AI startups with no revenue have found a way to inflate their valuations. They raise funding in two tranches at wildly different prices. Ineffable Intelligence raised $11 million from Sequoia at a $55 million valuation, then raised $1.1 billion from other investors at a $4 billion valuation weeks later. The headlines reported the $5.1 billion number. Over 63 AI neolabs are collectively valued at $300 billion and have raised $48 billion.
My Take
Sequoia gets a 70x markup on paper before the company does anything. The founder pitched AI in toasters with no deck and no memo, and raised $1.1 billion. One VC on the call said he left with more questions than answers. Sequoia invested anyway.
This is how the bubble works. VCs inflate valuations with tranched rounds, startups use that headline number to recruit employees whose options price off the top, and those employees take on more risk for less upside without knowing the lead investor paid a fraction of the sticker price. One VC called it a "pump and dump" round. Another called it the "Sequoia Scam."
Meanwhile enterprise customers are capping AI spend, communities blocked $130 billion in data center projects, and 16% of the public thinks AI will be positive. The Nasdaq dropped 4% this week because the market is starting to ask the same question the investors on that Zoom call should have asked. Where does the revenue come from? 63 neolabs valued at $300 billion and not one of them has an answer yet.
Hedgie
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My Take
Sequoia gets a 70x markup on paper before the company does anything. The founder pitched AI in toasters with no deck and no memo, and raised $1.1 billion. One VC on the call said he left with more questions than answers. Sequoia invested anyway.
This is how the bubble works. VCs inflate valuations with tranched rounds, startups use that headline number to recruit employees whose options price off the top, and those employees take on more risk for less upside without knowing the lead investor paid a fraction of the sticker price. One VC called it a "pump and dump" round. Another called it the "Sequoia Scam."
Meanwhile enterprise customers are capping AI spend, communities blocked $130 billion in data center projects, and 16% of the public thinks AI will be positive. The Nasdaq dropped 4% this week because the market is starting to ask the same question the investors on that Zoom call should have asked. Where does the revenue come from? 63 neolabs valued at $300 billion and not one of them has an answer yet.
Hedgie
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This is how an F-15 gets fed before it goes to war
Just crews loading a massive belt of ammunition by hand under one of America’s most iconic fighter jets.
Modern airpower has a human loading dock.
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Just crews loading a massive belt of ammunition by hand under one of America’s most iconic fighter jets.
Modern airpower has a human loading dock.
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BREAKING: US military begins emergency AC airdrops over Britain after temperatures exceed 'quite warm'
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TGV broken down in a tunnel: 50°C heat, babies fainting, staff exhausted. A five-hour delay. This is the reality of French transport under Macron.
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A group of Asian American university friends in San Francisco.
All the girls in this picture are hooking up with White guys and all the guys are single & celibate
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All the girls in this picture are hooking up with White guys and all the guys are single & celibate
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People's well-being is more closely associated with their income ranking within society than with absolute income.
Moreover, in countries where social solidarity is strong, this effect is approximately 80% weaker. In other words, societies with strong solidarity buffer the psychological impact of status competition based on income.
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Moreover, in countries where social solidarity is strong, this effect is approximately 80% weaker. In other words, societies with strong solidarity buffer the psychological impact of status competition based on income.
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The AI Super Bubble is ready to burst, warn two of China's most successful hedge fund managers
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Feminists on reddit are upset at the “growing problem” of Christian groups in Brisbane.
The left hate Christianity because they know it turns society more to the right and makes them anti-feminist.
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The left hate Christianity because they know it turns society more to the right and makes them anti-feminist.
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A study done on 361,645 job applications in almost 30 countries over the last 40 years discovered the hiring bias in society is actually against MEN, not women
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