June Tech Round-Up: The Generative AI Battleground, Six Months In

June 12, 2023 Kevin Waller

Here we are, six months into the generative AI battleground. The AI hype cycle is running red hot as the tech titans duke it out for supremacy, sinking billions of dollars into new platforms.

This month we explore the deal frenzy, ask experts where Gen AI will likely have its biggest impact - and following Nvidia’s huge month - discover how hardware, chips and hyperscalers are fast becoming the picks and shovels of the AI gold rush.

Enjoy, from the team at North Ridge Partners.

(Image by Dall-E 2: “painting of OpenAI battling it out with the technology giants”)

What We’ve Been Up To

Deals. On the back of advising Indonesian client Ooredoo IndoSat on the sale of a share in its data centres for US$300m, in June NRP advised Australian client Fleet Space on its hugely successful A$50m Series C raise (concluded at 2x its Series B valuation). Add that to funding and advisory work for Australian fintech client Spaceship and a successful funding round for SaaS business GeoOp, and it’s proving to be a busy downturn.

Singapore bound! NRP partner John Moore will shortly transfer to Singapore to run our busy Southeast Asia corporate finance practice. We aim to double our size there in short order.

Original Thinking from North Ridge Partners

Generative AI burst into public consciousness in late 2022. Despite the correction in global VC funding, large language models are seeing strong capital inflows as tech titans and professional investors jockey for position. The early focus was on new software and consumer applications, but chip and hardware vendors are now keenly anticipating a new growth cycle, fueled by data centres recalibrating their equipment needs.

The AI Hype Cycle is Running Red Hot: since Microsoft’s complex investment in Open AI (reportedly worth US$10bn) grabbed the headlines earlier this year, other generative AI players have raised large chunks in this battle for supremacy.

Hardware and Hyperscalers are the Picks and Shovels of the AI Gold Rush: Nvidia rode the growth of the global gaming industry. Right now, it’s the poster child for hardware success in the emerging gen AI ecosystem. Others are also set to cash in.

Big Tech

Has Apple turned Meta’s VR/AR/XR unit into the next Blackberry, or will it create a rising tide for all boats including the Good Ship Meta?
No metaverse here…it’s all about spacial computing.
Google staffer leaks: “we have no moat, and neither does OpenAI.”
Nvidia envy: the AI chip maker’s stock pops as it boosts guidance by … 28%.
When you’re on a roll…OpenAI launches VC fund.
Gulp. Bill Gates predicts the end for Google Search and Amazon.

Asia Pacific Tech News

Breaking up is hard to do. Big news from Sequoia and Alibaba.
Temu takes all?
TikTok’s Indian clones boom after its withdrawal from the Indian market.
Insurtech still hot as Singapore start-up Bolttech raises $200m.
Yanolja strikes! Softbank-backed SK giant Yanolja buys Israeli travel tech company Go Global Travel.

Stuff We Found Interesting

IBM bets on open-source Watson recharge from Hugging Face and other vendors.
Your meal has arrived - robots are coming to your home to feed you.
23 year old makes US$100k in Chatbot revenues in first week!
Google’s search dominance is under threat, and not simply from generative AI. The long-term trend is not its friend. But it’s still taking its time to launch Bard.
Totally trucked. Leaked documents reveal problems with Tesla’s Cybertruck.

North Ridge Partners: technology investment banking across the Asia Pacific

North Ridge Partners works with technology companies across the Asia Pacific to achieve transformational outcomes through providing strategic financial advice, advising on M&A transactions and raising capital services. We’re experienced deal makers who have built, run, and sold numerous technology companies.