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Elon Takes X On The Road
Also the FTC is looking into the Big Tech AI investments and Bilt says we're back.
Adam Hardej
January 26, 2024
Daily(ish) news and live events for venture nerds.
Not the drug. Not one of his kids. X is the name of his AI company and he’s earning some frequent flyer miles on the fundraising tour. Supposedly. Meanwhile, the FTC is looking into all this Big Tech AI investing action and apparently we’re back because Bilt just raised $200M.
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Elon Musk’s AI start-up seeks to raise $6bn from investors to challenge OpenAI
“Three people with knowledge of the talks said Musk hoped to raise as much as $6bn in fresh equity capital for xAI at a proposed valuation of $20bn. However, the people cautioned that negotiations were ongoing and that the Tesla chief was still testing investor appetite for such large sums.”
This comes shortly after a Bloomberg report earlier this moth that said it had raised $500mn. Musk said on X that the report was “fake news” which leaves us all guessing a bit. If I was a gambling man, I’d say we’ll get some more substantial news this quarter about what his plans are here and I’d be surprised if Elon intends to let Sam Altman wear the AI crown unopposed.
FTC opens inquiry into Big Tech AI investments
“The FTC wants to make sure tech giants aren't bypassing traditional reviews while making huge investments that let them neutralize or absorb smaller potential rivals.”
In 2023, we saw some major players invest in some of the top AI startups (Microsoft & OpenAI, Amazon & Anthropic). Now, the FTC wants to comb through the details of these investment deals. The FTC worries that the big players are gaining too much market and in turn, won’t allow for any new players emerge.
Loyalty Startup Bilt Rewards Hits $3.1B Valuation After $200M Round
“We’re not just building a loyalty program; we’re creating a community-centric ecosystem that benefits everyone from renters to local businesses,”
In one of the most notable fundraises so far this year, Bilt doubled their valuation in this latest raise. They also reported being profitable on an EBITDA basis and appointed some serious talent to their board. Former CEO of Amex, Ken Chenault, is now the chairman and Roger Goodell is an independent director. Fancy shmancy.
Hot Links
Demo Day Was A Hit!
Thank you to the over 300 of you who showed up live and the hundreds since then who have watched the recordings! It’s exciting to be back at it and there’s more coming soon.
I will share some cleaned up clips on Monday! In the meantime, you can:
See you at the next one! Subscribe to our events calendar here 🙂
AI & B2B SaaS
It’s actually crazy that this is the second event on this list. We’re also very casually adding Benjamin Gammell - CFO at Brex - to this already incredible crew of operators.
Join us live on Tuesday, February 6th at 3pm EST to learn more about the role of AI in B2B SaaS from two THREE world class operators:
Wade Foster is the Co-founder and CEO of Zapier.
Zapier is a leading automation tool that connects over 5,000 third-party apps and services, enabling businesses to automate repetitive tasks and streamline workflows. Founded in 2012, Zapier has grown to serve over 2.2 million customers.
Des Traynor is the Co-founder and CSO of Intercom.
Intercom is a customer messaging platform that helps businesses build strong customer relationships. Founded in 2011, Intercom has grown to serve over 25,000 customers.
Benjamin Gammell is the CFO at Brex.
Brex is the AI-powered spend platform. Over 20,000 companies from startups to global enterprises — including DoorDash, Flexport, and Compass — use Brex to proactively control spend, reduce costs, and increase efficiency on a global scale.
Another shoutout to Walter Chen from Sacra for helping put this together!
IRL Events Coming Soon
Poll results are in!
🟩🟩🟩🟩🟩🟩 NYC (39)
🟨🟨🟨🟨⬜️⬜️ SF (28)
🟨⬜️⬜️⬜️⬜️⬜️ Miami (12)
🟨🟨🟨⬜️⬜️⬜️ Austin (20)
🟨⬜️⬜️⬜️⬜️⬜️ LA (12)
🟨⬜️⬜️⬜️⬜️⬜️ Other (13)
NYC wins - guess I’ll throw together a quick event - totally unplanned… Wait? What? I already have something ready? Impossible!
NYC DEMO DAY
Coming to you live very soon. Sign up for updates right here right now.
Happy Friday! Here’s Ashton Kutcher as Steve Jobs on LSD.
Letters From The Editor
Misc. (short for miscellaneous)
Who should be panelists for Demo Days?
I got some interesting feedback from the demo day yesterday:
“Overall I liked it, and I'm chatting directly with Showroom. My only feedback would be not to have "VCs" as panellists or judges. It's so grating. I actually have to mute it, have founders or stranger's or like anyone else.
Is that how we all feel? I always figured they were the going to be the best at asking meaningful / insightful questions, but maybe I’m wrong.
Who's the best Demo Day panelist? |
Talk soon,
Adam
PS - Do you want to sponsor this newsletter or an upcoming live event? Reply to this email and/or shoot a note to [email protected] to learn more.