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

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

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.

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

BREAKING: US military begins emergency AC airdrops over Britain after temperatures exceed 'quite warm'

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

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.

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

It's that time of year again!

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

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

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

This video is so funny

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

For real though

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

Me waiting for my crypto portfolio to recover

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

The AI Super Bubble is ready to burst, warn two of China's most successful hedge fund managers

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

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.

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

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

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

THE STOCK MARKET TOMORROW MORNING

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

“Western women are very assertive, very masculine.“

He’s not wrong. I stopped dating Aussie women 15 years ago and never looked back. Asian women are more feminine and know how to treat a man.

Just don’t ever bring them back to the west.

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶

ISLAMIFICATION: The Islamists taking over Sydney, Australia are growing impatient. Islam is must conquer to survive and conquering the west it is…

🄳🄾🄾🄼🄿🤖🅂🅃🄸🄽🄶