💰Scale AI's $1 Billion Series Round

In today's email

1. 💰 Scale AI's $1 Billion Series F Funding Round

2. 📈 Turbocharging Legal Contract Transformation in the Age of Generative AI

3. 💻 Nvidia's Anticipated Earnings Surge Amid AI Demand

4. 🤯 Quick Takes

Read Time: 5 Minutes

In the Know​
Scale AI's $1 Billion Series F Funding Round

San Francisco-based startup Scale AI announced a significant milestone on Tuesday, securing $1 billion in a Series F funding round. This latest investment round has nearly doubled the company’s valuation to $13.8 billion. Ranked No. 12 on this year’s CNBC Disruptor 50 list, Scale AI has now amassed a total of $1.6 billion in funding to date.

Key Points:

• Funding and Valuation: Scale AI raised $1 billion in Series F funding, boosting its valuation to $13.8 billion.

• Lead and New Investors: The round was led by Accel and included new investors like Cisco, DFJ Growth, Intel, ServiceNow, AMD, WCM, Amazon, Elad Gil, and Meta.

• Existing Investors: Existing investors such as Y Combinator, Index Ventures, Founders Fund, Coatue, and Nvidia also participated.

• Core Business and Mission: Scale AI focuses on labeling data for AI, enhancing data for diverse AI applications, and advancing towards AGI.

• Public Sector Engagement: The company secured a DoD contract to enhance AI capabilities across all military branches and launched Donovan, an AI decision-making platform.

• Global Expansion: Scale AI plans to establish a European headquarters in London to support U.K. government AI initiatives.

Scale AI's recent $1 billion funding round underscores its significant role in the AI industry, reflected in its near doubling valuation to $13.8 billion. With robust support from both new and existing investors, Scale AI continues to expand its influence, particularly in the generative AI and large language model sectors. Its strategic engagements with the public sector and global expansion plans, including a new office in London, position the company as a pivotal player in the AI landscape, driving advancements in both commercial and governmental AI applications.

Turbocharging Legal Contract Transformation in the Age of Generative AI

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Nvidia's Anticipated Earnings Surge Amid AI Demand

Nvidia (NVDA) is poised to release its first-quarter earnings after the market close on Wednesday, in a report that could significantly impact investors. Wall Street anticipates a remarkable performance, with revenue and profits projected to have surged by over 200% and 400%, respectively, compared to the previous year. Analysts forecast an adjusted earnings per share (EPS) of $5.65 on revenues of $24.69 billion, a substantial leap from last year's $1.09 EPS and $7.19 billion in revenue. Nvidia's stock has soared, climbing more than 200% in the past year and nearly 700% since the market lows of October 2022, reflecting heightened investor confidence.

The bulk of Nvidia's anticipated revenue comes from its Data Center division, expected to generate $21 billion, a sharp increase from $4.28 billion in the same period last year. Meanwhile, its Gaming segment is predicted to see revenue rise to $3.5 billion from $2.24 billion. The robust demand for Nvidia's chips, particularly from major hyperscalers such as Amazon, Google, Meta, and Microsoft, underscores the AI boom's impact on the company. However, concerns linger about the transition from Nvidia’s current Hopper AI chips to the upcoming Blackwell line, which might cause customers to delay orders, potentially affecting short-term sales. Despite these challenges, analysts like Stifel's Ruben Roy remain optimistic, raising their price targets and expecting Nvidia to exceed market expectations.

Quick Takes

• AI to Drive Stock Market Growth Over the Next Decade: Former Cisco CEO John Chambers predicts that artificial intelligence will be the main driver of the stock market for the next decade, with AI-related stocks expected to outperform non-AI stocks significantly. Chambers, now CEO of JC2 Ventures, emphasizes that investors who focus on AI stocks consistently over the next five to ten years will likely see substantial returns.

• UK Data Watchdog Investigates Microsoft Over New Screenshot Feature: The UK's Information Commissioner's Office (ICO) is inquiring with Microsoft about its new Recall feature, which takes frequent encrypted screenshots on Copilot+ PCs, following privacy concerns. Microsoft assures that Recall is optional, with data stored locally and not accessed by the company, emphasizing their commitment to privacy and security.

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