Nvidia Explodes AI Rally, Xiaohongshu's Billionaire, Reliance Makeover
23 May 2024: Nvidia rockets AI stocks, China's Xiaohongshu lavishes Gen Z, Reliance beautifies with AI, big AI investments, shocking revelations on-chip security
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Latest in AI,
1. 1-Minute Roundup
2. Headlines
3. AI Investment Deals
4. Other AI News
1-Minute Roundup
Headlines:
Nvidia's quarterly results fuel a rally in AI stocks, easing spending concerns.
Xiaohongshu taps affluent Chinese Gen Z females with influencers and AI.
Reliance's Tira bets on AI for India's booming beauty market.
AI Investment Deals:
Artemis raises $1.5M to automate data cleaning for AI/analytics.
Bolster raises $14M for AI-powered multi-channel threat protection.
Nory secures $16M for its AI hospitality management platform.
WitnessAI unveils AI safety platform after raising $27.5M.
Expedera raises $20M for Neural Processing Unit IP products.
Kudos raises $10.2M for its AI-powered smart wallet service.
PolyAI secures $50M for conversational AI voice assistants.
DeepL raises $300M to drive AI language translation growth.
Praktika raises $35.5M for AI avatars in language learning.
H raises $220M for global foundation model and agentic AI.
Velotix AI data security platform receives investment.
Others:
ASML and TSMC can turn off chips if China invades Taiwan.
OpenAI inks $250M+ deal with News Corp for quality content.
Zuckerberg creates an AI advisory council for Meta's innovation.
FCC proposes disclosing AI in political ads for transparency.
Schumacher's family wins case against AI-generated 'interview'.
Amazon may charge for enhanced, generative AI-powered Alexa.
Headlines
Nvidia's Stellar Results Fuel Rally in AI Stocks
Nvidia's blowout earnings and upbeat forecast have boosted AI stocks, easing concerns about a spending slowdown and reinforcing optimism about the tech revolution. Chipmakers, server makers, and Nvidia suppliers rallied following the results.
Why it Matters: As a leading AI chipmaker, Nvidia's results are a bellwether for broader AI spending momentum across companies building AI infrastructure.
Numbers:
Nvidia's Q2 revenue forecast of $28 billion beats estimates.
Shares are up 7% premarket, set to add over $100 billion in market cap.
Announcing 10-for-1 stock split.
Sales to cloud providers are still around 45% of data centre revenue.
Zoom In: Nvidia says demand is expanding beyond cloud providers to autos and healthcare, signalling diversification opportunities.
Big Picture: The stellar report confirms AI spending remains robust, fueling a rally in chipmakers, server vendors, and Nvidia suppliers like TSMC and SK Hynix. Nvidia's AI chips, like H100 accelerators, have become must-haves for building large language models and generative AI tools.
Reality Check: While opportunities are expanding, cloud providers dominate Nvidia's current revenue, leaving room for further diversification.
China's Xiaohongshu Taps Niche of Affluent Gen Z Females
The lifestyle platform Xiaohongshu has found success catering to young, wealthy Chinese female professionals by leveraging influencers and AI technology to drive engagement and e-commerce. Its innovative approach has minted billionaire founders and attracted significant investors.
Why it Matters: The app highlights opportunities to tap niche but lucrative consumer segments through engaging social content and e-commerce.
Numbers:
$6 billion combined wealth for co-founders Mao and Qu.
$20 billion valuation in 2021 funding round.
300 million monthly active users.
17% of users spend over $400 monthly online.
Zoom In: Key features include influential creator content, AI-driven product recommendations, and luxury brand partnerships.
Big Picture: Xiaohongshu defied China's tech crackdown by carving a differentiated niche, though an IPO remains elusive amid competition and geopolitical tensions.
How it Works: Influencers' "Content seeding" drives engagement, and AI technology tracks interests to personalise recommendations.
Reality Check: Maintaining differentiation amid intensifying e-commerce competition from giants like Alibaba will be crucial. While focusing on Gen Z professionals was savvy, potential regulatory and geopolitical risks could impact future global expansion.
Reliance's Tira Bets on AI Tools in Sizzling Indian Beauty Market
Reliance Industries' new beauty venture, Tira, is leveraging AI technologies like virtual makeup try-ons and fragrance finders to attract customers in India's booming but crowded beauty market, competing against rivals like Nykaa and Tata's Palette.
Why it Matters: The lucrative beauty market in India is heating up with new entrants like Tira aiming to capture market share through AI & tech-driven innovations.
Numbers:
12 Tira stores across India since launch in April 2023.
Indian beauty segment is expected to grow 10% annually till 2027.
Tira's competitor, Nykaa, has 187 stores.
Zoom In: Key Tira experiences include AI-powered fragrance finders, skin analysers for product matches, and virtual makeup try-ons.
Big Picture: Major conglomerates like Reliance and Tata are aggressively venturing into India's lucrative beauty space as disposable incomes rise. Sustaining differentiation amid intensifying competition will require continuous innovation from players like Tira.
How it Works: Tira leverages technologies like AI, photo analysis and interactive displays to personalise recommendations and deliver engaging shopping experiences.
AI Investment Deals
Artemis raises $1.5M pre-seed funding to automate data cleaning for analytics and AI, led by Raven Indigenous Capital Partners. Founded in 2022, the platform accelerates data-cleaning processes up to 50 times.
Bolster raises $14M Series B, led by M12, to enhance AI-powered multi-channel threat protection. Bolster supports over 120 customers, detects and eradicates phishing across digital channels, and has raised over $40M.
Nory secures €14.7M ($16M) in Series A funding led by Accel, totalling €25M raised. Nory's hospitality management platform, an AI-powered system used by clients like the Jamie Oliver Group, saw a 400% revenue jump last year.
WitnessAI unveils an AI safety platform after securing $27.5M in funding from GV Management and Ballistic Ventures. Founded in 2023, WitnessAI focuses on AI privacy, governance, and security, addressing visibility, control, and protection barriers for enterprise AI adoption.
Expedera raises $20M Series B funding led by Indie Semiconductor, totalling over $47M. The funds will advance its Neural Processing Unit (NPU) IP products and expand its global engineering footprint.
Kudos raises $10.2M in Series A funding, led by QED Investors, to enhance its AI-powered smart wallet service. Founded in 2021, Kudos optimises consumer rewards and benefits for over 200,000 members.
PolyAI secures $50M Series C funding led by Hedosophia, NVentures, and others, bringing total funding to over $120M. Founded in 2017, PolyAI develops lifelike conversational AI voice assistants for enterprise contact centres, serving nearly 100 customers, including Fortune 500 companies.
DeepL, an AI language translation startup, raises $300M on a $2B valuation to drive B2B growth, led by Index Ventures. DeepL, based in Cologne, Germany, has over 100,000 business customers and aims to expand sales, marketing, and R&D efforts.
Praktika raises $35.5M Series A led by Blossom Capital to expand AI avatars for natural language learning. With 1.2M monthly users in 100 countries, Praktika generated $20M in revenue last year.
H, a Paris-based global foundation model and agentic AI company, raises $220M in seed funding from backers, including Accel, UiPath, Bpifrance, Eric Schmidt, and Amazon.
Velotix, a NYC-based AI-driven Data Security Platform provider, receives investment from Barclays Bank and Capri Ventures.
Others
ASML and TSMC Can Disable Chip Machines If China Invades Taiwan
ASML and TSMC can remotely turn off advanced EUV chip-making machines in the event of a Chinese invasion of Taiwan, addressing US concerns about the security of the chip industry.
OpenAI Inks Deal With Wall Street Journal Publisher News Corp.
OpenAI will access content from over a dozen News Corp. publications, including the Wall Street Journal, Barron’s, and MarketWatch, for its ChatGPT products.
The partnership, potentially worth more than $250M over five years, aims to ensure high journalistic standards and enhance the quality of the information in OpenAI’s offerings.
Zuckerberg Creates AI Advisory Council for Meta
Meta has established the Meta Advisory Group, which includes Stripe’s Patrick Collison, Shopify’s Tobi Lütke, former GitHub CEO Nat Friedman, and investor Charlie Songhurst.
The council will offer strategic insights and recommendations, meeting periodically with Meta’s management to help drive innovation and growth in AI-focused products.
FCC Proposes Disclosure Requirement for AI-Generated Content in Political Ads
The FCC has proposed a rule requiring political ads to disclose any AI-generated content, ensuring consumer transparency.
This rule would apply to cable operators, satellite TV, and radio providers but not to streaming platforms or YouTube, which fall outside the FCC's regulatory authority.
Schumacher's Family Wins Compensation for AI-Generated 'Interview'
Michael Schumacher's family has been awarded €200,000 (£170,212) from the publishers of Die Aktuelle, which printed an AI-generated 'interview' with the former F1 driver.
The magazine's cover story in April 2023 suggested an actual interview, but AI generated the supposed quotes. Subsequently, the publication's editor was sacked, and the Funke media group apologised to the family.
Amazon Alexa’s Big AI Upgrade Could Require New Subscription
Amazon plans to charge a separate subscription fee for the upcoming generative AI-powered version of Alexa and Prime membership.
This enhanced version of Alexa, expected to launch later this year, will feature improved conversational abilities and handle multiple requests in one command, differentiating it from the existing free version.
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