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Oyo Talks to Apollo for $660 Million Refinance on IPO Delay

Oyo Talks to Apollo for $660 Million Refinance on IPO Delay

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Oyo Hotels, the hospitality startup backed by SoftBank Group Corp., is in discussions with Apollo Global Management Inc. to refinance a $660 million loan. This move comes as Oyo seeks additional time to reduce its debt, following a delay in its initial public offering (IPO), sources familiar with the matter revealed.

Oyo Talks to Apollo for $660 Million Refinance on IPO Delay
Image Source: bloomberg.com

Oravel Stays Pvt, Oyo’s parent company, is reportedly seeking to extend the loan’s maturity to five years, compared to the existing 2026 deadline. The negotiations are ongoing, with a decision potentially being reached as early as next month, according to insiders.

The talks with Apollo come on the heels of Oyo reporting its first-ever annual profit. Fitch Ratings anticipates further improvement in earnings as the travel industry continues to recover. Oyo, initially heralded as the first Indian unicorn to secure debt from foreign institutions, had offered generous terms and maintenance covenants, a practice common among firms considered risky by investors.

A spokesperson for Oyo addressed the refinancing discussions, stating, “Due to an increase in profits, we regularly get approached for cheaper financing options, but the company’s board hasn’t approved anything, including prepaying some portion.” Apollo declined to comment on the matter.

As of now, there’s no final decision on the refinancing terms, and Oyo’s loan was indicated at 86.5 cents on the dollar according to data compiled by Bloomberg.

Oyo’s prolonged wait for its IPO has proven to be more protracted than anticipated. The anticipated proceeds from the IPO could have assisted the company in reducing its debt, but instead, Oyo is exploring refinancing options. The startup’s founder, Ritesh Agarwal, has been striving for years to bring Oyo public. The company, 47% owned by SoftBank, also counts Airbnb Inc. among its backers.

Also Read: Dell Says Servers, Not PCs, Are Its Main Growth Engine in the AI Era

Oyo had initially filed for an IPO in 2021, aiming to raise 84.3 billion rupees ($1 billion). However, it faced challenges as technology valuations plummeted, impacting startups globally. Although Oyo filed fresh IPO documents on April 1, key details such as the amount sought, advisors, and financial specifics remain undisclosed.

The ongoing negotiations with Apollo underscore Oyo’s strategic financial moves as it navigates the complexities of the hospitality industry and seeks to strengthen its position in the market.

Visa Initiative to Invest $100 Million in Generative AI Ventures

Visa Initiative to Invest $100 Million in Generative AI Ventures

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In a move set to reshape the landscape of commerce and payments, Visa has declared its intention to invest $100 million in companies at the forefront of developing generative AI technologies. 

Visa Initiative to Invest $100 Million in Generative AI Ventures
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The investment initiative will be executed through Visa Ventures, the global corporate investment arm with a history spanning 16 years. Visa, a trailblazer in AI applications for payments since 1993, is now focusing its attention on the burgeoning field of generative AI. This subset of artificial intelligence is characterized by its ability to generate text, images, or other content based on extensive datasets and textual prompts.

Jack Forestell, Chief Product and Strategy Officer of Visa emphasized the profound impact generative AI will have, stating, “While much of generative AI so far has been focused on tasks and content creation, this technology will soon not only reshape how we live and work, but it will also meaningfully change commerce in ways we need to understand.”

David Rolf, Head of Visa Ventures, underscored the transformative potential of generative AI, calling it “one of the most transformative technologies of our time.” He noted that Visa Ventures possesses flexibility in terms of the number and size of investments, expressing an interest in making a range of smaller investments in the early stages of the industry.

Rolf outlined the criteria for potential investments, specifying that Visa is seeking to support companies applying generative AI to address real challenges in commerce, payments, and fintech. This includes B2B processes around payments and infrastructure with the potential to significantly impact commerce. Rolf emphasized that Visa is open to engaging with companies at various levels of the technology stack, from data organization for generative AI to end-user experiences.

Also Read: Arc Raises $70 Million to Build the Tesla of Boats

Furthermore, responsible AI use aligning with Visa’s policies is a key consideration. Rolf stated, “One of our key considerations is how well these companies are practicing responsible use of AI, in line with Visa’s policies.”

This announcement follows Visa’s strategic move to appoint Marie-Elise Droga as the head of fintech, who noted that her team frequently collaborates with the Visa Ventures team. This collaboration serves as a scouting engine, identifying innovative startups that align with Visa’s vision for the future of commerce and payments. As Visa Ventures embarks on this $100 million investment journey, the landscape of generative AI technologies in commerce and payments is poised for significant transformation.

Palantir Wins $250 Million AI Deal with US Defence Department

Palantir Wins $250 Million AI Deal with US Defence Department

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A brand-new $250 million artificial intelligence agreement for the U.S. Army would help Palantir Technologies (PLTR), claims a financial professional who rates the PLTR stock underperform. On Wednesday, following the news, Palantir’s stock increased.

Palantir Wins $250 Million AI Deal with US Defence Department
Image Source: bloomberg.com

“While this contract adds fuel to the argument that Palantir is more like a government service provider, this contract bodes well for Palantir’s fourth-quarter and 2024 revenue,” William Blair analyst Louie DiPalma said in a note to clients.

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The U.S. Army has a three-year agreement for research and development operations.

Military leaders have praised the possible combat uses of machine learning and artificial intelligence, and business has matched the enthusiasm. Interest in these technologies has grown in the defence community in recent years.

The Government Accountability Office, a government watchdog, said that as of 2021, the Defence Department was managing over 685 AI-related projects. A minimum of 232 were under Army control.

Today’s stock market saw a 6.4 percent rise in PLTR stock, which closed at 14.85.

If the firm is awarded a new contract by the National Health System of the United Kingdom, the price of PLTR stock might increase further. Throughout the coronavirus crisis, the NHS employed Palantir. Now available is a larger deal valued at around $595 million. A choice is anticipated in 2023.

Palantir has worked with government clients to employ AI techniques for the military, combating terrorism, and gathering intelligence. Additionally, such artificial intelligence created prediction models by using pattern recognition.

Generative AI is currently being included by Palantir in its software system.

Generic artificial intelligence models analyze “prompts,” such as internet search terms that specify what a user is looking for. Technologies that use generative artificial intelligence independently produce literature, pictures, videos, as well as computer code. Palantir also wants to offer generative AI technology in industrial areas like the healthcare industry.

Early this year, Palantir unveiled the “Artificial Intelligence Platform,” its latest product. Palantir reports that the AIP has 150 consumers as of the middle of September, an increase of fifty percent over the previous month.

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Palantir has also not provided pricing information for its generative AI solutions. Analysts claim that this makes the possible income rise from the AIP uncertain.

On August 1, PLTR stock reached a 52-week intraday record high of 20.24 as AI shares pushed higher. The PLTR stock, however, has now fallen from its 52-week high as of September 27. However, Palantir stock has grown by 124 percent so far in 2023.

From Unicorns to Camels: How AI Startups Transcend The Divide in Tech Investment

From Unicorns to Camels: How AI Startups Transcend The Divide in Tech Investment

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In the ever-evolving landscape of technology, artificial intelligence (AI) startups are emerging as the true pioneers, defying conventional constraints and making significant strides in the global tech arena. 

From Unicorns to Camels: How AI Startups Transcend The Divide in Tech Investment
Image Source: smill49.medium.com

Venture capital firms, traditionally inclined towards Silicon Valley giants, are now realigning their focus to recognize the exceptional prospects within this burgeoning field. What sets these AI startups apart is their ability to adapt and innovate, irrespective of their geographical location. Whether nestled in the familiar confines of Silicon Valley or flourishing in lesser-known tech hubs, AI startups are showcasing remarkable adaptability. Their ingenious use of AI technology has allowed them to create groundbreaking solutions, disrupting established industries and pushing the boundaries of what was once deemed possible.

The core of this revolution lies in advanced algorithms and rapid computing power that, astonishingly, didn’t exist a mere decade ago. These technological advancements have enabled AI startups to seamlessly overcome the limitations of traditional setups, opening up new possibilities and reshaping industries. As a testament to their potential, the AI market is expected to witness exponential growth, with a projected value of nearly $100 billion ballooning twentyfold by 2030, reaching nearly $2 trillion.

AI startups are not confining their impact to a single industry; they are leading the charge across various sectors. One notable example is the fintech industry, which has experienced a remarkable transformation due to AI-powered products. In 2018, AI-related investments in fintech amounted to a modest $408 million. Fast forward to the present, and the sector has witnessed a seismic shift, with investments reaching unprecedented levels. The fintech industry’s value, propelled by AI innovations, now stands at a staggering figure, illustrating the transformative power of these startups.

Moreover, AI is penetrating diverse sectors, including supply chains, marketing, product manufacturing, research, and analysis. The versatility of AI applications is a testament to its far-reaching impact on the business landscape. As AI startups continue to refine their offerings and expand their reach, they are set to become key players in shaping the future of industries worldwide.

Also Read: OpenAI Seeks $90 Billion Valuation in Possible Share Sale, WSJ Says

In this era where unicorns symbolize tech success, AI startups are introducing a new metaphor – that of camels, resilient and adaptable creatures that traverse diverse landscapes. The adaptability of AI startups to different environments and their transformative impact on industries make them the camels of the tech investment desert, traversing terrains that were once thought impassable and proving that the future belongs to those who can harness the power of artificial intelligence.

OpenAI Seeks $90 Billion Valuation in Possible Share Sale, WSJ Says

OpenAI Seeks $90 Billion Valuation in Possible Share Sale, WSJ Says

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In a move that could reshape the landscape of artificial intelligence (AI) development, OpenAI is reportedly in talks with investors regarding a potential share sale that could value the cutting-edge startup at a staggering $80 billion to $90 billion. 

OpenAI Seeks $90 Billion Valuation in Possible Share Sale, WSJ Says
Image Source: finance.yahoo.com

This groundbreaking development, revealed by the Wall Street Journal on Tuesday, cites insider sources familiar with the matter. The proposed deal, as disclosed by those close to the discussions, aims to allow existing OpenAI employees to cash in on their shares, rather than the company opting to issue new shares to generate additional capital. This strategic move not only provides a lucrative opportunity for OpenAI’s workforce but also positions the company as a key player in the fiercely competitive AI industry.

Representatives from OpenAI have already commenced discussions with potential investors, presenting the deal’s terms. However, it’s essential to note that the reported terms are subject to change, and negotiations are still in progress. The startup’s decision to opt for a share sale rather than conventional fundraising avenues suggests a unique approach to fueling its growth trajectory.

OpenAI, the brainchild behind the highly acclaimed ChatGPT, has been at the forefront of AI innovation, consistently pushing the boundaries of what is achievable in the field. The potential valuation of $80 billion to $90 billion is a testament to the company’s standing in the industry and its promise for future advancements.

While this move could signify a significant financial boost for OpenAI, it also raises questions about the company’s future plans and the potential impact on the development of AI technologies. Investors are likely to closely scrutinize the terms and conditions of the proposed share sale, evaluating the risks and rewards associated with investing in a venture of this nature.

As of now, OpenAI has not provided an official statement or response to queries from Reuters, leaving the industry and the public eager for further details. The outcome of these negotiations could potentially position OpenAI as one of the most valuable AI startups globally, shaping the trajectory of the industry and influencing the direction of future technological advancements. As the talks unfold, the tech world watches closely, anticipating the next chapter in OpenAI’s remarkable journey.

Amazon to Invest as Much as $4 Billion in AI Startup Anthropic

Amazon to Invest as Much as $4 Billion in AI Startup Anthropic

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Amazon has announced a significant investment of up to $4 billion in the cutting-edge artificial intelligence startup, Anthropic. 

Amazon to Invest as Much as $4 Billion in AI Startup Anthropic
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This move is part of Amazon’s strategic efforts to stay competitive in the rapidly evolving field of AI and cloud computing, where it faces stiff competition from rivals like Microsoft and Google.

Under the terms of the deal, Amazon’s employees and cloud customers will gain early access to Anthropic’s advanced AI technology, enabling them to integrate it into their businesses. Anthropic, headquartered in San Francisco, has also committed to relying primarily on Amazon’s cloud services, including using Amazon’s proprietary chips for training its future AI models.

In a joint interview, the CEOs of Amazon’s cloud division and Anthropic revealed that the initial investment would amount to $1.25 billion. Additionally, both parties have the option to trigger an additional $2.75 billion in funding from Amazon at a later date. However, specific details about Amazon’s ownership stake in Anthropic and the startup’s updated valuation remain undisclosed. Amazon emphasized that it would not acquire a board seat and that its stake would constitute a minority position.

This investment marks Amazon’s most significant response to the AI advancements made by its competitors, particularly Microsoft and Alphabet’s Google. Microsoft has been investing billions in its partnership with OpenAI since 2019, providing its customers with exclusive access to OpenAI’s innovative text and image generation technology. Google, on the other hand, has been at the forefront of AI development and previously invested in Anthropic during its $450 million fundraising round in May.

The collaboration between Amazon and Anthropic is expected to drive demand for AI-related hardware, including chips essential for AI applications. Anthropic has agreed to collaborate with Amazon on developing technology for Amazon’s in-house Trainium and Inferentia chips.

This investment demonstrates the ongoing efforts of major cloud companies to establish ties with AI startups reshaping the industry landscape. These partnerships are crucial for staying ahead in the fiercely competitive AI and cloud computing market.

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As Amazon intensifies its focus on AI through its investment in Anthropic, the tech giant aims to enhance its position in the AI race, competing head-to-head with industry leaders such as Microsoft, Google, and others. The outcome of this strategic partnership will likely have a significant impact on the future of AI technology and its integration into Amazon’s extensive range of services.

As the tech world continues to evolve, Amazon’s investment in Anthropic showcases the company’s commitment to staying at the forefront of technological innovation and delivering cutting-edge solutions to its customers. With the potential to shape the future of AI, this partnership marks a pivotal moment in the ongoing battle for supremacy in the cloud and AI space.