Last week saw several significant developments that could accelerate three major trends shaping the semiconductor sector:

• Adoption of multi-cloud strategies
• Cooling cross-border investments
• New global expansion paths for the U.S. semiconductor industry

Multi-cloud strategy adoption gains momentum

According to The Information, OpenAI is shifting its relationship with Microsoft by moving toward a more independent approach to data centers and cloud services. One key move is OpenAI’s recent deal with Oracle to rent servers at a massive new data center in Texas, which could drive major semiconductor clients to adopt multi-cloud strategies.
This shift has broader implications for several AI infrastructure segments, including:

• Boosting the competitive edge of AI-focused "neoclouds" like CoreWeave and Lambda
• Heightening interest in alternative chip providers such as Cerebras, Groq, and SambaNova
• Increasing demand for data management and data transportation infrastructure

Cross-border investment faces new hurdles

Cerebras Systems is likely to delay its IPO due to a CFIUS (Committee on Foreign Investment in the United States) review of G42’s investment. G42, which is based in the UAE, currently accounts for 87% of Cerebras' revenue in the first half of 2024. This review raises national security concerns and could lead to further cooling of cross-border investments in the semiconductor sector.
For chipmakers, this could mean an intensified focus on diversifying their client base, while investors may prioritize this factor when assessing hypergrowth opportunities.

Stripe & Nvidia partnership paves the way for global expansion

Stripe and Nvidia have announced a partnership that allows developers and enterprises to prepay for select Nvidia cloud services through Stripe’s payment platform. This move strengthens Stripe's foothold in the AI ecosystem and signals a new path for U.S. semiconductor firms—especially Nvidia—toward global expansion, despite U.S. government restrictions aimed at slowing this growth.

Other High Liquidity Private Company Updates

SpaceX reached a major milestone on Sunday by successfully catching the massive booster stage of its Starship rocket with robotic arms as it returned to the launchpad in southern Texas. This achievement marks a significant step forward in the development of the SpaceTech sector, reinforcing confidence in its future potential.

Monzo has reached a valuation of $5.9 billion following a tender offer, providing liquidity for its employees. The share sale follows a previous fundraise in March when Monzo raised 340 million pounds at a 4-billion-pound valuation.

In a similar move, rival U.K. neobank Revolut secured a new valuation of $45 billion through a secondary sale, shortly after obtaining banking licenses in both the U.K. and Mexico.

Databricks has launched Databricks Apps, a new feature enabling enterprise developers to rapidly build production-ready AI and data applications. Now available in public preview, the tool offers a template-based experience, allowing users to integrate their preferred data and frameworks into functional applications within the Databricks environment. This new capability strengthens Databricks' position in the enterprise AI space by addressing key challenges in AI adoption and providing a more accessible and integrated development platform.

Fintech unicorn Zepz (formerly WorldRemit) secured $267 million in a late-stage funding round led by Accel. Despite being profitable, the company has faced challenges, including significant layoffs, reducing its workforce to around 670 employees from a peak of 1,600 in 2021. According to KPMG, the payments sector remains the top attractor of fintech investment globally, pulling in $21.4 billion in the first half of 2024.

Canva recently faced criticism after announcing a significant price hike for certain plans, such as Canva Teams, which increased from $180 to $500 annually. In response, Canva has rolled back part of the price increase as part of its new “Pricing Promise.” This highlights the difficulties in monetizing AI-driven applications, a topic we recently covered in detail.