropped 70% to $5 billion from $17.1 billion in the first half of 2023, compared with 2022, according to Finch Capital. The prospective funding round is set to be the fintech's last private raise before a mooted public debut that would likely take place in late 2024 or 2025. The British bank reported £116.3 million in losses last year despite more than doubling its revenue.
Persons: Monzo, Catalyst, Monzo's, Cash, Conor Walsh, Anil Organizations: Business, Sky News, Abu Dhabi Growth Fund, Silicon, VC, fintech, Finch, London, Starling Bank Locations: British, London, Abu Dhabi, New York, Europe, Monzo, Starling
A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 14, 2017. ValueAct and Disney declined to comment. Disney's stock price could trade between $120 and $190 a share, far above its current $94.19 price, ValueAct has suggested, the people said. Unlike other activist investors who noisily push for change through public presentations, ValueAct prefers to work quietly behind the scenes. In January, ValueAct CEO Mason Morfit was invited onto Salesforce's (CRM.N) board at a time the company had at least five activist shareholders.
Persons: Brendan McDermid, ValueAct, Mickey, Nelson Peltz's, Peltz, Shaw, Trian, Mason Morfit, Svea Herbst, Bayliss, Dawn Chmielewski, Arsheeya, Arun Koyyur, David Gregorio Our Organizations: Walt Disney Company, New York Stock Exchange, REUTERS, ValueAct, Walt Disney, Disney, 13D Monitor, Pixar, Star Wars, Marvel, Fund Management, Management, Capital Partners, Microsoft, Svea, Thomson Locations: New York, U.S, San Francisco, Los Angeles, Bengaluru
Coatue Management's Philippe Laffont bought into Instacart 's initial public offering last quarter, while maintaining his artificial intelligence plays as top holdings. Laffont, one of the so-called Tiger Cubs who worked under the late Julian Robertson at Tiger Management, revealed a $305 million stake in Instacart, according to a new filing. The grocery delivery company went public in September, and shares have dropped about 40% from their opening price of $42. Other popular AI plays can also be found in Coatue's top holdings, including Amazon , Advanced Micro Devices , Microsoft and Alphabet. Elsewhere, Coatue doubled its stake in Eaton Public , an American-Irish power management company, last quarter, according to the filing.
Persons: Coatue Management's Philippe Laffont, Julian Robertson, Instacart, Coatue Organizations: Tiger Cubs, Tiger Management, Nvidia, Devices, Microsoft, Eaton Public Locations: Instacart, U.S, New York, Meta, American
NEW YORK, Nov 14 (Reuters) - Some big investors showed increased appetite for weight-loss drug makers in the third quarter, piling in to shares of Eli Lilly (LLY.N) and Novo Nordisk amid growing demand for their product, securities filings showed on Tuesday. Shares of Eli Lilly rose 14.5% in the third quarter and are up 67% this year. Some investors also bought more American Depositary Receipts of Novo Nordisk, including Fidelity Investments, Lazard Asset Management, T Rowe Price and Soros Fund. Novo Nordisk on Saturday presented data showing that the heart protective benefits of Wegovy are not solely due to weight loss, which could make it easier for healthcare insurance reimbursement in the future. Still, other investors trimmed their exposure to Eli Lilly, such as Wellington Management Group, California Public Employees Retirement System and Bridgewater Associates.
Persons: Eli Lilly, Eli Lilly's Mounjaro, JPMorgan Chase, Eli Lilly's, Rowe Price, Marshall Wace, LSEG, “ Stocks, , Vincent Aita, Carolina Mandl, Ira Iosebashvili, Matthew Lewis Organizations: Novo Nordisk, Novo, JPMorgan, Vanguard, Sigma, Tiger Global Management, Coatue Management, U.S . Food, Drug Administration, Novo Nordisk's Wegovy, Bank of America, Fidelity Investments, Lazard Asset Management, Soros Fund, Wellington Management Group, California, Bridgewater Associates, Marshall, Renaissance Technologies, Capital Management, Pfizer, Carolina, Thomson Locations: BlackRock, U.S, New York
Biswanath Panda, vice president of monetization engineering who reported to Khajehnouri, left the company in May after just a year in the role and joined Uber. Jacob Andreou, Snap's former senior vice president of product and growth, left after working there since 2015 and then joined Greylock. Vice president of product Peter Sellis left Snap in September after eight years, taking on a similar role with Discord. Snap in June hired Eric Young as its new senior vice president of engineering, with Khajehnouri then reporting to him. In addition to Young, Darshan Kantak joined as senior vice president of revenue product, Patrick Harris joined as president of Americas, Ronan Harris joined as president of EMEA, and Ajit Mohan joined as president of APAC.
Persons: Nima Khajehnouri, Khajehnouri, Evan Spiegel, Spiegel, he's, Jeremi Gorman, Peter Naylor, Jerry Hunter, Gorman, Ben Schwerin, Biswanath Panda, Uber, Jacob Andreou, Greylock, Peter Sellis, Hunter, Eric Young, Young, Darshan Kantak, Patrick Harris, Ronan Harris, Ajit Mohan Organizations: Snap, EMEA Locations: Snapchat
Tacto, a small German AI supply chain startup, is set to raise new funding from US giant Sequoia and is already in talks with a different high-profile investor to raise another round. Sequoia is set to lead Tacto's Series A round, six sources familiar with the deal told Insider. Unusually, the startup has already begun talks to raise another round of funding in addition to the Sequoia deal. Tacto is also in talks with London-based Index Ventures to immediately raise another funding round, five sources said. Andreessen Horowitz led a seed round in tiny AI startup ElevenLabs in March, and is also in talks with months-old company Mistral.
Persons: Tacto, Andreessen Horowitz, Fintech, Hanno Renner Organizations: London, Ventures, Sequoia, Energy, nab, Cherry Ventures, UVC Partners, Club Locations: Sequoia, Munich, Berlin
Dutch payments fintech startup Fero has raised $3 million in a seed funding round from US hedge fund Coatue. The Amsterdam-based startup, founded in 2022, aims to improve the customer verification process at checkouts and decrease the level of abandoned purchases. Payment authentication, where customer identities are verified, has become much more crucial for businesses since the rollout of Europe's PSD2 Open banking regulations. Fero wants to reduce the level of friction customers face during this authentication process, the startup's cofounder and CEO Craig Savage said. The company went through the tech startup incubation program Antler before raising this $3 million seed funding round led by Coatue, alongside Volta Ventures and Antler.
Persons: Fero, Craig Savage, Savage, Coatue Organizations: Volta Ventures Locations: The Amsterdam, Madrid, Amsterdam
AdvertisementAdvertisementDid OpenAI just kill a bunch of startups by making a small update to ChatGPT? Specifically, he referred to "wrapper startups." AdvertisementAdvertisementIt isn't necessarily the case that founders who build AI wrapper businesses are doing this to exploit a weakness in ChatGPT. In May, data scientist Alex Reibman announced ChatOCR , a ChatGPT plugin that "reads text from PDFs, including scans and handwriting." Following the ChatGPT update at the weekend, he ran a poll on X that asked users what would happen to his plugin "now that ChatGPT has built in PDF processing."
Persons: , Sam Altman's, ESFt7bpGyy — Rowan Cheung, OpenAI, Alex Reibman, they've Organizations: Big Tech, Service, Investors, ChatGPT, LinkedIn, Bessemer Venture Partners Locations: There's
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